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British expats count the cost of living

 

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The number of British retirees choosing to expatriate is escalating, but whereas their decision may’ve once been influenced by the promise of peace and quiet amidst more favourable climes, it now seems that their key motivation to move abroad is money.

Choosing to retire overseas is proving to be far more cost-effective than ever before; not because everyday costs are lower elsewhere in the world, but because they’re rising so rapidly here in the UK. Financially speaking, leaving Britain will start to make a lot of sense for a lot of pensioners.

The UK cost of living is expected to rise for the foreseeable future. The daily drain on domestic UK finances has now risen so much that by 2018, the level of spare funds available to a typical household could be less than £3,000 per month, a figure comparable with that of fifty years ago.

Today, annual state pension payments usually amount to £15,800, some £3,000 lower than those preceding the UK’S recent phase of financial austerity. Could it be mere coincidence that both monthly savings and state pension payments are approximately £3,000 lower than before?

Many less affluent retirees are seriously considering overseas retirement and effectively starting a new life in a more affordable country, where their money might last a little longer. But the cost of living can’t just be growing here in the UK, can it?

The one aspect of any move overseas that really demands close inspection is the local cost of living. Europe has always been a favourite destination amongst British expat retirees, but given the impact of the ongoing Eurozone crisis, the EU economy has been destabilised and is far less predictable.

Unsuspecting British expats could easily find themselves leaping out of the frying pan and into the fire, if they should fail to scrutinise the details of their move. Before committing to anything, prospective expats should always take cost-effective, independent financial advice from an established expert.

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By David Robinson
Editor
Expats Village

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