British people have always seen retiring abroad to sunnier climes as particularly attractive for obvious reasons but new research suggests that Brits of working age now make up a greater proportion of new expats.
The new British Home Office authored report will cause worries of a brain drain during times of recession but, perhaps counter intuitively, numbers leaving the UK actually fall during times of economic hardship.
The report explains the phenomenon as, “partly due to unemployed people having fewer resources to fund a move abroad, and also due to simultaneous downturns in the economies of some of the key destinations for British emigrants”.
The report continues, “This association varies depending on where people are emigrating to, with the relationship appearing stronger among those emigrating to the EU – dominated by flows to Spain and France – in the mid- to late-2000s and weaker among those going to the US.
“It might imply that economic recovery both in the UK and in key destination countries would lead to more British citizens emigrating for work.”
Professionals of working age choosing to become expats must always keep saving for their retirement at the forefront of their minds. Whether it is transferring their UK pension into an offshore structure such as a QROPS or paying into a pension for the first time it is essential that they consult an expat focussed IFA.