Great retirement escape for 39%

Friday, 01 February 2008 12:00

Some 39 per cent of Brits are considering leaving Britain in retirement, according to new research.

Scottish Widows predicts by 2050 over three million British pensioners will have fled Blighty, with higher rate tax payers most likely to be heading overseas, with 63 per cent planning to do so .

The retirement flight is greatest from London - with 60 per cent saying they were likely or very likely to move abroad when their pensions came - compared with the south in general where just 38 per cent were considering living overseas.

Currently 5.5 million Britons of all ages live abroad - with a further one million set to join them by 2011, figures from the Institute for Public Policy Research show.

Meanwhile research by NatWest shows the reason Brits are turning their attentions abroad.

The bank's study shows: 91 per cent of expatriates are happier than they were in Britain; 90 per cent are financially better off; 68 per cent feel healthier; and 81 per cent have a greater sense of wellbeing.

Greatest quality of life was recorded in Canada, followed by New Zealand, Portugal, Italy, France, Sweden and Spain.

Mike Hoban, marketing director at Scottish Widows, said: "If you're hoping to be part of the 'Silver Flight' you need to start planning now and seek financial advice.

"Whatever your age, the need to plan your retirement and to understand the options available to you regarding your personal and occupational pension schemes and investments, becomes increasingly important."

He went on to explain taxpayers aiming to retire abroad should remember pensions are one of the most tax efficient savings schemes.

"If you take full advantage of tax benefits on your pension you can even get the tax man to contribute to that dream place in the sun."

Dave Isley, head of NatWest international personal banking, said: "There are a number of different reasons why people relocate abroad, to be nearer to family and friends, to start a new job, or as the study demonstrates, to increase their quality of life. This is only likely to increase in the future, with many more taking the decision to spend their twilight years sipping sangria in Spain, Chianti in Italy, or eating maple syrup and pancakes in Canada."

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