Retiring abroad in a hot, sunny country is dream for many but for some expats this dream is proving harder to finance than originally thought.
The Expat Explorer survey shows that most retirees favour Europe as their destination of choice, with France and Spain topping the poll, for quality of life. However despite this lifestyle appeal, recent research has highlighted a growing number of expats living abroad who are facing financial difficulties as a result of their pension arrangements.
These findings suggest that British expats living in Europe have potentially lost out on over €3 billion on pension transfers and with many considering return home as a result.
One of the key factors in this issue is the economic downturn leading to a weakening of the pound and having a direct affect on foreign exchange rates. Research, carried out by HiFix, calculated that in the last two years alone 1.2 million retired British couples, all over the world, have seen their monthly pension incomes hit by increasingly expensive transfers. The worst affected expat pensioners have been identified as living in South Africa, New Zealand and Australia and according to HiFix a pensioner living down under would now be AUD$973 (worse off on a couple’s pension than in 2008.
Are you an expat currently receiving a pension, or are you worried about how your future retirement or long term savings plans may be affected? Feel free to tell us your thoughts.
For more information on offshore banking visit http://www.offshore.hsbc.com/1/2/international/home