The image of a couple, walking arm in arm down a beach, all too often accompanies retirement guides, press articles and blogs.
Not everyone wants to retire overseas but for many it is a long held dream, which may be even closer following the introduction of Pension Freedom.
But where to go?
A new survey by Retirement Advantage has revealed the top 10 most popular locations, meaning you can join your fellow expats, or avoid them and head for alternatives countries, depending on your preference!
The most popular destinations of those people who stayed in Europe were:
- Spain (24%)
- France (20%)
- South East Europe e.g. Greece, Turkey (9%)
- Portugal (6%)
- Elsewhere (6%)
More far flung countries are also popular with the top five destinations as follows:
- North America (22%)
- Outside Europe but region not disclosed (17%)
- Far East (15%)
- Caribbean (12%)
- South America (11%)
Commenting on the figures Andrew Tully, at Retirement Advantage said: “We all dream of year round sunshine and an easier pace of life when thinking about retirement, and a number of us are hoping to enjoy that with plans to move abroad. Cheaper living costs and potentially cheaper property than the UK can be a strong draw, and you might well be attracted to living in your favourite holiday destination.”
He continued: “However, thinking that a holiday spot can also be your ideal retirement destination might be hit with flaws. Without the right planning, savings and advice, you can quickly get caught out by local tax laws, exchange rates and other financial arrangements, turning a retirement dream into a potential nightmare.”
“You might also get a nasty shock later in retirement when you find your UK state pension does not increase annually because the country you choose to retire to does not have a reciprocal agreement in place with the UK. As an example, if you retired to Canada ten years ago, your UK state pension would now be worth 41% less than if you had retired across the border in the USA. Or put another way, your pension would be worth £1762 more a year by simply choosing the US as a retirement destination rather than Canada.” (Source: Retirement Advantage)