UK Finance News

alliance & leicester international

A survey by Alliance & Leicester International has revealed that a staggering 87% of ex pats are content to choose to retire in the country that they have chosen to reside in, with France (18%), Spain (13%) and the UK (12%), being the most popular retirement destinations.

With the cost of retirement in the UK estimated to hit £400,000, ex pats intend to fund their retirement in the sun through savings (27%), UK State Pension (23%) and Private Pension (20%). Property is a major source of retirement funding with 6% relying on rental income, 6% intending to sell a residential investment and 2% opting for an equity release plan.

When considering the key factors that contribute to choosing the perfect retirement destination, better quality of life was the most popular answer with 21%, but close behind is a better climate (20%) with value for money (14%) in third.

Major concerns regarding moving abroad appear to be proximity to the UK, with well over half of those surveyed choosing to live in Europe to be closer to UK relatives and friends. Health care and medical issues- in a foreign language, concerned 22% while finances and exchange rates would concern 12%.

Ten percent of those surveyed said that they would not consider moving abroad because of family ties in the UK. Also their lifestyle allows them to take summer vacations as well as the opportunity of skiing holidays in the winter months.

Lynette Byrne, Head of Marketing at Alliance & Leicester International, commented:

“It is interesting to see that many UK expats have settled in their new home, with 87% of UK Expats intending to retire abroad.  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.

This research really highlights the international nature of society today and raises some interesting questions as to how people are going to manage their finances and protect their savings against interest rate fluctuations.

Expats who bank with Alliance & Leicester International can choose to hold their savings in a sterling, US Dollar or Euro account giving them not only access to ‘Best Buy’ rates but also the opportunity to shield their retirement cash from currency fluctuations.  They can also be safe in the knowledge that they can access their money using internet banking 24 hours a day no matter where they are living.”