If people from brickies to biotech researchers are considering moving to more hospitable economies, where are they looking? A new report by virtual UK number provider Xpatfone, provided their latest findings of the top 10 most searched countries.
Why Retire Abroad?
Amidst rumours of tax hikes and potential changes to the UK state pension system, a growing number of British citizens, including contractors and freelancers, are exploring the option of retiring abroad. The appeal of warmer climates, lower living costs, and new cultural experiences is prompting many to consider this life-changing move.
The most common reasons Brits cite for retiring abroad are warmer weather and a lower cost of living. Traditionally, retirement marked the time for such a move. However, with the new Labour government’s proposed tax policies, including the possibility of means-testing state pensions, more individuals are looking to relocate sooner rather than later.
Means-testing state pensions seemed a no-go area because most contributions are voluntary meaning HMRC would have to return payments to those suddenly not eligible.
That said, one senior adviser has urged the Government to reduce the entitlement in order to save money, the Telegraph reported. However, experts have warned that the policy would be “disastrous” for pensioners and undermine the financial bedrock of retirement.
While the idea of means-testing state pensions is controversial and experts warn it could be disastrous for pensioners, the uncertainty is enough to prompt many to look at alternatives.
Where Are Brits Retiring?
A recent report by Xpatfone reveals the top 10 countries Brits are searching for retirement. These destinations offer various benefits, from affordable living to stunning natural scenery.
The most popular reasons for Brits consider moving abroad is warmer, sunnier weather and a lower cost of living. Typically, people would wait to move abroad for retirement, but with rumours of multiple tax raids by the new Labour government, including means-testing state pensions, more UK residents are exploring their options now rather than later.
Among the findings, Thailand emerged as the most popular destination, capturing the imagination of UK retirees with its affordable living, tropical climate, and vibrant culture.
Here are the top 10 in a bit more detail to understand some of the key advantages of retiring abroad vs the UK:
1. THAILAND
COST OF LIVING:
Meal for 2 at a mid-range restaurant: £19.43 (68% cheaper than the UK)
Domestic Beer (0.5 litre draught) – in restaurant: £1.55 (66% cheaper than the UK)
Housing: Rent for a 3-bedroom apartment in the city centre: £853.32 (52% cheaper than the UK)
Utilities: Basic utilities for an 85m² apartment: £58.15 (76% cheaper than the UK)
SUNSHINE: 2,625 hours per year (57% more sunshine than the UK)
Thailand’s appeal lies in its low cost of living, tropical weather, and friendly locals. The country offers a unique mix of bustling city life and tranquil beach towns, providing retirees with diverse lifestyle options. With everyday expenses such as food, housing, and utilities significantly lower than in the UK, Thailand is increasingly being seen as an ideal destination for those seeking both adventure and affordability in their retirement years.
2. SPAIN
COST OF LIVING:
Meal for 2 at a mid-range restaurant: £43.05 (28% cheaper than the UK)
Domestic Beer (0.5 litre draught) – in restaurant: £2.58 (43% cheaper than the UK)
Housing: Rent for a 3-bedroom apartment in the city centre: £1,328.39 (25% cheaper than the UK)
Utilities: Basic utilities for an 85m² apartment: £115.90 (53% cheaper than the UK)
SUNSHINE: 2,835 hours per year (69% more sunshine than the UK)
Spain remains a top choice for retirees, thanks to its warm climate, affordable cost of living, and vibrant expat communities. The country offers diverse cultural experiences, and beautiful landscapes, from sunny beaches to picturesque villages.
3. PORTUGAL
COST OF LIVING:
Meal for 2 at a mid-range restaurant: £34.26 (43% cheaper than the UK)
Domestic Beer (0.5 litre draught) – in restaurant: £2.14 (52% cheaper than the UK)
Housing: Rent for a 3-bedroom apartment in the city centre: £1,429.18 (19% cheaper than the UK)
Utilities: Basic utilities for an 85m² apartment: £99.89 (59% cheaper than the UK)
SUNSHINE: 2,810 hours per year (68% more sunshine than the UK)
Portugal is known for its mild climate, beautiful coastline, and rich cultural heritage. The country offers a high quality of life at a lower cost, with affordable dining, housing, and utilities.
