Reasons to Retire Abroad
Information about every element of starting a new life overseas is now just a mouse click away, and suddenly the world really does seem like a much smaller, more accessible place.
Many elements will factor in when it comes to your own choices about where you plan to retire, but time and again when questioned, those Britons who have already relocated overseas or who are in the active planning stages cite the following top 5 reasons for wanting to move abroad when they give up work…
1) Better weather
2) Less crime
3) An improved lifestyle
4) Lower cost of living
5) And lower taxes on pension income
These reasons are valid, genuine and achievable if you plan your retirement carefully.
1) Better weather – the climate in the UK is changeable, to put it politely! Whilst Britain does enjoy four distinct seasons, the summer is always all too short, and the winter can drag on for too many months. What’s more, no one would ever move to the UK for its weather – which is why it’s unsurprising that so many Britons seek warmer climes when looking for the best place to retire abroad.
Because traditionally we Brits seek out sunshine when we go on our annual holidays, many Brits who plan a retirement abroad choose one of the nations they have fond memories of from their summer holidays.
It is always preferable to move to a nation you have experience of – but it’s also critical to remember that a two week holiday is not a fair indicator of what a brand new life will be like living in your given nation!
What’s more, even the Mediterranean has a wintry season for example, and some countries where the temperatures never drop below freezing suffer from other climatic nasties such as hurricanes, rainy seasons or high humidity. Therefore it’s important to look more closely at the year-round climate in your destination of choice, and ensure it’s not too hot in the summer, not too wet in the winter, and that it will suit your requirements and desires.
2) Less crime – whilst some parts of the UK remain safe and appealing places to live, work and raise a family, increasingly more densely populated areas are suffering from an increase in crime levels. So-called ‘petty crime’ is also increasing as the UK suffers from higher unemployment rates and poverty levels – and it’s the petty crimes against the person and their possessions that can make living in some towns and cities in Britain unbearable.
In retirement no one wants to feel vulnerable and unsafe, and yet that’s how people are being left to feel as police numbers are cut and seemingly less action is taken against criminals and thugs who can make life in the UK really depressing and unpleasant.
Naturally enough, if one can escape high crime by relocating, retirement is the perfect time to move because the requirement to be in a given location for employment no longer exists. Therefore increasingly some Britons are citing their main reason for relocation abroad in retirement as wanting a safer place to live.
It’s always advisable to look beyond reported crime statistics when choosing a new nation however, because whilst on paper a country may appear safe, in reality certain parts of that nation may not actually feel safe to live in. Therefore it’s really critical that anyone wanting to move abroad spends time exploring and experiencing a given location overseas before committing to move there.
Part of the exploration process will be experiencing the location at all times of the day and night to see if it is indeed safe. It’s worth speaking to other expats about the realities of the crime levels too – you can do this by using forums on the internet for example, and posing questions about how safe expats feel living in a chosen nation.
3) An improved lifestyle – in the UK there is increasing pressure being placed on every household to work, work, work. Everything from taxation to energy bills are going up, so as the cost of living shoots up and job security falls dramatically, the lifestyle ‘enjoyed’ by Britons is declining.
According to a recent quality of life index by uSwitch, the quality of life in the UK is the worst in Europe…
Therefore, once again it is unsurprising that so many Britons planning a retirement abroad are doing so in a bid to improve the quality of their lives…and it shouldn’t be too difficult to achieve this improvement!
4) Lower cost of living – achieving a lower cost of living is not as easy as it once was. Inflation is running high in many of the most desirable nations as globally speaking, energy and food costs are soaring. Britons have the added disadvantage of having a very weak currency that does not transfer well. However, property costs abroad can be lower, and those Britons who carefully research their nation choice can find a place where day-to-day living costs are less than in the UK.
The key to remember for all those seeking a lower cost of living is that it is no longer a given that if you move abroad you will be paying out less. So research must be done very carefully, factoring in everything from the currency conversion rates, local inflation, grocery, energy and property prices.
Again, forums can be a good place for would-be expats to chat with those who already live abroad in a given country. You can then talk about what the cost of living really is.
5) And lower taxes on pension income – in the UK pensions are taxed as income received, and this can seriously erode the amount a retiree has to live on. In a handful of countries abroad pensions are not taxed at all, or are taxed at a much lower rate than in the UK. Additionally, in some nations if you leave the majority of your wealth outside that nation it legitimately escapes taxation.
If you can enjoy your pension income without the deduction of high rates of taxation, naturally enough your money will take you much further and afford you a better lifestyle in retirement.
Culled from QROPS Choices
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