The group’s latest Redefining Retirement study has revealed that those with an annual income of more than £60,000 planned to spend time abroad during their retirement – in one form or another.
Of the 1,649 UK adults surveyed, 8% said they were looking to emigrate, 40% were looking to spend a considerable amount of time overseas and 7% hoped to move abroad for a few years before returning to the UK.
Those earning less than £25,000 a year are more likely to emigrate permanently rather than travel and return to the UK.
Brief hiatus
Comparably, 12% are looking to emigrate, 14% are looking to spend a considerable amount of time overseas each year, while 7% wanted to move away to return after a brief hiatus from the UK.
For those earning more than £60,000 a year, the leading destinations people hoped to visit or where they might move were France, with 19%, closely followed by Spain with 18%, the US with 16% and Australia, where 6% had their eye.
Those on lower incomes preferred Spain – also 18%, followed by Australia at 11%, France with 10% and 6% hoped to travel to Greece.
Weather & lifestyle
The primary reasons were weather and lifestyle improvements, cited by 30% and 25% respectively.
Secondary reasons listed were being near family and friends, the reason given by 17% of respondents. Only 4% said financial reasons were behind their decision.
Old Mutual Wealth financial planning expert Rachael Griffin 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.”
