Which is the best country to retire to? Brexit has thrown open discussions about how those who are retired and living in the EU will be affected, for those thinking of moving abroad the question of where to retire may need a rethink.
With the removal of Freedom of Movement, those that plan to retire within the EU from next year will be treated to the same rules as other third countries. There are bound to be requests for evidence of financial well-being in order to support an application to reside in the EU and beyond.
And, don’t forget, that the UK State Pension is not uprated in some countries and this must also be taken into account as part of your plan to move abroad. How Brexit will affect the uprating of the UK State Pension is not yet known.
Best Country To Retire To- Pensions
Understanding UK pensions and what they will pay, both State and private, and the cost of living of the planned destination would be a good start. Should the UK pension be left in the UK or would a transfer to an Overseas Pension be better?
Tax advice is essential prior to the move as is a review of your options before becoming tax resident abroad. For example, while UK pensions may allow a tax free lump sum to be paid, other jurisdictions can tax this lump sum even though it originates from the UK .
Most Popular Destinations for the British
The following is a list of the top destinations that Brits have decided is the best country to retire to:
However, the most popular countries are not necessarily the best countries to retire to, based upon individual circumstances. And, the requirements for visas and permanent residency will differ- especially considering the removal of Freedom of Movement.
Summary
While we cannot advise on the healthcare, tax systems and the weather of the planned destination, we can help with the planning related to pensions before and after the move.
The views expressed in this article are not to be construed as personal advice. You should contact a qualified and ideally regulated adviser in order to obtain up to date personal advice with regard to your own personal circumstances. If you do not then you are acting under your own authority and deemed “execution only”. The author does not accept any liability for people acting without personalised advice, who base a decision on views expressed in this generic article. Where this article is dated then it is based on legislation as of the date. Legislation changes but articles are rarely updated, although sometimes a new article is written; so, please check for later articles or changes in legislation on official government websites, as this article should not be relied on in isolation.
This article was republished on 5th March 2020.
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