Retirees now a major part of the expatriate demographic

Retiring overseas is now an accepted ritual for senior citizens from both the UK and the USA.

Over the past decades, the world expat demographic has changed out of all recognition. Once the privilege of professionals relocating to far-flung lands in order to further their careers by bringing Western business practices to unsophisticated states, becoming an expat is now the ‘done thing’ for anyone with enough reasons to leave their country of birth. One ever-increasing sector is that of retirees, moving mostly for financial security, better weather and a relaxed lifestyle in a total change of scenery.

According to various surveys, the main reason older people head for new horizons is, quite simply, money. For the bulk of people in the USA and UK, saving money against their retirement is an impossible dream due to living expenses, healthcare, children’s’ education and salaries not keeping up with rising costs of living. Retirement funds, if any, are likely to fall short of what’s necessary, and keeping working until there is enough depends on health in older age. Selling the family home isn’t a solution if it’s been mortgaged to help the kids get through university.

Healthcare in retirement is another problem, with US retirees needing to consider the likely spend even when Medicare is taken into account. In the UK, the free National Health Service is in chaos due to underfunding, and private health insurance is unaffordable for the majority of pensioners. If it weren’t for the get-out clause of emigration to a cheaper country, many British retirees’ lives would be untenable. Comparisons between state pensions in the two countries define locations favourable as retirement havens, with Western style healthcare available in most retirement destinations at far less cost than in the home country.

The average USA pension is around $1,000 a month, whereas the UK state pension is about to be upped to a meagre £500 a month – around $650 dependent on the exchange rate. British retirees head for cheaper European countries such as Spain, with many still living on the edge financially, whilst USA expats have a wider choice of destinations and a better lifestyle in general. Fortunately for the UK expat contingent, Southeast Asian countries are now an option for those with a state pension and some capital, allowing a full life on very little outlay.

The decision to emigrate, rather then trying to manage the decreasing value of a fixed pension income against inflation, is based on finance rather than any other issue. Once that decision is taken and the move is made, expatriates can relax and begin to enjoy their affordable new lives, new friends, and increased number of interests.