Do you dream of retiring abroad?
Many of us spend our working lives fantasising about retiring to a tropical paradise but would the reality live up to your expectations?
According to figures from NatWest, 89 per cent of British expatriates believe they enjoy a better quality of life. Hopefully you will fall into this category.
However, caution is essential with such a huge life change at any age. Before you take the plunge, make sure you have considered these six factors.
Retirement isn’t one long holiday
You might have loved Singapore during a two-week stay but day-to-day life may be a bit more mundane.
Unless you’ve managed to amass a small fortune to retire on, you won’t be able to live the holiday lifestyle every day.
Before you decide to move, go on a few reconnaissance missions – perhaps when you’re looking at properties. Try to get a sense of dull but necessary tasks such as going to the supermarket. Remember, the sun probably won’t shine every day either.
Should you sell your UK property?
This is a tricky issue for emigrants. If you sell the property, you could have a comfortable nest egg for your new life.
Alternatively renting out your home could provide you with a reliable monthly income. Further, having a foothold in the UK could be useful if things don’t work out in your new venture.
Hidden expenses
As well as your own flights, you may have to pay thousands to move your possessions to another country. Is it really worth paying to take heavy objects such as furniture?
You should also check out the tax system in your desired destination and consider the implications of the exchange rate on your pension pot.
Experts Need Help Moving Abroad suggest you might find a better deal on your currency through a specialist broker rather than a high street bank.
Living costs
Every expense you have in the UK will probably have an equivalent overseas. It makes sense to research the cost of food, clothing, entertainment and even insurance in your potential new home.
No matter how much you love your new land, you will probably get homesick from time-to-time. When drawing up your budget, factor in the cost of flights back to the UK to see friends and family.
Holiday romance gone sour
You may be moving abroad with a spouse or long-term partner. Even if you’ve been a couple for half a century, emigrating could put an unexpected strain on your relationship.
While you may have had separate social lives in the UK, you could suddenly find yourselves alone together almost constantly and forever arguing.
To find a new social circle you may have to learn the language. Are you really prepared for such a commitment in retirement?
Healthcare
People can get ill at any age but you’re more likely to visit a doctor at 70 than 20.
Before moving abroad, check the healthcare costs in the new country. If you’re moving to the US, for example, you’ll almost certainly need to take out private health cover.
We don’t want to end on a pessimistic note. If you’ve considered all these factors and still want to leave the UK behind, bon voyage.
**This material is for information purposes only and should not be considered financial advice. We strongly encourage our readers not to rely solely on this content, but to seek independent advice when making financial decisions.**
Mortgages - YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE. FAILING TO ADHERE TO REPAYMENT TERMS MAY RESULT IN PENALTY CHARGES AND AFFECT YOUR CREDIT HISTORY. Rates may depend on your individual circumstances
Compare pensions
Fill in our quick form to get a quote
Compare mortgages
Fill in our quick form to get a quote
