Is retiring abroad still a popular option for people?

lisyloo

Linton said:

ISTM the big problem with retiring abroad is that at some stage you will probably want to, or have to, return to the UK.  You do not want to be in frail in your 80's and having to organise and finance the move back especially if you have insufficient money.  The return should be part of your retirement planning.

What are you referring to (sorry not obvious to me). Do you mean for health care, or to be close to family when you need care/die?

lisyloo

I am thinking of France/Portugal/Malta although only after all our parents have passed on.
would look at the climate, housing, tax situation nearer the time.
i have friends in Portugal and Malta so would be looking to pick the brains of people who live there.

personally I’d be more adventurous but I don’t think OP would be up for it, so it could change of widowed 

Sunnylifeover50plan

My wife and I are a few months away from making the move to Spain. Not wishing to conform to the stereotype we have decided to buy a small terraced house on a golf course 15-20 minutes away from the coast We hope to start the buying process March and move over there July sometime so that we are not classed as Spanish tax residents this Spanish financial year.
 
We are early and mid 50's, our only child recently moved out of the family home and is reasonably settled work wise etc. For us it was about doing something different whilst we are young enough - we don't plan to work and planning suggests we should be okay for money from our pensions.

Our plan is not a plan without risk but for us we are comfortable doing what we are doing accepting the risks in our register - we've done our analysis and will take/ have taken appropriate professional advice where we've made assumptions or need to navigate things like the residency process. The transition period is a good a time as any to get over there before any new rules come in next year - we decided it was worth doing now.

We fancy a change whilst not being very far away if we need to travel back or family/ friends want to visit us.

[Deleted User]

NedS said:

steampowered said:

When thinking about Spain/Portugal, you have to bear in mind that the rights which people have to move and work in other European countries will reduce due to Brexit. 

It is actually pretty difficult to get a visa to move to most countries as a retired person. You generally would not get a visa to move to the UK from a non-EU country as a retired person unless you are married to a UK citizen or get an investment visa. Nearly all countries want immigrants to be young, fit, working, paying taxes and not using social security/healthcare.

Exactly the same applies to the US, Canada and Asian countries.

After the financial crisis, Portugal were crying out for retired people to settle there, as they realised those people are often wealthy (or at least have some wealth), and are going to spend it in the local communities in which they live. So much so, Portugal was offering tax breaks for pensioners whereby pension income was tax free, thus putting even more spending power in their pockets to spend in the local community in which they live. I'm not sure how Brexit has affected this situation, but I certainly remember working out on the back of an envelope how much tax I would save if I could access my pension savings tax free in retirement - probably enough to pay for a property in Portugal.

Might want to check the Portuguese news, the ruling Socialist party is wanting to end the 0% NHR scheme this year and raise it to 10% on Pension Income. Cyprus has 5% on Pension Income btw

Linton

lisyloo said:

Linton said:

ISTM the big problem with retiring abroad is that at some stage you will probably want to, or have to, return to the UK.  You do not want to be in frail in your 80's and having to organise and finance the move back especially if you have insufficient money.  The return should be part of your retirement planning.

What are you referring to (sorry not obvious to me). Do you mean for health care, or to be close to family when you need care/die?

There are many reasons why people may want to move back to the UK when they get to their 80s....

1) health, mental and physical

2) availability of support services

3) keep in touch with children/support from children

4) loss of ability to drive - desirable foreign retirement properties are often out in the countryside

5) death of spouse

6) homesickness

7) Isolation - There is the problem that many ex-pats dont seem to bother to learn the local language apart from the basics and spend most of their time with their other ex-pat friends.  Over time these friends will die or move back to the UK.

badmemory

8) Dementia - even if you learn the language the last thing you learn tends to be the first you forget.

dwsjarcmcd

We thought of this a few years ago and downsized and bought a beautiful apartment in the South of France with a long-term plan of moving there when we retired (now!).  We soon found out several issues;
1. The climate in the South of France is great in the summer but not that much better than home outside of that
2. We got bored of the place!
3. The admin of tax/insurance/owner's committees was a total pain
4. A massive amount of capital is tied up in the apartment, particularly if you are also retaining a base in the UK
We sold it after 5 year, which were very enjoyable but we're pleased we did and we were lucky to get out breaking even.  I would much prefer to go to different places, rent for a few months or just go on multiple holidays, which is exactly what we are doing. 
I think the moral is not to jump into anything and don't choose a place because it's cheap to live (the OP quoted South Africa, we are just back from there, great place for a holiday but not to live, way too risky) and know what your getting into. 

WannabeEdouard

I have ideas of long winter breaks when i retire. I hear people "going away for the British winter" and wondered how much to budget for this .  Say 2 months in the sun over JAN/FEB  i guess its how long is a piece of string type question.  Just no idea how costly it would be. 

Parking_Trouble

I wouldn't give up a base in the UK. 
A second home has been a long term dream for us but in reality it doesn't make practical and economic sense. Even a plan to move out of London has been shelved for the foreseeable future. 
Far better to stay put and have great holidays. So many places to visit in the UK and abroad. 

Stirfry

We have just bought a place in Cornwall. We plan to let it out in the six weeks holidays to cover costs. We are planning on spending a few weeks at a time when the other half finally retires. As someone previously mentioned it is an illiquid asset, but we got bored with sun holidays. We are in Switzerland taking in the scenery as I sit typing this. Cannot afford to buy somewhere here though. Must dash got a train to catch up the Mountain.