Where British pensioners would retire abroad

Over one in ten British pensioners would most like to live in New Zealand (11%), according to new research from Bank of Scotland International.

Australia came in second place at 7%, followed by Canada and France at 6% and Spain at 5%.

Where British Pensioners Would Most Like To Live Overseas

Country Rank - Preferred Country To Live Overseas
1. New Zealand (11%)
2. Australia (7%)
3=. Canada (6%)
3=. France (6%)
5. Spain (5%)

In addition, just under one third of pensioners (31%) have considered moving abroad.

According to the Department for Work and Pensions one million Britons receive their pension abroad. In addition, the Institute for Public Policy Research expects that more than 3.3m British pensioners will join the silver flight by 2050.

British pensioners receiving their state pension within EU countries such asFrance and Spain will continue to see their pension increase in line with inflation. However, this is not the case for those people who retire to countries such as Australia, Canada and New Zealand. In all cases, non-UK residents will have their pension income taxed in the country in which the person lives.

Bank of Scotland International recommends that anyone planning to retire abroad take the following issues into consideration:

Pension payments – Set up an account which allows you to receive your pension whilst also facilitating international banking.

Additional pension benefits – Any pension benefits that you receive in the UK may be affected by your move abroad. Please refer to the Department For Work and Pensions' (DWP) GL29 guide: Going Abroad and Social Security Benefits for additional information.

Contact the relevant Government Departments – It is essential to contact your Social Security Office, the DWP and the National Insurance Contributions Office so that they know you are moving abroad and you continue to receive your pension.

Look into your tax status – You need to understand your tax status and how much tax you will pay on your income.

Evaluate the currency risk – You should consider the currency risk when living abroad whilst drawing a pension in Pounds Sterling.

Tony Wilcox, managing director of Bank of Scotland International, said: “When retiring abroad it is important to have looked into your pension arrangements and to have adequate financial planning in place."

Bank of Scotland International provides a free, impartial retirement planning service through Independent Financial Advisors.