4. NEW ZEALAND
AVERAGE MONTHLY SEARCHES: 260 (YoY change +53%)
COST OF LIVING:
Meal for 2 at a mid-range restaurant: £56.71 (5% cheaper than the UK)
Domestic Beer (0.5 litre draught) – in restaurant: £4.73 (5% more expensive than the UK)
Housing: Rent for a 3-bedroom apartment in the city centre: £1,412.89 (20% cheaper than the UK)
Utilities: Basic utilities for an 85m² apartment: £108.86 (56% cheaper than the UK)
SUNSHINE: 2,060 hours (23% more sunshine than the UK)
New Zealand is favoured for its stunning natural scenery, outdoor lifestyle, and friendly communities. It offers a relaxed pace of life, with plenty of opportunities for outdoor activities like hiking and boating. The cost of living is generally lower than in the UK, making it a desirable destination for retirees.
5. AUSTRALIA
COST OF LIVING:
Meal for 2 at a mid-range restaurant: £62.01 (3% more expensive than the UK)
Domestic Beer (0.5 litre draught) – in restaurant: £5.68 (26% more expensive than the UK)
Housing: Rent for a 3-bedroom apartment in the city centre: £1,869.12 (6% more expensive than the UK)
Utilities: Basic utilities for an 85m² apartment: £157.11 (36% cheaper than the UK)
SUNSHINE: 2,815 hours (68% more sunshine than the UK)
Australia attracts retirees with its excellent quality of life, modern infrastructure, and stunning natural beauty. While the cost of living can be higher in certain cities, the outdoor lifestyle, and English-speaking environment are major draws. Retirees enjoy the diverse landscapes, from beaches to the outback.
6. FRANCE
COST OF LIVING:
Meal for 2 at a mid-range restaurant: £51.39 (14% cheaper than the UK)
Domestic Beer (0.5 litre draught) – in restaurant: £5.14 (14% more expensive than the UK)
Housing: Rent for a 3-bedroom apartment in the city centre: £1,212.63 (31% cheaper than the UK)
Utilities: Basic utilities for an 85m² apartment: £156.96 (36% cheaper than the UK)
SUNSHINE: 1,660 hours (1% less sunshine than the UK)
France offers retirees a blend of cultural richness, beautiful landscapes, and a slower pace of life. With its world-renowned cuisine, historic cities, and charming countryside, France is a dream destination for many. The cost of living is lower in many regions compared to the UK, making it an appealing choice for those seeking a culturally enriching retirement.
7. ITALY
COST OF LIVING:
Meal for 2 at a mid-range restaurant: £51.39 (14% cheaper than the UK)
Domestic Beer (0.5 litre draught) – in restaurant: £4.28 (5% cheaper than the UK)
Housing: Rent for a 3-bedroom apartment in the city centre: £1,141.21 (35% cheaper than the UK)
Utilities: Basic utilities for an 85m² apartment: £170.21 (31% cheaper than the UK)
SUNSHINE: 2,615 hours (56% more sunshine than the UK)
Italy offers a rich cultural experience, with its historic cities, stunning countryside, and world-class cuisine. Retirees appreciate the country’s slower pace of life, diverse regions, and affordable living costs, particularly in housing. Italy is a popular choice for those looking to enjoy their retirement in a culturally vibrant and scenic setting.
8. MALAYSIA
COST OF LIVING:
Meal for 2 at a mid-range restaurant: £17.61 (71% cheaper than the UK)
Domestic Beer (0.5 litre draught) – in restaurant: £2.77 (38% cheaper than the UK)
Housing: Rent for a 3-bedroom apartment in the city centre: £519.82 (71% cheaper than the UK)
Utilities: Basic utilities for an 85m² apartment: £38.52 (84% cheaper than the UK)
SUNSHINE: 2,220 hours (33% more sunshine than the UK)
Malaysia’s low cost of living, tropical climate, and modern amenities make it an attractive retirement destination. The country offers a mix of urban and natural attractions, from bustling cities to tranquil beaches. Retirees appreciate the affordable housing and utilities, as well as the diverse culture and cuisine.
