Recent statistical and survey information produced by the likes of the Institute for Public Policy Research show that the thought of retiring abroad for Britons is now more than a dream for most. I.e., there is evidence to suggest that a large percentage of the British population is actively pursuing their very own reality of living overseas once they hit retirement.
Driving factors are mainly fiscal, with a representative from Saga - ‘the online community for today’s over 50s’ - stating that it was likely that people would consider moving abroad more now that the cost of living is expected to increase (according to a report on MoneyNews.co.uk). We certainly concur with these opinions and findings and can add that recent correspondence from a fair few sagacious readers absolutely backs up the fact that money is getting tighter in the UK and as a result, a new life abroad beckons for increasing numbers of pre-retiree Brits.
The Institute for Public Policy Research has evidence to support estimations that by 2050, 3.3 million British pensioners will be living abroad. These individuals are more likely than ever to consider a move overseas now that property prices in the UK are so high compared to values of real estate in more climatically attractive destinations from Brazil to Venezuela. What’s more, a new fifty something demographic has been identified - this demographic has been given the acronym FRED which stands for ‘facing retirement earnings deficits’ - which suggests that possibly more now than at any other time before, people are seriously thinking about moving abroad purely for fiscal reasons.
Popular destinations are generally those with attractive climates because the British climate is notoriously depressingly wet, (as Brits we feel we’re at liberty to make this statement!), because the cost of living is generally lower when you have less need for fuel to heat your home, and because many health issues can be eased or alleviated when one lives in a warm climate.
In many overseas destinations popular with British retirees – from Spain to Cyprus, from Florida in the US– there are additional cost savings compared to the UK for most day to day essentials, whether that be units of electricity or food, water or the equivalent of council tax. The only thing we would suggest that Brits contemplating a move abroad be aware of is that those little extras that make you miss home less when living abroad such as an overseas SKY TV package or even British supermarket produce can push the cost of living right back up! So, if you move abroad and embrace the overseas lifestyle, you may well be financially significantly better off…but if you relocate and maintain a very British attitude to everything, you could fall foul of financial savings.
Shelter Off Shore
25th June 2008