It’s the dream, isn’t it? Sunshine, a new view and new friends, probably cheaper living costs and a fresh start as you downsize and declutter.
A future version of you with time to spend on siestas and reading by a pool, plus the chance for a new adventure too, with interests and projects you never had time for before.
And with thousands of retirees doing exactly that every year, it’s more than just a fantasy. You really can do it.
But retiring abroad isn’t all golf and farmers’ markets. There are some serious things to weigh up before you book that one-way ticket.
Here’s what to consider if you’re thinking about making the move to retire abroad.
The pros of retiring abroad
Let’s start with the good stuff about moving abroad for retirement. Because there’s a lot of it.
The lifestyle
The cliché is that the popular retirement destinations like Spain, France and Italy offer a slower pace of life, somewhere to live out your golden years.
And it’s true: our continental neighbours certainly like to live well, with long lunches and making time to say hello to newcomers.
But you could be busier than ever, too. There are welcoming expat communities (if that’s what you want), or languages to learn, a new culture to decode and so much to do, whether you have a beach, mountain range or city on your doorstep.
The good weather
Retiring to somewhere that sees more sun in a week than the UK does in a month can do wonders for your mood (and your joints).
The health benefits
Retirement abroad can be, if you like, mainly based around ‘wine o’clock’ and Facebook with the folks back home.
But it’s also the chance for a new you. The Mediterranean diet; doing the things you normally love in the summer, but all year.
Countries like France and Spain have strong public health systems too, so you shouldn’t miss the NHS too much.
The lower cost of living
Your pension should go further abroad, with most countries coming in lower for average living costs than the UK. Just remember that you live there now – you’re no longer a tourist – so shop like the locals.
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The cons of retiring abroad
Now for the harder truths. Moving abroad is still moving, and since Brexit it’s all got a bit more complicated for British people to retire in Europe.
Getting a visa
Some of the best EU countries still welcome Brits with a range of visas that are not too hard to acquire.
What you will need is sufficient “passive income” not to be a burden to the country you’re going to. That varies from around €30,000 per year in Italy and Spain to more like €10,000 in France and Portugal. But you can’t earn it from work – it must be from a pension, investments, that kind of thing.
You’ll need health insurance and a clean criminal record too.
Other than that, it’s fairly simple and there are plenty of specialist lawyers out there to fill in the forms for you.
Doing the other paperwork
There is other paperwork too: residency permits, tax forms, healthcare registrations, driving licences. While it’s all doable, it’s not always simple, especially if your language skills are still at the “ordering a coffee with hand gestures” level.
Moving away from family and friends
Then there’s the emotional side. Moving away from family and long-time friends can feel freeing at first, but culture shock and loneliness has a way of creeping in.
The good news is, this isn’t 1825. So get on WhatsApp, invite friends to stay with you, and use a translate app to strike up a convo in your local bar.
Not everything is cheaper
And that can include tax. If you’re keeping a home in the UK, there are tax implications, the same for investments.
It may be cheaper to live abroad, but you need to check in with an IFA who is licensed to advise in the country where you’re planning to retire.
So, is retirement abroad for you?
It’s best not to see retirement abroad as a quick fix. It’s still you, just in a different place (albeit a sunnier, warmer, cheaper place). You’ll need to be up for the challenge of living in a brand new place, ready to make an effort and be open-minded to make it work.
Just don’t be put off by the processes – that’s the easy part. Take it step by step, and there are plenty of people out there to help you. That includes estate agents overseas, who tend to be helpful and proactive in getting you the paperwork you need, such as a tax number.
Retirement abroad means you get to live a little differently. Sometimes, that’s exactly what retirement should be about: a fresh challenge to keep you young.
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