Millions of people over 50 are planning to move after retirement, whether to move closer to family and friends, pursue a better quality of life or move abroad.
Almost three million people (12%) over 50 in the UK were planning to move due to the coronavirus pandemic, according to a 2021 study by Legal and General.
We are receiving more and more inquiries about retiring overseas, with searches for ‘best countries to retire from the UK’ increasing by 94.1% in the past 12 months.
From living close to loved ones to the cost of living locally, there are many things to consider when choosing where to move abroad.
Croatia recorded the highest score of 70.55%
pixel
Penfold, a digital pension provider, analyzed multiple factors including cost of living, exchange rates and average airfares to rank the top 15 countries to live in for retirement.
Croatia scored the highest with 70.55 percent, followed by Spain in second place with 61.67 percent.
Complete list of the best countries to retire in 2023
- Croatia – 70.55%
- Spain – 61.67%
- Republic of Ireland – 60%
- Italy – 58.89%
- Greece – 58.30%
- France – 57.80%
- UAE (Dubai) – 55.60%
- Canada – 54.40%
- Australia – 54.40%
- New Zealand – 53.33%
- Cyprus – 53.33%
- Thailand – 52.78%
- Philippines – 48.30%
- South Africa – 45.56%
- USA – 38.89%
Mr Penfold said the biggest advantage of moving to Croatia after retirement was the exchange rate. His cost of living, including rent, was also described as “very attractive” compared to his life in the UK.
Croatia’s cost of living index score was 28.47, compared to 46.42 in the UK, with analysis showing that rent and daily living costs are nearly half as expensive as living in the UK.
Spain is also a popular retirement destination for UK expats, with low airfares and relatively short flight times often making it attractive to expats.
The country also ranks highly in happiness surveys and is considered one of the safest countries in the world to live in, scoring 83 out of 100 on the Global Safety Index.
In third place is the Republic of Ireland, which may not be blessed with a warm climate, but the country is close to the UK, has “amazing” healthcare and plenty of green space.
Spain is also a popular country for UK expats to choose as a retirement destination, coming in second place in our analysis.
pixel
Mr Penfold says all a pensioner needs to move to Ireland is the equivalent of €7,000 in their bank account.
Chris Eastwood, co-founder of Penfold, said: “Many people who retire overseas are worried about whether they will be able to receive state pension benefits, but if they have paid enough UK National Insurance contributions and are within the range, they can retire overseas. It is possible to claim the national pension.” 4 months from the age when you start receiving national pension benefits.
“You can collect your personal or workplace pension no matter where you live and you are entitled to the same planned annual increases as if you lived in the UK.
“Before moving abroad, it’s important to know which pension scheme and provider is best for you. Some providers may only allow you to pay into a UK bank account, so additional charges may apply. Be wary of providers that do this.”
With an estimated 500,000 pensioners not seeing their payments increase each year, it’s important to check whether your state pension will be affected before moving abroad.
