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Thousands of Babyboomers are set to retire abroad in the years to come. Find out what you need to know about retiring abroad.
According to recent Italian media reports, Hollywood superstar Mel Gibson is looking to buy a property in Italy.
Hollywood A-lister Mel is reportedly keen on a 600 year old castle with 13,000 square metres of surrounding land close to Vallo, a small town in northern Calabria – the heel of Italy. The Braveheart star is just part of a wider trend that is developing, as Babyboomers retire abroad. While most have benefitted from increasing house prices in the UK over the last 20 years, many Babyboomers are set to cash in on their properties in the UK and seek ‘la dolce vita’ overseas. A YouGov survey for AXA Wealth found that more than 1 in 2 (56%) of those aged 45 - 49 years of age are expecting to move when they retire, largely to take advantage of a change in lifestyle or a move abroad.
Pension Facts for Retiring AbroadIf you are dreaming of retirement abroad there are a number of things that you should consider however, among them a European court ruling from 16th March 2010 indicating that pensioners living overseas will only be entitled to state pension increases in line with inflation if they live in countries that have reciprocal arrangements. Most of Europe is covered as part of the EU; however, retiring to Australia or Canada could see your pension frozen against inflation.
Additionally, if you are buying property abroad be aware of fluctuating exchange rates, which can have a significant impact on your overall budget when it comes to buying your ideal retirement property. It is also worth checking your pension and annuity deals, to ensure that moving abroad will not adversely affect the amount of money you receive in retirement.
Seek Pension Advice from Moneyexpert.com
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