Retiring Abroad, options?

crumpet_man

How much is index linked state pension worth?  Does it increase by a couple of hundred pounds each year?  Trying to work out if it's that much of a benefit versus living somewhere cheap.

MalMonroe

Ganga said:

sheslookinhot said:

Steve182 said:

You've not said what passport(s) you hold. Not all countries will welcome you. If you have a British passport you should consider that we've now left the EU and the rules have changed!

I'm OK, I'm married to an EU citizen so I could probably just follow my wife to most countries in Europe if I chose.

My parents next door neighbour (who voted leave incidentally) bought a house in Spain last year with the intention of retiring there. He was about to exchange contracts for his UK house sale when his plans were scuppered by the brexit deal which does not favour immigration between UK and Europe in either direction so he cancelled the sale and will now retire in the UK.

It appears he never considered leaving the EU may affect his retirement plans when he decided to vote for it.

I wonder how many people that have had there employment or/and retirement plans destroyed were duped into voting leave by empty promises.

I do not want to turn this into a political debate BUT wonder if we would have done as well with the Covid vaccine program if we had voted to stay .

I'd like it placed on the record (any record, I'm not fussy which one) that I DID vote to stay. 

MalMonroe

Johnny_Doe said:

Afternoon all,

For many years I have wanted to escape the UK (various reasons I'd rather not go into) and retire abroad where I get more "bang for my buck" and can retire earlier on less of a pension. (I'm 49 looking to retire at 55, if not sooner)

I have checked many countries, including, US/Canada/EU inc France, Sweden, Spain/Philippines/Vietnam/Thailand but there appears to be no option that fits all the criteria! I'm can compromise on the weather (especially Canada as I can travel across to the US for a few months of the year) but no index linking SP is a no go (unless I can find a property at least £100k less to make up for the loss of pension earnings..?

Main Criteria:

1. Index linked state pension
2. Good healthcare
3. Cheap housing (Canada and France have some real bargains!)
4. Generally a better cost of living than the UK..
5. English speaking ideally but can compromise (ie France)

Brexit has produced a "curveball" in that I'm not sure where index linking SP will end up and cant find much info on this online?

US is SP index linked but almost impossible to retire to unless you invest £1 million dollars in a local business!! Where's the "special relationship??

Canada would have been perfect but they don't support SP index linking!

Philippines seems to fit most criteria (supports SP index linking) but I have concerns over healthcare outside Manila.. many speak English so that's good.. and cost of living is good.. but my overall gut feeling isn't quite there as some areas are a bit 3rd world, same with Vietnam.. Thailand doesn't index link either..

Options seems to be running out for Brits retiring abroad!

Any advice greatly appreciated! TIA

Retiring to some of the countries you mention is nigh on impossible. The US and Canada, for example. It's a shame but you can't just decide to move there and then go because there's an immigration process to go through.

And for Thailand, you have to prove that you can afford to live there - my friend who married a Thai lady a few years ago now lives there and every year he has to prove that his income is stable and he can still afford to live there. Healthcare isn't as good as it is here and you have to pay through the nose for it. 

I have friends living in Toronto and Vancouver and neither place has cheap housing. Unless you want to live in some of the less desirable places, of course. Vancouver has the best weather. 

You also have to consider the lifestyles of some of the places you mention. 

In my younger days, I emigrated twice. But twice I returned to the UK. One is never so patriotic as when one is living in another country. And that saying about the other person's grass always being greener? True.

QrizB

crumpet_man said:

How much is index linked state pension worth?  Does it increase by a couple of hundred pounds each year?  Trying to work out if it's that much of a benefit versus living somewhere cheap.

That depends on inflation. At 2% pa, after 10 years your £10000 pension would become £12190. If inflation was instead 5%, after 10 years your £10000 pension would become £16290.

Steve182

Ganga said:

sheslookinhot said:

Steve182 said:

You've not said what passport(s) you hold. Not all countries will welcome you. If you have a British passport you should consider that we've now left the EU and the rules have changed!

I'm OK, I'm married to an EU citizen so I could probably just follow my wife to most countries in Europe if I chose.

