The idea of swapping grey skies for sunshine has long appealed to British retirees, particularly as the rising cost of living continues to squeeze pension incomes.
Moving overseas could mean cheaper housing, lower everyday costs and a better quality of life.
But the financial picture is far more complicated, with tax, healthcare, exchange rates and pension rules all affecting whether you will actually be better off.
Brexit has also added fresh hurdles for those considering a move to Europe, while some popular destinations come with unexpected drawbacks, including frozen state pensions.
Here, The i Paper looks at the key questions anyone considering retiring abroad should ask before taking the plunge.
How much will it wipe off my state pension?
One of the biggest financial pitfalls catches many people by surprise.
Although you can generally claim your UK state pension abroad if you have built up enough national insurance contributions, not everyone continues receiving the annual increases pensioners in Britain enjoy.
Currently, the full new state pension is worth £241.30 per week (£12,547.60 per year), while the full maximum rate of the old basic system is £184.90 per week (£9,614.80 per year).
Whether your payments continue rising depends entirely on where you choose to live.
Sarah Coles, head of personal finance at AJ Bell, said: “Before you consider a move, you need to check the UK state pension rules for the country you are moving to.
“If you are moving to the European Economic Area, Switzerland, Gibraltar, or any country that has a specific agreement with the UK, it will be uprated each year.
“However, there are plenty of popular overseas destinations with no agreement, including Australia, Canada and New Zealand.”
If you retire to any of these destinations, your state pension will be frozen either at the rate you first claimed it or the date you moved overseas.
It means that every year your spending power will be eroded by inflation. Over a long retirement, this can have “a dramatic impact on your quality of life”, she highlighted.
Will I be better off?
Retiring overseas is often seen as a way to stretch retirement savings further – if you’re moving to a broadly cheaper country – but experts warn lower prices do not automatically mean a better financial outcome.
Mike Ambery, retirement expert at Standard Life, said: “Retiring abroad may offer a lower cost of living in some destinations, but whether someone is financially better off depends on their individual circumstances and the rules in the country they move to.
“Some countries offer attractively low cost of living, affordable healthcare and favourable tax arrangements, but there is no one-size-fits-all answer.”
He said exchange rates, local living costs, taxation and healthcare should all be considered before deciding whether a move makes financial sense.
Where is best to go?
The answer depends on whether your priority is lower living costs, a warmer climate or being closer to family.
Coles said Spain, Portugal, Malta, Cyprus, France, Italy and Greece remain among the most popular destinations, while Panama, Bulgaria, Mexico and Thailand can offer better value for those focused primarily on keeping costs down.
Fraser Kerr, head of ii advice at interactive investor, said: “In my experience, the most successful retirements abroad are rarely driven by a spreadsheet alone.
“The people who tend to be happiest are those who have a genuine connection with the country, want a different pace of life, enjoy the climate and outdoor lifestyle, or are pursuing a specific retirement goal.
“For many, retirement is ultimately about spending more time with family, friends and potentially grandchildren, and that can be just as important as any financial calculation.”
What about tax?
Tax is one of the most complicated aspects of retiring overseas.
Where your pension is taxed, whether inheritance tax applies and whether local succession laws override your wishes can all vary between countries.
Coles said: “You need to understand the tax on your pension, and what rate you will be charged. In some cases, the rules depend on the type of pension you have or the region you move to.”
She said retirees should also consider income tax, inheritance tax (IHT) and how local rules could affect the way assets are passed on after death.
Ambery added: “Tax is another important consideration. Depending on where you move, pension withdrawals may be subject to different tax rules and, in some cases, both the UK and the country of residence may have taxing rights.
“Double taxation agreements can help prevent people being taxed twice but understanding how these rules apply can be complicated and professional advice is often worthwhile.”
How easy is it?
Moving overseas involves far more than buying a property and booking a flight. Visa rules, residency requirements, healthcare access and financial planning all need careful consideration.
Coles said: “You need to consider the rules around relocating in retirement, and whether you meet the requirements for living somewhere else. You may need a certain level of investments, or to be able to guarantee enough income from your pension.”
Kerr said Brexit had added another layer of complexity through residency rights, visa requirements, healthcare arrangements and limits on how long Brits can stay in some countries.
He added that moving abroad does not have to be an all-or-nothing decision, with many retirees choosing to rent before buying or spend part of the year overseas before making a permanent move.
What if I want to come back?
Experts say anyone moving overseas should have an exit plan before they leave as returning to Britain can bring higher living costs, housing challenges and fresh tax considerations.
Coles said: “You need to fully understand the tax implications, and when they’re triggered. In some cases, UK taxes may apply even before you move. Consider the tax on overseas pensions and investments carefully – including IHT.
“It’s also worth looking into whether it’s worth transferring to a UK pension. If your state pension was frozen when you moved overseas, when you come back it will be uprated to the current level.”
Kerr said flexibility was key and suggested renting before buying, keeping a foothold in the UK or initially spending only part of the year abroad to make returning easier if circumstances change.
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