You may be planning to spend your retirement in a different country - attracted by the sunny days, coastal locations or an easier pace of life.
There may also be financial advantages too: Property may be less expensive, the cost of living could be lower and the taxes you pay might be less than in the UK (though tax treatment depends on the individual circumstances of each person and may be subject to change).
If you're considering moving to another country you should find out as much as possible about the implications of a move overseas, before you make a decision.
What happens to my State Pension if I retire abroad?
Your State Pension can be paid anywhere in the world. If you're living in a part of the European Economic Area (EEA) or any other country that the UK has an agreement with, your State Pension will still increase each year. If you're living outside the EEA or any country that the UK doesn't have an agreement with, your State Pension won't increase each year.
How do I arrange for my private or company pensions to be paid?
You may be able to transfer your pension into a recognised overseas pension scheme (ROPS). It's important to note that there could be tax implications from transferring your money to another scheme, and we recommend getting financial advice before making any decisions.
What else should I think about?
This isn’t an exhaustive list, but it does cover some of the key issues you should think about:
- Tax rates. How do tax rates compare with the UK and how will this impact you?
- General costs of living. The cost of food, eating out, clothes and so on.
- Property prices. Many people may be attracted by the prospect of cheaper property prices.
- Healthcare. What‘s free and what you have to pay for (and the likely costs).
- Other considerations. For example, some countries insist you invest money in the country often at low rates.
It’s important to take the time to consider all of your options. Moving to another country to start your retired life may be an invigorating and rewarding experience, but it pays to do your homework first.