The Costs Involved Of Retiring

Travel-and-Leisure In a recent multi-national study conducted by Aon Consulting for the over 50’s life insurance and pension markets people were polled to find our where they would like spend their retirement. Only 43% of Brits wanted to stay here, .pared with 87% Spanish and 81% of French saying that they wished to stay in their country. So you’ve had your last payslip, the gold clock to go with it and a few pressies from your work mates, where should you go and importantly how much will it cost? So where do the British want to live abroad when they retire? Most would like to retire in Spain well at least 25% of us, followed closely by Australia and the USA. You have some important decisions to make; you will need to understand things like taxes, exchange rates, property prices, cost of living, cars/fuel, utilities, legal expenses and many more financial considerations to take into account. Britain has "Double Tax Agreements" with Portugal, Italy, France and Spain, this means that if you where be resident in the UK for 183 days per year or 91 days a year over a four year period, you would be liable for tax in the UK. Before you look to move abroad seek advice from your local HMRC, they can give potential tax liability of moving to your chosen country and also a projection of state pension. Depending on what your plans are you could be liable for taxes in both countries, but if the country you are moving to has the "Double Tax Agreement" you should not be paying more than you should. Your current assets are taken into consideration and depending on how they are spread and to what jurisdiction you could be liable for taxes in that country, if anything applies to both countries you should receive a rebate back from HMRC. Taxation on your worldwide assets is another topic that will interest those of you that are looking to move abroad, if you went to live in France for instance, they will tax you at 0.55% for the first £500k up to a maximum of 1.8% if you are lucky enough to have £15.5m or more, the Spanish rates begin at 0.2% but you get an allowance of £150k exemption on your main residence and a "personal allowance" of £108k. This would effect any saving you had in the UK especially if they where held in tax free savings accounts, like ISA’s, Tessa’s and Pep’s, even if you where still in the UK you could be liable to tax in Italy, Portugal, France, Spain to name a few. Get financial advice prior to encashment and when the time is right look to reinvest in your new domicile country. Taxation is something nobody likes to discuss but it’s something we all have to deal with, whether it’s self assessment, Ltd .pany or personal taxation. Reading the above might put you off the big move, but should it? No! you can get help prior to moving as long as you are willing to sit down with either a tax expert or an Independent Financial Advisor (IFA) get the full details of what implications you may have and move forward and sort them out, once this is done the move to your new country will be much less stressful. You have now retired state pension age and your move to your new EU country is on the horizon, you are fully aware that your state pension is payable in your new country as well as a winter fuel allowance. 74,000 ex pats now live in Spain .pared to 26,700 that where there 10 years ago, one of the major attractions is that these benefits are payable to you whilst you live there, this is why it tops the list of places to live. One important piece of paperwork we have not discussed is your Will, you may have one for the UK, but you will need to get one that mirrors your existing Will in your new country of residence, this will make things airtight for you, your family and their dependants, so get one done as soon as you arrive in your new country. Now we have discussed all the main subjects, let’s look at what other expenses you might have forgot to include. Let’s look at transport; are you going to be driving? New car or bringing out the reliable motor with you? Have you researched the cost of a new car and what it will cost when you have converted the exchange rates and any extra taxes you need to look out for? Research and make sure you know the cost before you buy; also if you are bringing over the car over with you look into how much your current insurer will charge you as if you need to be told they drive on the other side of the road, so there maybe an additional charge here. Another cost could be things like dishwasher, freezer, washing machine, even things like plug adapters all add up. So where are you looking to move to? City or countryside, there will be a huge difference in cost which in essence could save you thousands of Euro’s, is it the hustle and bustle of a city or is it that you have no transport, or is it the idyllic rustic lifestyle that’s required so you can potter around in the car. House prices are not as robust in foreign countries that that of the UK, they are all going through tough times, so you maybe able to negotiate a great deal especially if you are a cash buyer, don’t expect fantastic growth. We have all heard of the credit crunch, it is not just the UK that has been hit by this, every country in the world has suffered and because of this some countries are more susceptible to an economic downturn. We all know that the UK is an overcrowded island already, not enough houses are being built to meet demand, this could be one reason why you are looking to move away, but don’t think because you are getting a bargain that you are likely to make a killing on the property that you are buying, as prices within the country you are buying do not have the same economic conditions of the UK. If you are buying for the long term fine, if for the short term be wary. Well there you have it! The Planning can be a hard slog, but you deserve the rewards and benefits after a long hard lifetime of working and saving. The more specifics you have to work with will make it easier to make a decision. Bottom line is it’s not costly to retire abroad, but it can be more .plicated than first thought. Now is the time, are you going to make the move or stand still, our advice, get planning, focus and enjoy your retirement. About the Author: 相关的主题文章: