British expats are shunning traditional retirement hotspots and switching their attention to new destinations, according to a new report.
The favourite retirement destinations of France, Spain, Italy and Portugal are falling back in the popularity stakes.
Instead, the US, Australia and Canada are rising to take their place.
More than a third of retirement savers aged over 40 years old in Britain expressed a desire to retire overseas, says a recent study by Crystal Investment and Real Estate.
Long-distance destinations are rising in popularity as air travel becomes more frequent and cheaper, and countries where the locals speak English are also favoured by British expats.
Why Brits retire abroad
The research also found that the four main reasons for moving abroad are:
- Better weather
- A lower cost of living
- Improved lifestyle
- Lower taxation
Spain has held the title of top destination for retirement for British expats for some years, but has dipped in popularity due to economic problems that have seen the values of homes plummet by up to 70%.
Similar problems have best Portugal, Ireland, Greece and Italy, which also ranked high on the go-to list for British retirees.
Florida is becoming a favourite pace for British retirees, who can move to the state for six months during the British winter and then return home for the summer. US immigration laws allow British nationals to stay in the country on a short-term visa.
Besides warmer climate and plenty of entertainment, the US cost of living and inflation are lower than in the UK.
A short-term visa also circumvents tax problems as British visitors remain tax resident in the UK.
Fast track visas
The firm conducting the survey suggests anyone considering a permanent move overseas should consider a number of facts.
“Many people think retiring abroad is like going on a long holiday, but the reality is different,” said a spokesman. “The main points to consider are tax, property prices and healthcare.
“Some countries may offer fast track visas to wealthier expats who can invest a certain amount of money or buy a home. These include Portugal and Belize.”
Although the economies of many Mediterranean countries are lagging those in the rest of Europe, house prices are cheap compared to the peak they reached around 2007, and economic problems are stabilising.
Property prices in Florida are rising fast – and have been on the up for around 18 months as the US economy recovers.