9. GREECE
AVERAGE MONTHLY SEARCHES: 170 (YoY change +21%)
COST OF LIVING:
Meal for 2 at a mid-range restaurant: £42.83 (29% cheaper than the UK)
Domestic Beer (0.5 litre draught) – in restaurant: £3.85 (14% cheaper than the UK)
Housing: Rent for a 3-bedroom apartment in the city centre: £709.54 (60% cheaper than the UK)
Utilities: Basic utilities for an 85m² apartment: £183.84 (25% cheaper than the UK)
SUNSHINE: 2,775 hours (66% more sunshine than the UK)
Greece is renowned for its Mediterranean climate, historic sites, and affordable cost of living. Retirees are drawn to its laid-back lifestyle, beautiful islands, and welcoming local communities. The cost of housing and dining is significantly lower than in the UK, and the country’s abundant sunshine only adds to its appeal.
10. CANADA
AVERAGE MONTHLY SEARCHES: 140 (YoY change +55%)
COST OF LIVING:
Meal for 2 at a mid-range restaurant: £57.09 (5% cheaper than the UK)
Domestic Beer (0.5 litre draught) – in restaurant: £4.57 (2% more expensive than the UK)
Housing: Rent for a 3-bedroom apartment in the city centre: £1,738.70 (2% cheaper than the UK)
Utilities: Basic utilities for an 85m² apartment: £118.22 (52% cheaper than the UK)
SUNSHINE: 2,085 hours (24% more sunshine than the UK)
Canada is known for its high quality of life and beautiful landscapes. While the cost of living can be higher in major cities, the country offers a safe and stable environment for retirees. Canada’s outdoor lifestyle, friendly communities, and English-speaking environment are major draws, particularly for those seeking an active and fulfilling retirement.
Careful planning
Families across the UK and even those overseas with assets in Britain need to urgently consider ways to mitigate the potential impacts of the Chancellor’s and Prime Minister’s refusal to rule out capital gains, inheritance, and pension tax hikes in the upcoming budget, according to Nigel Green, the CEO and Founder of deVere Group, a financial advisory and asset manager.
“The warning signs are unmistakable: a painful adjustment is on the way, and families across Britain, and those overseas with assets in the UK, are facing tax hikes which could significantly hit their wealth,” said Green.
He continued: “Capital gains tax (CGT), inheritance tax (IHT), and pension taxes are being seen by the government as low-hanging fruit—quick and effective means to generate revenue.
“However, this focus puts significant pressure on many middle-class families, as well as investors, and high-net-worth individuals, who will suddenly find themselves shouldering a heavier tax burden.
“The impact, we believe, will prompt a scramble to review financial portfolios and implement strategies to protect assets before the new measures take effect.”
Green warns families not to wait until the Budget is announced to consider financial planning. He suggests considering “tax-efficient investment vehicles, rebalancing portfolios, and potentially realizing gains under the current CGT rates before any changes are implemented, for example.”
“Popular destinations such as Spain, Italy, Switzerland, Malta, Dubai, and Singapore are seeing increased interest, thanks to their lower tax rates and sophisticated financial planning strategies,” said Green.
Nick Browne, Co-Founder of Xpatfone said the rise in searches for retirement abroad highlights “a trend among UK residents seeking more affordable, higher-quality lifestyles.”
However, moving abroad takes careful planning to secure employment or remote working options with your current employer. Opening a bank account, social security and new contracts, such as those for mobile phones, can be time-consuming. With the onset of digital nomads new products are being developed.
Browne said, “At Xpatfone, we offer affordable and reliable communication solutions tailored for expats, allowing retirees to keep a UK mobile phone number. This helps those wanting to stay connected with family and friends back home as well as those needing to maintain UK bank accounts, ensuring they can stay connected and manage their finances seamlessly while enjoying life abroad.”