An increasing number of us are retiring abroad, drawn to warmer, sunnier
climates where our pensions will stretch further, or to be united with
children or grandchildren who have settled abroad. “The silver flight is the
result of Britons being increasingly willing and able to spend their
retirement in Adelaide, rather than Accrington,” says Danny Sriskandarajah,
associate director of the Institute for Public Policy Research. He predicts
that, by 2050, more than 3.3m Britons will live overseas.
Tony and Veronica Hastings, 66 and 60, are one couple who have made the move.
Last year, they paid £205,000 for a three-bed flat on the Costa del Sol, in
Spain. They keep a foot in the UK, with a property in Dorset, but spend most
of their time abroad. “We can walk to the beach in 20 minutes, the bills are
half what they were in England and our dustbins get emptied every day,” Tony
says.
The Department for Work and Pensions says that for the 1m or more Britons who
have a pension paid to them abroad, the most popular location, with 242,560,
is Australia. In Canada, there are 155,120; in the USA, 128,970; in Ireland,
104,270; in Spain, 79,560. New Zealand, Italy and France are popular; so,
are Cyprus and Malta. But how easy is it to retire abroad? Let’s examine the
top five destinations.
AUSTRALIA
Getting a visa Despite historic ties between the UK and Australia,
obtaining residency isn’t easy. The easiest (and cheapest) method is to
apply for one of the various Family Reunion visas, which require a relative
living in Australia to sponsor you. For those aged 55 and over, they cost
about £30,000 a couple. If you are over 65, with family in Australia, you
can apply for an aged-parent visa; it’s free, but there is a waiting list.
Over 55 and no relatives there? Try an investor retirement visa. You renew
it every four years, and must have assets of at least £312,000 to invest.
Property prices They vary from state to state, but are generally lower
than in Britain. Beware, though: no-nAustralian citizens or those without
permanent visas can buy only new-build property. A one-bed flat in Perth, on
the west coast, will cost about £100,000. The same in Sydney will set you
back £150,000.
Climate North, it’s the steamy tropics; further down the eastern
seaboard, where most of the 20m population lives, winters are cool and
summers hot and slightly humid. Tasmania has four distinct seasons and a
UK-style climate.
Healthcare Those on Family Reunion visas are eligible for Medicare, the
Australian equivalent of the NHS. Others need private cover. Finances A
British pension is not index-linked if you live in Australia, so it won’t
rise with inflation.
Getting there Off-peak flights to Sydney start at about £650, rising to
£1,400 for peak season.
Total score: 6/10 – great if you have family there or can afford to do it
CANADA
Getting a visa Adult children living there can sponsor parents, or you
can sign up to the Immigrant Investor Programme. This is for those with
business experience, and requires a deposit of £187,000, returned after
about five years – minus interest. “It’s like a government bond,” says
Richard Gregan, managing director of Overseas Emigration Visas, an
immigration agency. “You lend money to the government and you get permanent
residence.” However, warns the Canadian High Commission, this is not
designed as a retiree visa, and applicants must also have an individual net
worth of at least £374,000.
Property prices The Canada Real Estate Association says that
nationally, the average house price is £140,000. On the west coast, in
Vancouver, the biggest city, the average price is £264,000; in Quebec, it’s
£76,000.
Climate Like the British, Canadians love to discuss the weather. There
are four distinct seasons: in winter, temperatures can hit -25C; in summer,
30C is not uncommon.
Healthcare Holders of British family-sponsored and investor visas
qualify for state healthcare. The system is administered locally, so
services vary; in some cases, you will pay extra for certain procedures.
Finances There is a two-tier system of provincial and federal taxes.
The top rate of federal tax, 23.51%, applies to incomes of more than
£93,404. Provincial top rates range from 10% to 18%. British pensions are
not index-linked, so will not increase in line with inflation.
Getting there Flying to Canada has become cheaper. British Airways and
Air Canada offer off-season returns from as little as £374.
Total score: 7/10 – be prepared to invest in your new country
USA
Getting a visa British retirees can legally spend up to 90 days in the
United States without a visa, or up to 180 days with a B1/B2 visitor visa.
Many British “snow birds” own holiday homes in winter-sun destinations to
take advantage of this. To stay longer, you need children who are US
citizens, in which case you can seek an immigrant visa, or you must make a
“substantial” investment (the US Embassy does not state how much this is,
but it must involve capital risk) to start a business that provides an
income to support you and your family. This will allow you to qualify for an
E-2 visa, which lasts as long as the business does.
Property prices A weak dollar means that in the past year, for Britons,
the cost of buying property has plunged by 11%. The market is unsettled – in
Florida, it’s in free fall. If you are moving permanently, you’ll be able to
drive some hard bargains.
Climate As varied as the many states. Extremes are usually greater than
in Britain, so you’ll get “proper” winters and long, sunny summers. In
Florida and Hawaii, it’s warm all year.
Healthcare Contrary to popular belief, there is state healthcare, but
coverage is limited and anyone who can afford it takes out private cover,
the cost of which is high. Buying through an American insurer means faster
emergency care and makes it easier to recoup expenses; however, some
insurers will only accept foreigners who have lived in the USA for one or
two years. Whatever policy you get, ensure it is “admitted” in your state of
choice.
Finances You will be liable to pay income tax, but the top rate, 35%,
kicks in only above £186,000. Watch out for local taxes, which can add a
lot, but vary from state to state.
Getting there Off-season, from about November, you can fly to Miami
from about £500. In peak season, the price can be nearer £1,500.
Total score: 6/10 – just don’t get ill
IRELAND
Getting a visa No need – it’s in the EU. Property prices The average
house price was £211,000 in March, according to the Irish Permanent
TSB/Economic and Social Research Institute index.
Climate Temperate, but the Emerald Isle is green for a reason.
Healthcare Universal public healthcare; users pay a proportion of the
costs, capped at £41 per night or £410 per year.
Finances Married couples over 65 are exempt from tax on incomes of up
to £26,000. Above that, the rate is 20%.
Getting there Cheap flights abound. Ryanair flies from the UK to Dublin
from £45.
Total score: 7/10 – a civilised pace of life, but pack a raincoat
SPAIN
Getting a visa No need – it’s also in the EU. You must register with
your town hall and get an identification number, which entitles you to state
healthcare. You won’t get any UK welfare benefits other than a pension.
Property prices On the Costa del Sol, a nely built two-bedroom flat in
reasonable condition costs about £205,000. The northern Costa Blanca is
comparable in price, but on the southern Costa Blanca, prices are lower:
about £137,000 for a similar property.
Climate Lots of sunshine, mild winters and little rain on the costas.
Healthcare British retirees registered in Spain can transfer to the
Spanish system. Early retirees get free healthcare for two years, but may
then need private cover until they qualify for a UK pension.
Finances UK state pensions are index-linked for Spanish residents, but
you will be liable for income tax, with a top rate of 43%.
Getting there A host of budget flights from British cities – but book
well in advance for peak season or you could pay £400 return.
Total score: 9/10 – but don’t forget to do the paperwork
Re: Australian Weather
St Helens on the east coast of Tasmania has 300 days of sunshine. The Southern Highlands of New South Wales has distinct seasons, Victoria has snow resorts ...including Mt Buller which is approximately 2 hours north east of Melbourne. The Gippsland Lakes region, three hours east of Melbourne is named, 'The Victorian Riviera'...great for boating fans. In the west is Albany, Margaret River, Mandurah...also popular with retirees. Having researched and written two editions of 'Where To Retire In Australia', we know the climate.
Jill Weeks, author.
Jill Weeks, Melbourne, Victoria, Australia