News

A brief guide to retiring abroad

03 November 2007

One of the biggest problems when first considering moving abroad -and it is quite a pleasant one- is that there are so many possibilities.

“Currently, there are over 50 countries in which Britons are buying property – quite simply we are spoilt for choice,” says Sarah Woods editor of the Retirement Property guide. “Some are ideal for retirement, but others less so. The key to making a successful move to another country and buying a new home is research. Property magazines, specialist exhibitions and legal and financial experts can help. The Internet is also an excellent window on the world.”

A number of factors should be considered before choosing a destination. Narrowing it down to a country, let alone a region takes plenty of thought.

The place you choose to retire needs to match with your lifestyle and character. Are you a culture-vulture who loves galleries and the theatre? Are you a mountain person who longs for the first snowflake of winter? Or do you dread the cold and long to stretch out on a terrace with a glass of wine in one hand and a bottle of sun tan lotion in the other? Choose the wrong spot and you will be miserable; choose the right one and every morning will be welcomed with a smile. Remember, there are some places where you can have the best of both worlds. Cyprus is one of them, with the Troodos Mountains providing hiking and skiing within an hour or so of the coastal beaches. It is also important to consider the practicality of living in a location. A Spanish hill village may be a romantic place to retire, but the steep cobbled streets may be totally impractical in later years. Likewise, will you be able to tolerate the heat in summer?

“In the UK tailor-made retirement developments are widespread and tend to be very well organised, but this isn’t always the case overseas,” says Sarah Woods. “Similar developments exist in Spain, but they aren’t widely available in Italy, France or in some of the newer members of the EU. However, things are changing and although age-exclusive accommodation may still be thin on the ground in some countries, a wide variety of bungalow-style properties designed with low maintenance in mind are being built to meet demand from expatriate retirees.”

Finding a property that suits your needs requires a good local estate agent or a UK specialist and plenty of research. The overseas property magazines, the property supplements in the weekend newspapers and the internet are all good places to start. Costs vary significantly from country to country, and from region to region, so it is important to conduct careful comparisons. Also, look at every additional extra, such as management fees in a development.

It is important to consider the cost of living in your chosen destination. The cost of living throughout the EU has levelled out somewhat since the introduction of the euro, although prices have generally increased Europe-wide as a result. Local products, such as fruit, vegetables and wine, still cost considerably less in France, Spain and Portugal than in the UK. Developing countries such as Turkey are even cheaper. By contrast, your grocery bill on many of the Caribbean islands will be high, as everything is imported. At the time of writing, the dollar/pound exchange rate is extremely favourable for UK citizens travelling to the US, a key incentive to invest there.

Be sure to consider the importance of friends and family visiting on a regular basis. This is likely to happen more frequently if there is good access from the UK. Move to one of the traditional favourites such as Spain, France or Portugal and you will spend your time shooing visitors away. Choose a remote area that requires long-haul flights and then a train or bus journey and you may see them for an annual holiday, but probably not much more.

Unfortunately, the other side of the coin is that property in accessible areas is often more expensive. Carcassonne in France is a prime example of how inexpensive flights have opened up new destinations to the British property buyer. Ryan Air is the sole user of what was previously a military airfield and they now offer flights from the UK from £20. The impact of this frequent 2-hour flight has been enormous on the local area, with some properties in Carcassonne doubling in price in just 3 years.

When choosing a place to retire you need to consider whether you want a social network of British people to socialise with- or perhaps you are looking forward to immersing yourself in the local culture. Plenty of ex-pat groups can be found on-line, especially in Spain, Portugal, Florida and the Caribbean islands. It is wise to take several holidays in your proposed retirement destination, preferably at different times of year. Renting a property before buying is also an excellent way of getting to know an area and making friends in advance of making a final decision. It will also allow you to speak to other British people locally, to find out first-hand what their experiences have been.

Learning the language will help you integrate and make friends, so it is worth getting to grips with the basics before you move. Specialist UK language schools, evening classes, distance learning courses and on-line language tutorials are just some of the various options available.

Access to health services is an increasingly important consideration as we get older so it is vital to choose a country that can offer you the medical facilities you require. Many countries have improved the quality of health care services in recent years - but it pays to look before you leap. Also, ask about private health insurance and whether you can join the national health system. Those looking to move within the EU should apply for the new European Health Insurance Card, which has replaced the E111 form.