Brits Retiring Abroad: Where are They Going?

By Ryan Smith –

Maybe it’s because of the dreary, year-round weather but one of the biggest dreams that British people seem to have is retiring from work, and heading to live out the rest of their days abroad, usually in much sunnier climates.

That draw of better weather and relaxed lifestyles is endearing to so many Brits who have had to endure years of bustling, stressful city jobs and summers full of rain.

Research from British bank HSBC has shown that around 38% of those approaching retirement are considering a move abroad – that’s close to 5.4 million people looking to emigrate. And now that retirees can get a big tax-free cash lump sum at the start of their retirement (25% of their retirement fund), as well as access as much as they want via income drawdown, this cash ‘windfall’ can be a great way to make their retirement dreams a reality.

Australia is the number one country for British ex-pats, with the majority of UK residents heading down under to start a new life, with the United Sates a close second.

But many retirees want to feel a little closer to home, probably due to friends and family, and so European countries such as Spain are very popular British retirement destinations.

Spain’s popularity is surely due to the beautiful coastlines, bustling cities, rolling countryside and the wonderful weather – warm and sunny climates through much of the year, particularly on islands like Tenerife and Menorca.

Another popular destination for many British ex-pats is Portugal. Fun fact: Portugal has the third highest British ex-pat population in Europe, only third to Spain and France. Portuguese property can actually be up to 3 times cheaper than property in France. There’s a real opportunity here for retirees to start life anew in one of Portugal’s many beautiful villages.

One place that may not automatically spring to mind when thinking of a retirement abroad is Malta.

Malta is one of the smallest states in the world, but also happens to be one of the most densely populated, but for very good reasons! The year-round temperature averages at around 19C, and the country gets over 3,100 hours of sunshine each year. With English as a first language for most, Malta sets itself apart as an ideal destination for British retirees looking for fun in the sun during retirement.

Should you wish to go further afield in your retirement, other popular destinations for British expat pensioners include Barbados, Jamaica and Thailand.

Ryan Smith writes on behalf of My Retirement Options, providing income drawdown and annuity guidance for retirees in the UK.