My parents next door neighbour (who voted leave incidentally) bought a house in Spain last year with the intention of retiring there. He was about to exchange contracts for his UK house sale when his plans were scuppered by the brexit deal which does not favour immigration between UK and Europe in either direction so he cancelled the sale and will now retire in the UK.

It appears he never considered leaving the EU may affect his retirement plans when he decided to vote for it.

I wonder how many people that have had there employment or/and retirement plans destroyed were duped into voting leave by empty promises.

I do not want to turn this into a political debate BUT wonder if we would have done as well with the Covid vaccine program if we had voted to stay .

I voted remain, but I certainly accept there are also benefits to leaving.

Freedom to make our own Covid vaccination plans, and do a much better job of it than our friends in the EU was certainly one of those benefits.

Loss of freedom for any UK citizen to work or retire in any EU country was definitely not.

nigelbb

It doesn't have to be a binary choice of UK or somewhere abroad. I lived & worked in France for 15 years. I never thought that I would return to live & work in the UK until I did. I still work part time in the UK but live the other half of my time in France. In about 3 years I will give up work & liquidate the SIPP that I am stuffing with all available spare cash from my earnings. I will pay 7.5% income tax & the money liberated will pay off my UK mortgage. My house in France is already paid for (house prices in much of France are unimaginably low compared to the UK eg €50K for a cottage which would cost £300K in South East Englands

The pandemic has made travel difficult over the last 15 months but the end is in sight. Maintaining a house in UK & France gives you the best of both worlds. You can to a degree to your advantage choose where you are tax resident & travelling from one residence to the other can be easily achieved the same day.

crumpet_man

QrizB said:

crumpet_man said:

How much is index linked state pension worth?  Does it increase by a couple of hundred pounds each year?  Trying to work out if it's that much of a benefit versus living somewhere cheap.

That depends on inflation. At 2% pa, after 10 years your £10000 pension would become £12190. If inflation was instead 5%, after 10 years your £10000 pension would become £16290.

I suppose this is less of an issue if you live in a country with a lower rate of inflation and lower cost of living.  

I'm a few years from even thinking of retiring but I would much rather be somewhere warm and dry.

MacMickster

nigelbb said:

 Maintaining a house in UK & France gives you the best of both worlds. You can to a degree to your advantage choose where you are tax resident & travelling from one residence to the other can be easily achieved the same day.

Since Brexit you can only visit the Schengen area for a maximum of 90 days in any rolling 180 day period. so you will always remain tax resident in the UK.

BuildTheWall

nigelbb said:

It doesn't have to be a binary choice of UK or somewhere abroad. I lived & worked in France for 15 years. I never thought that I would return to live & work in the UK until I did. I still work part time in the UK but live the other half of my time in France. In about 3 years I will give up work & liquidate the SIPP that I am stuffing with all available spare cash from my earnings. I will pay 7.5% income tax & the money liberated will pay off my UK mortgage. My house in France is already paid for (house prices in much of France are unimaginably low compared to the UK eg €50K for a cottage which would cost £300K in South East Englands

The pandemic has made travel difficult over the last 15 months but the end is in sight. Maintaining a house in UK & France gives you the best of both worlds. You can to a degree to your advantage choose where you are tax resident & travelling from one residence to the other can be easily achieved the same day.

Won’t you be paying income tax in uk  on the sipp that’s being liquidated? And that can be at the additional rate?

BuildTheWall

nigelbb said:

It doesn't have to be a binary choice of UK or somewhere abroad. I lived & worked in France for 15 years. I never thought that I would return to live & work in the UK until I did. I still work part time in the UK but live the other half of my time in France. In about 3 years I will give up work & liquidate the SIPP that I am stuffing with all available spare cash from my earnings. I will pay 7.5% income tax & the money liberated will pay off my UK mortgage. My house in France is already paid for (house prices in much of France are unimaginably low compared to the UK eg €50K for a cottage which would cost £300K in South East Englands

The pandemic has made travel difficult over the last 15 months but the end is in sight. Maintaining a house in UK & France gives you the best of both worlds. You can to a degree to your advantage choose where you are tax resident & travelling from one residence to the other can be easily achieved the same day.

Also if u let out the uk home you’ll have to pay capital gains tax when you sell it.