Retiring Abroad?
If the infamous British weather is making you consider an overseas retirement, then who can blame you! Maybe you are thinking of retiring abroad to be nearer to your family or you are simply looking for a change in lifestyle. Regardless of your reasons, the success of your move will be largely based upon the quality of your research and planning prior to making the move.
Whilst retiring abroad can be very desirable and for many people extremely enjoyable, it is important that you look at the move from all angles and consider any possible disadvantages as well as the obvious advantages and benefits.
The decision to spend your golden years abroad may be a good one whilst the pound is strong, but at times where the pound is weak and the local exchange rate is poor, you may not be maximising your nest egg quite so much as you has once hoped.
Healthylife editor Claire Reed considers some of the issues that you may want to contemplate before you make your all-important decision.
Consider the possible advantages and disadvantages
Before you get wrapped-up in deciding just which country you would like to retire to, it is a good idea to consider the day-to-day aspects of life which you may find have considerably different prospects if you were living abroad. Take a look at the following questions you may wish to consider:
- What are your reasons for moving abroad? Do you want it to be a permanent move or simply to spend part of the year i.e. winter abroad?
- If you chose to retire abroad, would you want to make regular trips back to the UK, whether it is for friends and family visits or medical appointments?
- Can you afford to move abroad? Do you have enough money to buy a property and enjoy a quality lifestyle? Will you have any guaranteed income once abroad? What will happen to the benefits you are entitled to whilst living in the UK?
- Do you know what the general costs of living are? Have you considered how the local exchange rate may affect the money you have to spend?
- If you are planning to retire with your spouse or partner, are you both happy with the decision? How will you get along together if you are away from your current friends and family? Would you be able to cope in the unfortunate event of a death or a serious illness of the other?
- Will living away from family and friends be something that you can deal with?
Many people who are looking to retire abroad know which country they would choose to move to, whether it is to be nearer to friends and family or because of the warmer climate. However, if you are simply looking for a lifestyle change and have a number of different places in mind then there are various things that you should consider to ensure that you make the right decision.
Can you live in a different climate? If you are going to make the move to live in a different country, it is a good idea to visit at different times of the year to ensure that you not only enjoy the lifestyle but can also cope with the climate all year long. Whilst warmer weather can be enjoyable whilst on holiday, as a resident, hot weather can be difficult to live with, especially if you are not used to it.
What about a trial period? Once you have considered the advantages and disadvantages of retiring to the country of your choice it may be worthwhile staying their on a trial basis and sampling day-to-day life as if you were living there. This way, you do not have to give up your home before knowing if you are actually going to be happy with your decision. Some countries are very seasonal and you need to ensure that the out of season lifestyle and weather is desirable.
Do you know the language? Settling into life in a different country can be much easier if you have a good understanding of the local language. You will find that all aspects of daily life including access to services and local activities will be much easier if you are able to communicate with the local community. If you don't have at least some understanding of the language, you may feel somewhat isolated.
How will living abroad affect your income? Living in the country of your choice for a trial period can help you to calculate how much money you will actually need to live there. It is worth considering the money or savings that you have now, how much of it you will have when you move and whether or not the income you have now will stop if you live abroad. It is crucial that you have a long-term financial plan to ensure that your retirement abroad is sustainable. Don't forget that inflation and exchange rates will affect your income, and the benefits that you may currently get in the UK may no longer be available once you are living abroad.
Will you still get your benefits and pension? Your entitlement to benefits such as retirement pension, housing benefit, carer's allowance and incapacity benefit should be confirmed before you make the decision to retire abroad as a lack of these could seriously reduce your income and ultimately your ability to afford the move overseas. In most circumstances, if you are entitled to a state pension, this can continue even if you live in any other country in the world. Nonetheless, you should check your personal circumstances to avoid disappointment.
What is the property market like? You must ensure that you fully understand the property market of your chosen country to ensure that you make informed decisions when it comes to buying your property. You need to be sure of the access rights and boundaries to your property and building deeds should be clear. Also, try to find out local planning permission terms as these can be very different abroad - you do not want a later dispute.
Will you be entitled to health care? The UK does have health care agreements with a number of different countries, particularly those in the EU, which can contribute towards treatments abroad. However, it is important to check whether you are entitled to health care as a resident and not just a visitor. Pensioners from the UK who live within another EU country are normally entitled to the same treatment as the country's nationals. Some countries to not have the equivalent of the NHS and rely on private health care, so it is important that you find out what health care is available to you.
Will you qualify for residency? So long as you are a UK national, you are normally entitled to live within an EU country. However, if you are considering moving to any other country, you need to contact the embassy of that country. Some countries have certain criteria that you need to fulfil in order to gain residential status such as minimum income levels or a particular trade.