19 August, 2014

By VIVA Team

Retiring abroad should not be daunting, but many Brits are put off the idea as they grow old

Most Britons who while young dream of retiring abroad are less likely to do so as they age, a recent study has found.

Retirement income specialist MGM conducted a poll of British workers and found that those approaching retirement age were increasingly less likely to want to move overseas, citing a greater awareness of the potential pitfalls that could await them…

“We find that people in their 30s when thinking of retirement are more eager to move abroad than people in their 60s,” said Paul Keeble, MGM’s spokesman. “This is why there is such a gap between the number of people who say they want to retire abroad and those who actually do.”

In MGM Advantage’s latest survey – which just last week identified Spain as the top retirement destination for Brits – more than 2,000 British adults were polled. In total, the retirement specialists estimate that six million adult Brits dream of retiring overseas, but barely ten per cent of that figure will actually go through with it.

“Spain is the top destination of choice, thanks to its combination of climate, familiarity through previous holidays, and relatively affordable property,” added Keeble. “France is also popular because of the lifestyle, and Thailand has crept into the list as many people like the country after holidaying there.”

The study comes just days after another report revealed that children are the least likely to suffer from the upheaval of a move overseas, proving that the earlier one moves, the better.

And while for some it may be difficult to retire early to Spain, acquainting oneself with the country’s culture, cuisine, climate and language early on will make the move appear less daunting when it actually arises.

There are pitfalls of course, but the negative impact of these can be lessened if Brits do their homework, said MGM’s Andrew Tully.

“Without the right planning, savings and advice, you can quickly get caught out by local tax laws, exchange rates and other financial arrangements,” Tully said. “You might 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.”

Fortunately for Brits hoping to retire in Spain, such an arrangement already exists, which perhaps explains why Spain is also the leading destination for Brits buying retirement property in Europe.