Just over forty percent of Britons would like to retire within the United Kingdom, data from a new survey by Aon Consulting has revealed. Over half of those consulted would prefer to retire outside of the UK, with high-temperature countries such as Spain and Greece winning the popular vote. A smaller number of Britons have also demonstrated interest in retiring to the South Pacific.
Britain’s retirement choices are at odds with those demonstrated in other European countries. Over eighty percent of Spanish workers plan to retire within their own country, claiming that they will be cared for within their own borders. Weather and liveability are the driving factors behind retirement locations, with the majority of Britons opting to live outside of temperate climate zones.
Not surprisingly, Spain was the top choice for British expat retirees, who claimed that the country’s combination of warm weather and vibrant culture make it an ideal place to live. The United States took second place on the list, with Britons opting to live in high-temperature zones such as Florida and California for their retirement years, eschewing other options in temperate states.
While international retirements are a popular desire amongst working Britons, they come with risks that often don’t factor into traditional retirement planning. Due to the variable value of our currency, the cost of living overseas can often balloon after expatriate retirees have left the country. Expats in countries such as Spain and France may have lost up to 30% of their spending power this year.
Other inconveniences such as excess taxation and raised insurance costs can also put a damper on a tropical retirement. While thousands of Britons leave the country every year for sunnier pastures, it appears that many are doing so without giving proper thought to their finances. Enjoy the sun, but be sure to do so with a stable bank balance.