For many, the thought of retiring overseas has really just become a reality over the last few years due to a number of factors including :-

• easier access to information
• cheaper travel
• the expansion of the European Union, and unrestricted travel

 

In the past, those who retired overseas where seen to be fairly wealthy, with a substantial amount of money to fall back on.  This is no longer the case, with many overseas countries having lower living costs in relation to the UK, where for many there has been a major rise in the cost of living over the last few years.

Perhaps one element which has opened up the opportunity to retire to the masses has been the internet, and the relative ease with which users can gain access to information which may well have been out of their reach in years gone by.  Then there is also the massive reduction in travelling costs with many of the more mainstream countries now taking in cheap flights from the UK - this also means it is not as expensive to come back home to meet family and friends.

However, for those looking to retire to another European country, the relaxation of travel restrictions within the European Union (EU) has been another major plus point.  Under the new EU regulations each individual from within the EU is automatically entitled to the rights of the nationals in whichever country they move to.  This can often take away much of the worry and dilemma of retiring overseas, and what they may or may not be entitled to in their new “homeland”.

Many people who live in the UK cannot always understand why someone would even contemplate moving overseas to live, but there are many reasons for taking this action.  They may include :-

• The weather.  In older life, when you have served you time and worked for a good period of your years, it can often be nice to think of taking it easy and taking advantage of more time on your hands.  Many people choose to do things which they never had time for when they were working, see the world, and travel to sunshine countries.  The weather can also play a major part in lifting those older people who may be suffering from ill health.
• Tax.  As in many countries around the world, it seems that the more money you earn, or have saved, the more tax you are required to pay.   This is a growing reason for many people retiring abroad, the fact that even in retirement they seem to be penalised for saving for their old age, to enjoy their later years.  A move to a more liberal taxation regime can often leave that little extra funding to enjoy retirement that little bit more.
• Cost of property.  It is now common knowledge that a vast majority of the new entrants to the European Union have fairly undeveloped housing markets. While these markets are attracting the interest of property investors, due to improving local economies and EU grants designed to help these new entrants grow, in many areas it is possible to purchase large areas of accommodation for a relatively small sum when compared to the UK property market.  This has proved not only a good investment opportunity for many people retiring overseas, but the chance to own that large house they have always dreamed of.
• Family ties. As the European employment market has also opened up to fellow EU states,  we have seen a  major increase in the number of younger families moving overseas for employment opportunities.  Nice weather, lower costs of living and a general feel good factor after retirement have resulted in many parents looking to move overseas for family ties in their later years.

While there are many reasons why people may chose to retire overseas, there are also a number of issues which need to be considered before finalising any move. Among the more important factors to consider are :-

• Local language.  It is essential that you are able to communicate in the local dialect, and make the effort to mix with the locals.  While in some areas this may mean learning a whole new language, it seems that in many countries there are growing pockets of “little Britain” where many expats have decided to move overseas.  While these will prove very useful in the settling down period and day to day life, there should also be little problem with the language barrier! However, many retired couples believe that it is only correct that they attempt to learn the local language in due course, making that extra effort to integrate.
• Crime.  While the general crime rate in Europe is more under control than it has been for some time, there are still areas which should be avoided by non-locals.  The rate of crime in a particular area can very often effect the overall potential for the place and the type of inhabitants which it may attract.  For those looking to retire, the last thing they want is to move to an area with rising crime rates, a place where you may not feel safe at night.  Research the exact area you are considering before making a final decision.
• Property prices.  While we have covered property in the above section, it is always essential to take advice from local adviser when considering any overseas property purchase.  It may even pay to rent in the short term to ensure you have made the right decision, and also allow you more time to check out the properties for sale.
• Taxation.  For many retired couples, this may well have been one of the main reasons why they moved abroad in the first place.  It is vital to check out the taxation situation for locals, and new EU settlers - while there should be no difference, many new entrants have negotiated a “hand over” period in which tax rates may vary for locals and expats.
• Travel facilities.  Even though many people choose to retire overseas, the vast majority of them will always consider the UK home, and want to visit on a regular basis.  It is therefore essential that travel facilities are checked out prior to actually moving, to see how easy it is to maybe have the odd trip back to the UK.  In this day of low cost flights, there is every chance that there will be a cheap flight operator not far from you - where ever you are!

These are just a few of the aspects which spring to mind when people are considering retiring overseas .  It is not an easy decision to make, therefore it is essential that all aspects of the move are considered to give you the best chance of settling down in your new surroundings.  The last thing you want is a big tax bill, or high crime rate when you move to your dream destination!