New analysis from the web pension supplier, PensionBee, uncovers the nation’s worldwide retirement ambitions, delving into the motivations and fears of aspiring expats.
Surveying UK residents who plan to retire overseas, PensionBee reveals nearly half (47%) of respondents really feel impressed to retire abroad sooner or later on account of the introduction of COVID-19 journey restrictions. Being unable to journey freely at the moment has motivated future retirees to journey extra in later life – with 46% of these surveyed deciding to spend their golden years overseas throughout the previous 5 years.
For the vast majority of respondents, the preferred motivation for retiring abroad is to have a greater way of life (65%) and to expertise a special tradition and nation (65%). Other components embody higher climate (64%), property being extra reasonably priced (55%), decrease taxes (35%) and higher healthcare providers (31%).
Yet, regardless of sturdy motivations behind retiring overseas, considerations round accessing pension financial savings when abroad seem to be widespread. Each technology has been left with some doubts, however none greater than Millennials (24-40-year-olds). Three-quarters (75%) of this technology worry they received’t have the ability to entry their retirement funds overseas with out incurring additional charges or delays – 72% of Generation X (41-54-year-olds) and 65% of Generation Z (18-23-year-olds) additionally share the identical worries.
Due to these considerations, the vast majority of aspiring expats (66%) reported that they’ve saved or will save extra in the direction of their pension pot on account of wanting to retire overseas. Unsurprisingly, the technology closest to retirement has the most important worth financial savings pot, with nearly the identical quantity of financial savings (£39,595) as Generation Z (£18,918) and Millennials (£25,227) mixed. However, there are some notable variations throughout the nation. At reverse ends of the spectrum, 12% of respondents mentioned they didn’t have something saved in the direction of their retirement abroad, whereas one other 12% had between £80,001 – £100,000 put apart – greater than double the typical pension pot throughout every technology.
While placing collectively a strict saving plan (50%), growing office pension contributions (51%) and investing (54%) stay among the hottest methods for individuals to save for his or her retirement overseas, some generations are choosing extra inventive strategies.
Just beneath half (49%) of Generation Z are working a facet hustle or a second job to assist fund their retirement abroad. In distinction, over half of Millennials (52%) revealed they’ve already begun reducing out small bills to assist save for his or her goals of retiring overseas.
Romi Savova, CEO at PensionBee, commented: “Moving abroad and managing a UK personal or workplace pension can seem like a daunting prospect, so it’s encouraging to see that future expats are already thinking about how they need to prepare financially. Circumstances such as pension drawdown fees, fluctuations in exchange rates and living in a post-Brexit world perpetuate the need for savers to thoroughly research their dream retirement destination before making any firm decisions. This can help ease concerns around the cost of living abroad and the accessibility of a UK pension once a saver has started their retirement outside the UK.”
Top 10 destinations Brits would like to retire to
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