Every year thousands of pensioners across the UK consider and dream of a life of retirement on foreign soils. Whether it be Spain, Australia or the United States; spending the remaining years of your life in a warmer climate is a temptation too high for many to resist. Many retired parents dream of moving closer to their children who work abroad and many others just simply wish to try something different now that their work obligations are over.
Unfortunately though, the vast majority of pensioners are unable to turn this vision into an actuality. Why? Because most UK pensioners are reliant on the basic state pension and this allows a maximum of £113.10 a week for a single individual. That’s not the bones of it though, as for many expats their annual pension increases are then frozen.
Why in Retirement?
According to research conducted by HSBC, the “biggest drivers behind choosing an ideal retirement location for expats are quality of life (62%), having family in the country (57%) and the weather (50%)”. For 19% it’s a tax consideration, and these are generally higher earners.
What do you need to consider?
HSBC also put together a study about ‘The Future of Retirement’ and found that 63% of retirees are concerned that they don’t have enough money to live on during retirement, and 38% don’t feel that they have planned sufficiently. Due to this, many people’s hopes of retiring abroad may not become a reality – 50% of the people surveyed said that their desire to travel more would be the main thing that would have to be cut short.
There are many associated risks and benefits to moving abroad, especially at retirement age. Your pension status is not the only financial consideration to take into consideration either, as in some countries you will not be able to receive pension increases along with the rest of the UK. Currency exchange and healthcare are also major considerations too. The vast majority of other countries do not possess the same free healthcare system as the UK and at ripe age this is an important consideration.
Keep accumulating cash
Over half of retired people are still saving, some because they haven’t saved enough pre-retirement and some who are just continuing good habits. But rather than simply saving, some could be investing and accumulating more interest.
Lenders can earn between 3 and 6% when they invest in Peer-to-Peer lending, and put their money away for anything between 12 months and 5 years. Registration is quick and easy, and for those who are definitely planning to continue their retirement abroad, their account is accessible from anywhere in the world.
Pensioners who want to get more out of their savings are starting to look to alternatives to boost their nest egg and its overall value. Peer-to- Peer lending through Wellesley & Co. offers a straightforward alternative to saving. We are the fastest growing P2P lender of 2014 and specalise in asset backed lending. We offer rates of up to 6% and a range of terms to suit your investment criteria.
Find out more about Peer-to-Peer, any risk attached, and how you can invest here.