Standard Life Reports Spain Tops Overseas Retirement Hotspots
Released on: August 24, 2011, 3:12 pm
Standard Life has revealed the top retirement hotspots outside
the UK with the Spain at the top of the list, followed by Australia,
USA, France and Ireland.
John Lawson, Head of Pensions Policy, Standard Life commented: "Retiring abroad is a dream for many people, but does require careful
planning and advice. Many people think living abroad is cheaper than living in the
UK, but this isn't always the case. Doing your homework in advance of moving,
matching your retirement income and expenditure, and making the appropriate
decisions around purchasing an annuity or using income drawdown are key
considerations. Your retirement income could also be subject to exchange rates and
currency fluctuations, as well as local tax laws.
"You also need to think about your state pension and what, if any, reciprocal
agreement is in place. A reciprocal agreement entitles you to any increases in the
UK state pension paid for by the
country you retire to. However, if there isn't a reciprocal agreement in place,
then you need to be very careful your retirement income is sufficient to cover your
living costs over a long period of time. Over a 20 year retirement, your basic
state UK pension could halve in real terms if a reciprocal arrangement is not in
If an individual moves abroad permanently, any increases in their UK state pension
will only apply if they are living in an EU country (including Gibraltar and
Switzerland), or a country with a reciprocal social security agreement with the UK.
Where the individual is living outside these countries, the amount of UK state
pension they will receive each year is frozen at the amount initially paid when
first claimed (or if the pensioner emigrated more than one year after payment began,
at the rate in force when emigrating). Popular retirement countries outside these
reciprocal agreements include Australia, Canada, New Zealand and South Africa.
Those who are considering retiring abroad in the future, but are wondering if their
retirement savings will be sufficient can go to www.yourfuturemoney.co.uk, where
they can check if their retirement planning is on track.
- Ends -
Notes to editors:
- In August 2010, the top retirement hotspots were: 1st Spain; 2nd France; 3rd
USA; 4th Canada; 5th Ireland.
- Standard Life currently pays pensions to over 3,000 people using an overseas bank
- A list of European Union countries and countries that have reciprocal arrangements
with the UK is available from the DWP website: www.dwp.gov.uk/international/social-security-agreements/list-of- countries/. A
reciprocal social security agreement is where the country of residence agrees to
increase the state pension in line with any increases in the UK.
About Standard Life:
Standard Life is a leading long term savings and investments company headquartered
in Edinburgh and operating internationally. Established in 1825, Standard Life
provides ISAs, life assurance, annuities, mutual funds, investment bonds, tax
efficiencies, financial planning advice, and investment management to over 6.5 million customers worldwide.
Senior Media Affairs Manager
Standard Life plc
30 St Mary Axe
44 (0)20 7872 4481
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