Top retirement hotspots for British expats
By Tom Carnegie, 30 Jul 18
While many in the UK may want to retire abroad, without the right planning or financial advice they may find themselves falling foul of local tax laws, warns Retirement Advantage.
The nations favourite retirement hotspots (2017 rankings in brackets):
- 6th: America (7th)
- 7th: New Zealand (8th)
- 8th: Far East (6th)
- 9th: Australia (9th)
Consider local tax laws
Andrew Tully, pensions technical director at Retirement Advantage, said people who plan to retire abroad need to seriously consider receiving advice.
“Without the right planning and financial advice, you can very quickly find yourself falling foul of local tax laws, feeling the pinch because of currency exchange rates or other financial issues, even more so given the current uncertain climate,” Tully said.
One example is that in some countries, UK expats will find that their state pension will not increase every year as its does for their peers who remained in the UK.
Countries in the EU, as well as many others, have “reciprocal social security agreements” with the UK, which means the state pension will increase each year in the same way as retirees who stay in the UK.
However, Australia, Canada and New Zealand, among others, do not currently have these arrangements in place.
Click through to the second half of the list.
Tags: Spain
