Malta and Portugal also rank high among retirees, added the financial website, thanks to their proximity to the UK as well as “balmy climates, access to healthcare and low crime levels.”
What to consider when retiring abroad
One of the biggest factors to consider when retiring abroad is your state pension.
Expats are denied the “triple lock uplift” on state pensions, said The Telegraph, if they live in around 100 countries including much of the European Union, Canada, Australia and New Zealand.
This means state pension payments are frozen at the rate first received and the financial impact can be “increasingly severe”, said Rathbones, meaning people miss out on around £77,000 over 20 years.
Depending on where you take money from, you need to consider “inevitable fluctuations” in exchange rates, said Experts for Expats, as you need to be sure your income will continue to support you, even if your disposable income drops. The “default position”, may be to sell your home and move abroad, but consider whether you may decide to return to the UK and how hard and expensive it may be to get back onto the property ladder.
It is worth testing out an area first either by renting or just having a holiday, said Aegon, and working out what stage of retirement it is best for. This way you can find out what daily life actually feels like “before you redesign it entirely”.
