Five ways to a sun-kissed retirement in Spain

Life’s a beach for retirees who plan their move to Spain carefully.

The dream of retiring to Spain is made a reality by thousands of Brits every year. Often, the hardest part of making the move is convincing yourself that you can, that you deserve to, and that you won’t regret your decision.

But even when you have decided that a Spanish retirement ticks all the right boxes for you, there are still a few things that you have to do to ensure that your twilight years are as enjoyable, comfortable and relaxing as possible…

1. Selling up, shipping out

Perhaps the biggest driver enabling Brits to retire to Spain is the ability of many to make a tidy profit on their UK property when selling it, and then securing a far cheaper home in Spain.

This is the ideal scenario, but even if you are lucky enough to be able to afford to do that, it makes sense to maintain a base in the UK – perhaps just a small flat that you can let out – in case you ever do decide to return at some point.

If that option is not financially feasible, then it might make sense to co-invest in a Spanish property with a family member who can part-own your new home and offer a place to live when you visit the UK or if you ever decide to move back.

A short-term mortgage in Spain might prove to be a great option for you.

2. Pre-retirement mortgages

While it is more difficult to acquire a mortgage when you are approaching retirement age, it is possible – particularly in Spain – so do not discount this option as a possibility if you are unable to finance a purchase outright.

By getting a mortgage in Spain you guard against currency fluctuations and can often secure attractive, low fixed rate deals, provided – of course – that you have a decent deposit.

As ever, it pays to seek out quality, independent financial advice to ensure that you are properly informed of the laws and your options.

3. Guarding against currency risk

The current strength of the pound against the euro makes buying a property in Spain an extremely attractive option right now. But nobody really knows how the two currencies will measure up to one another in four months, let alone four years.

Despite UK pensioners living in Spain enjoying a 10 per cent pay rise in the past 12 months, there have been years where their UK-based income was actually much lower once exposed to the whims of the currency exchange market.

A good way to protect against these fluctuations is to use a specialised currency broker that can offer you protected exchange rates and handy advice on making money transfers.

4. Accessing your UK pension

The UK’s pension climate is forever febrile, so it pays to keep up to speed with what is happening. From next month, for example, the government is set to make it easier for those who have paid into defined contribution schemes to access their pension from the age of 55. Good in principle, but if you intend to release a lump sum to transfer overseas you could be subjected to hefty charges.

Fees can stack up when dealing with two currencies in two countries, so try to minimise them as much as possible.

The UK and Spain have an agreement under the Qualifying Recognised Overseas Pension Schemes (Qrops), which allows Brits to move their pension to Spain, whereby the retiree receives their money directly into their Spanish bank account, paid in euros.

5. Relax and enjoy

Those first four steps are actually all rather straightforward. All you need is a little bit of preparation, planning and patience, and then you can put your feet up and relax at a fine decision made.

Because life as a retiree in Spain is superb. With a steady income and secure home, you are free to enjoy one of the highest standards of living on the planet – namely, that of a relaxed person living near to the Mediterranean, enjoying the fantastic climate, stunning scenery, that famously healthy diet, wonderful local wines and a culture that is as Brit Abroad or Classically Andalusian as you could ever wish for.