New research shows that over half of Britain’s wealthiest people plan to spend the majority of their retirement overseas
A major finding of the Redefining Retirement study by wealth manager Old Mutual Wealth is that those with an annual income of £60,000-plus are setting their sights on being international jet-setters in retirement. Emigration is favoured by 8%, 40% are looking to spend a considerable amount of time each year overseas, and 7% want to spend a few years overseas before returning to the UK.
Those with an annual income of less than £25,000 are more likely to emigrate permanently rather than travel back to the UK; 12% are looking to emigrate, 14% are looking to spend a considerable amount of time overseas, and just 5% are looking to spend a few years overseas before returning to the UK.
Top destinations for people with annual income over £60,000 to emigrate to or spend a considerable amount of time at:
1. France (19%)
2. Spain (18%)
3. United States (16%)
4. Australia (6%)
Top destinations for people with annual income under £25,000 to emigrate to or spend a considerable amount of time at:
1. Spain (18%)
2. Australia (11%)
3. France (10%)
4. Greece (6%)
Better weather (30%) and better lifestyle (25%) were the top reasons given across all income brackets for moving overseas, either permanently or temporarily. Another key reason was to be near family and friends (17%). Financial reasons rated bottom of the list with just 4% stating this as a motive.
Rachael Griffin, financial planning expert, Old Mutual Wealth, said, “Living overseas, either permanently or temporarily, is clearly something a lot of people aspire to but there are financial implications of doing so. Having a clear savings plan and a goal in place will help them achieve their dreams and enable them to live the life they want to live in retirement. Financial advice can help put this plan in place and will also help to ensure any pension and investments are structured in the most tax efficient way possible when they move overseas, allowing them greater financial freedom in retirement.”