personal finance

Expat news: Top retirement destination for British pensioners REVEALED – it ISN'T Spain


Australia has topped a list of the most popular retirement spots as British pensions chose the warmer climate and laid-back lifestyle of Down Under to live out their golden years. A total of 234,800 British expat pensioners, equivalent to the popular of Swansea, claimed their state pension from Australia, knocking sunny Spain off the top spot for destinations. This is according to investment platform easyMoney, whose research involved 1.2 million British expat pensioners spanning across Asia, Africa and the Middle East. Other top destinations for pensioners are the USA, Canada, Ireland and Spain.

For those dreaming of heading to somewhere exotic to retire, easyMoney advises to build a sizeable private pension pot.

The company claim a state pension on its own is unlikely to be sufficient to meet the costs associated with relocating including housing, living, healthcare and insurance.

To build a pension pot, easyMoney says it is important savers do not just leave their cash in current accounts where low interest rates could fail to bring customers value for money.

Andrew de Candole, CEO at easyMoney, says: “Spending your golden years abroad is an attractive option for many but it does rely on having a sizeable private pension pot.Spending your golden years abroad is an attractive option for many but it does rely on having a sizeable private pension pot

“Unfortunately, leaving cash sitting in low interest savings accounts will not fund that dream retirement abroad.

“Investors need to put their money to work whilst they are working in order to reap the rewards when they retire.”

Express.co.uk recently revealed how much you really need to save for your retirement.

Kay Ingram, director of policy at financial planners LEBC, advises you should save a percentage of salary equal to half your current age if you want to have half your salary paid as a pension by your mid 60s.

Of course a large factor of this depends on your lifestyle and any changes in life expectancy.

Another element which will impact how much you will receive during your retirement is the type of pension scheme you are currently enrolled in.

Most schemes for public sector workers are defined benefit, a scheme which is agreed by the employer and guarantees a specific retirement benefit.

This means the amount you receive depends on the terms of the agreement, rather than how much a worker puts into their pot.

A defined contribution scheme is based on the worker’s contributions.

Ms Ingram said: “So a 20 year old needs to save 10 percent a year, whereas someone starting to save at 50 would need to put aside 25 percent of earnings on a regular basis.

“This may look a bit daunting given other demands on income.

“The important thing is to start early, save what you can and avoid gaps with no saving.

“The sooner you start saving for retirement the less you need to pay in each month.”

TOP 20 DESTINATIONS FOR BRITISH EXPAT PENSIONERS – NUMBER CLAIMING STATE PENSION

Australia – 234,880
USA – 134,130
Canada – 133,310
Ireland – 132,650
Spain – 106,420
France – 66,970
New Zealand – 65,370
Germany – 42,050
Italy – 35,160
South Africa – 33,790
Cyprus – 18,180
Netherlands – 12,910
Jamaica – 12,840
Switzerland – 11,530
Portugal – 10,920
Jersey – 9,180
Malta – 6,380
Japan – 6,270
Greece – 5,940
Sweden – 5,920



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