Life in the sun may have its draw­backs

Midweek Visiter - - Age Concern -

IN 2017, the In­ter­na­tional Cur­rency Ex­change (ICE) un­der­took a study of the best places to re­tire abroad.

It found that the most com­mon rea­son for want­ing to re­tire over­seas is, un­sur­pris­ingly, bet­ter weather.

Some 76% of peo­ple listed this as a ma­jor rea­son.

It’s hardly sur­pris­ing given that there were just 1,432 hours of sun­shine recorded in the UK and av­er­age tem­per­a­tures of 9 de­grees (in 2016).

Money mat­ters came next on the list of pri­or­i­ties, with 74% of peo­ple men­tion­ing cheaper liv­ing ex­penses, and 68% say­ing they were at­tracted by bet­ter value for money on prop­erty.

The rest of the top five was rounded out by a slower pace of life and bet­ter health.

Fi­nan­cial is­sues, how­ever, can be a bar­rier to re­tir­ing abroad.

The state pen­sion is the core build­ing block of re­tire­ment in­come, but there can be a huge im­pact on this ben­e­fit when mov­ing over­seas.

If the coun­try peo­ple re­tire to has a re­cip­ro­cal agree­ment in place with the UK, the state pen­sion will be paid and in­crease each year as nor­mal.

This cur­rently cov­ers any coun­try in the Euro­pean Eco­nomic Area as well as other ma­jor coun­tries such as Amer­ica.

How­ever, Brexit could have an im­pact on these re­cip­ro­cal agree­ments.

Cur­rently if peo­ple move to an EU coun­try the UK state pen­sion au­to­mat­i­cally in­creases each year.

When we leave the EU these ar­range­ments will form part of the exit ne­go­ti­a­tions, and so the out­come is un­cer­tain.

There is no agree­ment with a num­ber of coun­tries in­clud­ing Aus­tralia New Zealand and Canada.

In these coun­tries, the state pen­sion is frozen for a UK cit­i­zen who moves there.

This can have a dra­matic ef­fect on the in­come paid. For ex­am­ple, some­body who re­tired to Canada in 2004 would in 2014 have been re­ceiv­ing a state pen­sion of £4,381 which is £1,822.60 less than the £6,203.60 they would have been get­ting had they re­tired just across the border to the US.

Where you re­tire to also has huge im­pli­ca­tions for in­her­i­tance. Dif­fer­ent places have dif­fer­ent in­her­i­tance tax rates and some coun­tries have a manda­tory in­her­i­tance system which can over­ride your will.

Health­care can also be a ma­jor is­sue as many coun­tries do not have free health­care.

Even if you are hale and hearty now, you never know what the fu­ture holds, so tak­ing out health in­sur­ance abroad is a sen­si­ble but po­ten­tially costly pre­cau­tion.

If you’re still de­ter­mined to en­joy a life in the sun, then the ICE study reveals the top 10 best re­tire­ment des­ti­na­tions as: 1. Tener­ife, 2. Lan­zarote 3. Por­tu­gal 4. Panama 5. Greece 6. Malta 7. Spain 8. France 9. United States of Amer­ica 10. Aus­tralia.

For most of us, a holiday is a bet­ter way of get­ting away from the Bri­tish weather for a while.

When you’re book­ing your holiday, don’t for­get that Age Con­cern Liverpool & Sefton sells travel in­sur­ance.

Our Travel In­sur­ance is open to ALL ages, and has a UK based cus­tomer ser­vice cen­tre and claims han­dling team.

Call us on 01704 542993 to get more in­for­ma­tion and a quote.

Los Cris­tianos in Tene­fife – one of the top re­tire­ment des­ti­na­tions

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