As Rising Cost of Living Prompts Retirees to Move Abroad, Here are Places to Consider
As people face layoffs and rising costs of living, they are considering various lifestyle changes such as living in vans to save up on rent, and moving to a less expensive place. After digital nomads normalized moving around while working, many are now looking at relocating abroad for a comparable standard of living at a lower cost, to spend their retired life.
Spain: A financially astute retirement choice
A report identifies Spain as the most affordable country for UK expats, with living costs approximately $880 per year lower than in the UK. This includes day-to-day expenditures like groceries, healthcare, travel, and leisure. The Mediterranean country allows for a 35% reduction in living expenses, providing individuals with an extra $882 annually to spend on themselves.
The country boasts a substantial expat community, with over 103,000 British retirees receiving the state pension in Spain. A substantial cost difference is evident in daily expenses, with the average weekly grocery shop costing $34 less in Spain than in the UK.
Moreover, the report highlights significant savings in other aspects of life, such as alcohol, travel, and entertainment. A bottle of gin, for instance, costs $12 in Spain compared to $32 in the UK. Renting a small car for a week is $92 in Spain, significantly cheaper than the $300 it would cost in the UK. Enjoying local cuisine or a night at the cinema also comes at a more reasonable price in Spain.
France: An expat haven
France, a perennial favorite among expats, ranks as the second most affordable country according to the Property Guides report. While not as budget-friendly as Spain, living costs in France are approximately 7% lower. The country offers diverse landscapes, from chateaux in provincial villages to villas on the Mediterranean coast or chalets in the mountains.
The cost comparison includes groceries, with France ranking fifth most affordable. A basket of supermarket essentials, along with a bottle of gin and a bar of dark chocolate, costs $84.
Additionally, wine enthusiasts can indulge at a local mid-range restaurant with a bottle of house wine priced at 16, compared to $25 in the UK. Electricity in France is also notably cheaper than in the UK, Spain, Cyprus, and Portugal.
Australia and New Zealand: Sun-Soaked, but Pricier
While Australia and New Zealand offer abundant sunshine, the report indicates that the cost of living in these countries is higher than in the UK. Basic expenses such as food, healthcare, home furnishings, dining out, and car hire are all pricier. The average weekly shopping basket costs higher in Australia, and a three-course meal in a local mid-range restaurant is also more expensive than in the.
Despite the allure of sun-drenched landscapes, potential expats need to consider the financial implications. It would cost an more per year to maintain the same lifestyle in Australia, not factoring in the state pension penalty. British retirees moving to Australia see their state pension frozen, leading to a potential financial setback for those hoping to enjoy their retirement in Down Under.
The decision to move abroad for a comparable standard of living at a lower cost involves careful consideration of various factors. While Spain and France emerge as cost-effective options, individuals must weigh the financial trade-offs associated with relocation, especially in countries where the cost of living is higher than in the UK.