More British People Looking to Retire Overseas

by Ray Clancy on March 3, 2015

A growing number of people in the UK aged over 50 are considering a new life abroad, according to a survey by one of the world’s largest independent financial advisory organisations.

DeVere Group’s latest poll shows that 59% of those surveyed have ‘seriously considered’, ‘are thinking about’, or ‘would be tempted’ to live overseas during retirement, up almost 10% compared with the same deVere poll last year.

uk-workersThe top five countries being considered as possible destinations for relocation in retirement are Spain, Australia, the United States, France, and Thailand.

The poll also reveals that financial factors are the main motivators for moving abroad. The combination of the UK’s burgeoning pensions crisis, the looming care crisis, the UK’s cost of living, high taxes, low interest rates, and the scrapping of some age related benefits are all cited by respondents.

Other reasons included standard of care for the elderly, quality of life, crime concerns and the weather and according to deVere Group chief executive, Nigel Green, Britain’s baby boomers believe that they might need to move overseas to maintain a comparable lifestyle throughout their retirement.

‘As such, more and more are contemplating quitting the UK and relocating to countries where they can expect a high quality of life and standard of living, and typically better weather, for a faction of the money,’ said Green.

‘There is also growing awareness of the financial pull factors amongst would-be British expatriates. Not only will expats, in most cases, benefit from lower costs of living and lower taxes, there are specific expat exclusive financial vehicles that can make them considerably better off than their contemporaries back in Britain,’ he added.

Amongst these tools are HMRC recognised Qualifying Recognised Overseas Pension Schemes (QROPS), an overseas pension which allow expats to mitigate the 55% liabilities of inheritance tax, to access flexible high return investments, have their pensions paid in the currency of their choice, and to secure 30% as a cash free lump sum, amongst other considerable benefits.

The firm also pointed out that whilst destinations such as Spain and Australia topped this survey of the over 50’s, a similar poll last year focusing on the under 40s, those who are typically looking to further their career, the top destinations included Abu Dhabi, Dubai, Hong Kong, Johannesburg, Shanghai and Tokyo.

 

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