Is retiring abroad still a popular option for people?

crv1963

We considered retiring abroad but on reflection we're not sure we want to make the move a permanent one, F-I-L moved to Tenerife 20+years ago in his early 50s with his wife. They absolutely love it, retain a UK property each and return to the UK for holidays.

We think we'll become what they term "Swallows"- fly away somewhere warm for 2-3 months in the UK winter and summer in the UK, given our wanderlust we may well give a motorhome serious consideration- the freedom to winter in warmer parts and tour sightseeing.

Linton

Our second home is a narrowboat which we bought when we retired.  The intention was to spend 3+ months/year cruising around the country.  Unfortunately we no longer have that amount of spare time!  However we have managed to visit most parts of the connected system including London, Birmingham, Manchester, Liverpool, Leeds, Cambridge, Bath, Guildford, Lincoln and Rivers Severn, Trent, & Thames and many other places.

DairyQueen

Linton said:

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.

Anecdotal evidence in support of the wise suggestion to keep your UK options open...

A widowed family member moved to an EU state with her then partner when in her late 50s. A few years later they split and she has lived there alone ever since. She returns to the UK for three months each year to stay with her children and, recently, in order to receive medical treatment (!).

FFwd 20 years...

Now in her late 70s, her health issues are such that she cannot continue living unsupported for much longer. She requires a companion to travel to-and-fro and increasingly relies on friends whilst away from her children. Our exit from the EU has further complicated her situation as (ahem) it would appear that she has never registered as domicile or resident in the EU country where she has lived for all of these years. Indeed, she has always used her child's UK home as her official address.

Her major asset is her home. If she can sell (big 'if') the proceeds will not buy anything remotely close to an equivalent in the UK. Indeed, the region in which her family is based is amongst the most costly of UK areas. She will be exchanging a rather lovely villa (sea view, pool, etc.) for a one-bedroom flat and the shock of much higher living costs.

Not an ideal outcome for anyone in their later years. Needless to say, she was so dazzled by the sea and sun that she failed to consider the consequences of ageing.

OH and I dabbled with the idea of retiring to France but decided that keeping a UK home would be a necessity to mitigate the above risk. The costs and practicalities of maintaining two homes deterred us. Plus there are many places in the British Isles that we wish to explore. We have therefore decided that rental will be our chosen route for most holidays. Unfortunately, Mr DQ isn't as enthusiastic as me about the merits of boats/barges/caravans/motorhomes/campers. I wish.

Crabby

@Stirfry I hope it's the Jungfrau, one of the best train rides I've ever done. Boredom is why we've got the van, today we climbed to the top of Gibraltar, tomorrow who knows?

Stirfry

Crabby, yes we are staying in Wengen, and the trains are always on time.

Crabby

One train we where on, from Lucerne to Interlaken, was a couple of minutes late and all the locals we're tutting.

Icantwait

I was targeting mainland Spain (North East) on the basis that the EU offered healthcare and various other benefits.  Then Brexit appeared.  My wife can legitimately get an Irish passport but I can't.  I'll wait until the dust settles then review the situation.  My wife was not keen on a full move but would rather keep a home in the UK and go back and forward.  That's an expensive option.  I'd rather rent out our house and move for 12+ months to try it out then decide.

nigelbb

Icantwait said:

I was targeting mainland Spain (North East) on the basis that the EU offered healthcare and various other benefits.  Then Brexit appeared.  My wife can legitimately get an Irish passport but I can't.  I'll wait until the dust settles then review the situation.  My wife was not keen on a full move but would rather keep a home in the UK and go back and forward.  That's an expensive option.  I'd rather rent out our house and move for 12+ months to try it out then decide.

Brits who are resident in the EU by 31st December 2020 are covered by the lifetime guarantees of the Withdrawal Agreement on residence, pensions, healthcare etc Basically you keep all the rights you had as an EU citizen except onward freedom of movement to another EU state & voting in local & European elections. If you wait until the dust settles you will miss out.

ratechaser

As the latest series of Death in Paradise draws to a close, I'm wistfully thinking of a retirement bolt hole in Barbados or Antigua, sadly I think that may be a bit far afield for Mrs RC, who while loving the caribbean as a holiday destination, would rather stay in Europe. Or more specifically, doesn't want to end up owning anything more than a couple of hours away on a plane.

So the bolt hole location is more likely to be Portugal (undecided on whether that will be a city house somewhere like Lagos, or a bigger villa with pool further into the country...), while keeping a base in our native Hertfordshire. And if we really feel like expanding, possibly a cottage in Devon/Cornwall as well. 3 places might be overkill but we'll see.

As for what counts as the 'permanent' location for retirement, that's always going to be flexible. But I've previously mentioned how attractive the Portugal tax incentives on pensions are for ex-pats, so depending on what that looks like in 10 years, it could be a significant factor - liquidate our pensions tax free and then do some serious estate planning...

And yes, I genuinely like Portugal by the way, it's not just tax tourism while I swig another pint of Carling to wash down my egg and chips in a dodgy Albufeira cafe...

One other option is a place in the mountains - e.g. Austria. Some quite cheap apartments springing up in established ski resorts that we already know well. And both Summer and Winter options there. But of course mountain walks and skiing will not be something I could do forever, much as I might want to...

NoMore

ratechaser said:

As for what counts as the 'permanent' location for retirement, that's always going to be flexible. But I've previously mentioned how attractive the Portugal tax incentives on pensions are for ex-pats, so depending on what that looks like in 10 years, it could be a significant factor - liquidate our pensions tax free and then do some serious estate planning...

https://www.portugalresident.com/portugal-to-start-taxing-foreign-pensions-under-nhr/ 
The tax regime is slowly changing in portugal, might not have that long where its still tax advantageous