Five top destinations to retire abroad
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by Ruth Emery
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Choosing where to spend your retirement - almost a third of your lifetime - is an enormous decision. Remaining within the EU could be convenient, as many of the laws are the same, so there would be few nasty surprises.
Going further afield to Australia and New Zealand might also be relatively easy as there is no language barrier and the state, social and welfare systems are fairly similar to those in the UK.
But really the world is your oyster, and it's worth thinking about some of the more exotic countries.
If you're looking for cheap living costs, Panama, Belize, Turkey, the Philippines and Argentina are five places highlighted by expat website www.shelteroffshore.com as countries where retirees can live like millionaires.
Panama is a favourite with American retirees attracted by the inexpensive living costs. There is also arguably little risk of political or economic upheaval in Panama due to its important canal that the US watches like a hawk.
Belize, where English is the official language, boasts an appealing Retired Persons Incentive Programme that enables retirees to live tax-free. You have to be over the age of 45 and have at least $2,000 monthly income to qualify.
Around 20,000 people have already taken advantage of it. According to Shelter Offshore, there is ample opportunity to buy a cheap property in Turkey. It also benefits from its closeness (and cheap flights) to the UK. However, political volatility is a potential problem.
Like Belize, the Philippines offers an attractive package for retirees: the special resident retiree's visa. This allows you to work there as well as receive your pension and annuity tax-free.
The cost of living in Argentina is a lot cheaper than it is in the UK, even with the decline in the pound. Red wine and steak lovers will be delighted with the quality of food and drink as well as the low prices.
However, trouble is brewing between the UK and Argentina over oil rights off the Falkland Islands.
Whichever destination you choose, it's vital you do your homework. For more help read - Keep your overseas retirement dream alive.
This article was originally published in Money Observer - Moneywise's sister publication - in July 2010
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Unless you are a retired US serviceman, or super rich, I would not advise anyone to contemplate retiral to the Philippines, even if you have a Filipino wife! For a start you will need to deposit at least $250,000 in a local bank and show that you have a good income. However, despite what you may hear, the Philippines constution does not allow a non citizen to own a even a square inch of land, which means you either have to buy or rent a flat at ridiculously inflated prices, and be ripped off right left and centre with ever increasing exorbitant 'maintenance' and other charges, or rent a house at a foreigner ripoff rent, or buy a house but have it in the name of a Philippines citizen...another recipe for disaster, even if the citizen is your wife. Apart from that, medical facilities are deplorable. Most doctors are more interested in getting your regular business than curing you. There are no more than two anywhere near decent hospitals in the country and they charge.extremely indecent amounts. If you become sick and can afford it, you will have to do what the rich locals do, and catch the 1st flight to HongKong, and beyond.You will also have to put up with the high crime rate that makes the UK look virtually crime free, and a totally corrupt police and judiciary.
Yes, a retiree IS allowed to work in the Phillipines, but only in certain businesses. For example, a foreigner is not allowed to be involved in any retail business. Many other businesses are required to have majority ownership in local hands. As far as employment is concerned, as the Philippines has unemployment of at least 30% and underemployment of another 40%, including a huge number of well qualified graduates,the chances of a retiree getting a job is extremely remote. In fact, their commonest occupation is 'owning' or being a 'partner' in a small bar, fronted by a local. That is, until so much of their money has trickled away that they are forced to sell out to the next unsupecting expatriate that thinks he can do better.(But never does).
Understand that if you retire to Australia your state pension will be frozen at the amount it was when you left the UK.
We've been in France for six years. The drop in exchange rate has been a knock to expats. Life in the Charente life is slow and peaceful. French red tape can be confusing. The cost of living probably works out equal. Goods are expensive but there's always a Brit pipeline.
A Country which looked very attractive about 3 years ago was Malaysia. They did and still do run a scheme called MM2H (Malaysia My Second Home). You have to fulfil certain financial and medical criteria in order to qualify but many retirees should have no problem. I applied to join this scheme a few years ago, got reams of paperwork assembled, every page of the passport scanned and Notarised (an expensive business), Bank Statements signed and verified by the Bank Manager, Utility Bills, Council Tax Bills and lots more and finally sent it all off (by registered mail, again expensive). Some weeks later an acceptance letter came and I started to wind up here, getting the house valued, shippers organised and all the rest then the bombshell dropped. I got a letter to say that the Committee (dealing with applications) had decided against granting a residence visa, no explanation given. I wrote three times asking why I was turned down- no response. Since my application the goal posts have been shifted several times so I would think seriously before applying to retire there.
Such a shame because it's a beautiful Country and very nice people. I suppose it's to be expected when a Government Committee is involved.
Why not go to Southern (Greek) Cyprus ? .
Weather great, not to far to fly to UK / Europe.
Tax on retirement income is 5%, It is in the EU, they drive on the correct side of the road, and have 13 amp square pin plugs !.
Legal system very like the UK's, In the Eueopean union, and the Euro zone.
All the locals speak English.
Down side, can be a bit scruffy around the edges,
Property can be expensive.
Strong influx of new money from Russia, which keeps the property prices higher than they would othrwise be.
We`re planning on Northern Cyprus. Lots of Brits there already. Cheap property. Looks a good bet. Anyone any views?
I'm not sure how much research went into this article, but for many countries much more in depth matching to individuals circumstances should be borne in mind.
We have a home in Turkey but the constant rip off's and red tape mean that it is in fact cheaper to live in UK! Granted house prices can be cheaper, but inflation is on the rise again, sterling is volatile so income fluctuates wildly, prices are increasing rapidly.
Sounds a lot similiar to Jersey in the Channel Islands even if your father was Jersey born.
We have looked into retiring in Jersey it is expensive and would not be a wise move for us wishing to work less hours and have more free time so the Philippines would also be off our list.
Thanks for the realistic info; I tink the article paints too rosy a picture...!
We have a house in Kato Paphos (Southern Cyprus) but have not yet retired there although we visit on a regular basis.
Property prices have gone down over the past year. Some developers offer discounts of 30% on new properties and current owners are not finding it easy to find buyers if they looking for a sale.
The tax on pension incomes is good but prices do seem to have increased since they joined the euro.
Please forgive me but why do so many people fall for BUYING abroad?.
Perhaps it's the accountant in me....but it is far more cost effective to stay in the UK and utilise all those cheap flights to other folks cheap accommodation in many different locations.
A very small proportion of overseas property "investors" make any money at it...all things considered.
I'm surprised that Florida isn't mentioned here, particularly for those who want to spend some time in England each year. We live in Florida during the winter months and England during the summer months. The weather most days in Florida during the winter are like the best few days' weather in England during the summer. So we enjoy better weather in Florida than in England. Property prices are much lower in Florida than in England. Cost of living is, overall, about the same. Language is the same (well almost!), legal system is not strange, people very friendly.
My wife & I are intending to "retire" to Spain; the weather (even in Jan) is great - although a bit cold at night in Jan, most prices are cheap (bus services are not great - although cheap-ish), crime is pretty low (depends where you go) and a large British contingent.
Northern Cyprus is a territory occupied by Turkey after the 1974 war between Greece and Turkey. It is not recognised in international law and its situation is liable to change without warning.
Agree with all you say, but how do you get on with medical insurance???