expats still living the dream survey finds

What is more, seven in every ten of the 1,800 expats surveyed told the bank’s researchers that their quality of life has not declined, and that they believe their decision to move abroad was the right one. 

That said, though, the data – which has been assembled over the past five years with the assistance of the Centre of Future Studies – does show that even expats have had to make some changes to their way of living, as the global financial crisis impacts them.

Among the survey’s findings: 

• Expats are consciously managing their money more prudently, with the  number who say they are reducing their spending on luxury items leaping to 44% this year, compared with just 17% who said they were cutting back five years ago. But this leaves 56% who say they are not making significant cuts in their spending, even though the cost of living over the five year period has increased significantly
• Most of the expats surveyed gave a relatively high assessment of their personal prosperity, with 83% describing themselves as being somewhere between “comfortably off” and “quite prosperous”, compared with around 75% in the 2007/8 survey period. However, those rating themselves as “very prosperous” fell from to 7% in this year’s survey, from 17% back then.
• Where the expats are does seem to matter, with those living in China, the UAE, Hong Kong and Singapore reporting that their financial position has “improved dramatically” since moving to their current  country of residence.
  Those living in Australia, Canada, and New Zealand were more likely to assess their financial position as having “improved significantly”, while those expats living in Western Europe, South Africa and the US were the least  enthusiastic, adn were more likely to describe their financial position as having  improved just “moderately”.
• Those Britons who relocated to such generally sunny destinations as Spain, France and Portugal, meanwhile, “are counting the cost of their moves, as their disposable income is eroded and the cost of living rises”, the report’s authors note.

Dave Isley, head of NatWest International Personal Banking, said the data showed that the global financial crisis had “failed to dampen the spirits of expats, who seem to have adopted the ‘keep calm, carry on’ philosophy”.

“They are indeed our ambassadors abroad, which proves when the going gets tough, the tough get going,” he added.

“The fact that fewer expats say they will return to the UK in the future [than said they planned to] five years ago proves that they are certainly living their dreams, which are driven by factors such as the quality of life abroad, or improvements in financial status.”

Isley noted that when the first Quality of Life Index survey was carried out in 2007, confidence around the world was high, as the global economy was expanding, household prosperity was increasing and global GDP forecasts were positive.

“Fast forward five years and it’s a very different picture,” he said.

“However, it is the expats who are riding the storm, with the majority planning to remain abroad.

“Those who are most likely to return home are those who retired to France, Portugal and Spain as their disposable income diminishes and the cost of living rises.”  

Encore Canada

The No 1 expat destination for quality of life, once again, turned out to be Canada, which has topped the NatWest IPB league table for three out of the five years it has conducted its survey. (See chart, below.) Almost nine in ten, or 88%, of expats surveyed, cited the North American country’s multiculturalism as a factor in its appeal, with 90% rating Canada’s healthcare system as key, and 96% feel that Canada’s human rights and freedoms allow them to feel safe and secure in the country.

The NatWest study was carried out for the NatWest IPB, a part of the Royal Bank of Scotland Group, by the Centre for Future Studies between October and December 2011. Respondents were recruited through emailed invitations as well as by notices on expat websites, with a prize draw incentive offered. 

Respondents were asked to rate their lives abroad, on the basis of such factors as the availability of consumer goods, entertainment, food, public transport, climate and financial matters. 

A separate survey,of British expats living in retirement, was also conducted.   

 Quality of Life Ranking Index:  NatWest International Personal Banking