Some expat Brits who plan to remain abroad when they retire will use equity release to fund their lifestyle, research from Alliance & Leicester International has found.
Just 13 per cent of Brits who currently live abroad intend to come home to the UK when they retire, whilst 88 per cent intend to spend their retirement abroad, using an array of funding methods, including equity release.
With the cost of retiring in the UK set to exceed £400,000, many UK expats are choosing not to come home to roost when they reach retirement, with the majority choosing European destinations.
France and Spain remain popular retirement locations for 57 per cent of expat Brits wanting to remain close to family and friends, but more important than family when choosing a place to spend their golden years is the quality of life, better weather, and value for money.
Expats have various plans for funding their foreign retirement; 27 per cent will use savings, 23 per cent the UK state pension, and 20 per cent will use their private pension.
Property will also play a part for 14 per cent of expats retiring abroad – rental income will provide income for six per cent, a further six per cent will sell a property, and two per cent will unlock value from their homes though an equity release plan to fund their retirement abroad.
Lynette Byrne, head of marketing at A&L International, commented: "It is interesting to see that many UK expats have settled in their new home.
"However, while some Expats might prefer life outside the UK, they are still very attached to friends and family thus settling in European destinations that are only a low cost flight away."
But expats still have concerns about spending their retirement abroad, with some worrying about the quality of medical facilities available to them as they get older, and finances are a concern to some, with 13 per cent worrying about the exchange rate and 12 per cent afraid about having enough money to live.
"This research really highlights the international nature of society today," Ms Byrne added, "and raises some interesting questions as to how people are going to manage their finances."
© Fair Investment Company Ltd
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