Retire to a place in the sun
An increasing number of us are retiring abroad, drawn to warmer sunnier climates where our pensions will stretch further, or to be united with children or grandchildren who have settled abroad.
More and more Britons are being increasingly willing and able to spend their retirement overseas, but how easy is it to retire abroad and where are the top destinations?
Figures from The Department for Work and Pensions show that from the 1m pr Britons who have a pensions paid to them abroad, the most popular location, with 242,560 is Australia. In Canada, there are 155,120; in the USA, 128,970; in Ireland, 104,270; in Spain, 79,560. New Zealand, Italy and France are popular so are Cyprus and Malta.
AUSTRALIA
Getting a visa 
Despite historic ties with the UK, obtaining residency isn’t easy. The easiest (and cheapest) method is to apply for one of the various Family Reunion visas, which require a relative living in Australia to sponsor you. For those aged 55 and over, they cost about £30,000 a couple. If you are over 65, with family in Australia, you can apply for an aged-parent visa; it’s free, but there is a waiting list. Over 55 and no relatives there? Try an investor retirement visa. You renew it every four years, and must have assets of at least £312,000 to invest.
Property prices
They vary but are generally lower than in Britain. Non-Australian citizens or those without permanent visas can buy only new-build property. A one-bed flat in Perth, on the west coast, will cost about £100,000. The same in Sydney will set you back £150,000.
Climate
North, it’s the steamy tropics; further down the eastern seaboard, where most of the 20m population lives, winters are cool and summers hot and slightly humid.
Health care
Those on Family Reunion visas are eligible for Medicare, the Australian equivalent of the NHS. Others need private cover.
Finances
A British pension is not index-linked if you live in Australia, so it won’t rise with inflation.
Getting there
Off-peak flights to Sydney start at about £650, rising to £1,400 for peak season.
Total score: 6/10 – great if you have family there or can afford to do it
CANADA
Getting a visa
Adult children living there can sponsor parents, or you can sign up to the Immigrant Investor Programme, for those with business experience which requires a returnable deposit of £187,000.
Property prices
Average house prices are about £140,000. On the west coast, in Vancouver, the biggest city, the average price is £264,000; in Quebec, it’s £76,000.
Climate
Like the British, Canadians love to discuss the weather. There are four distinct seasons: in winter, temperatures can hit -25C; in summer, 30C is not uncommon.
Health care
Holders of British family-sponsored and investor visas qualify for state health care. The system is administered locally, so services vary; in some cases, you will pay extra for certain procedures.
Finances
There is a two-tier system of provincial and federal taxes. The top rate of federal tax, 23.51%, applies to incomes of more than £93,404. Provincial top rates range from 10% to 18%. British pensions are not index-linked, so will not increase in line with inflation.
Getting there
Flying to Canada has become cheaper. British Airways and Air Canada offer off-season returns from as little as £374.
Total score: 7/10 – be prepared to invest in your new country
USA
Getting a visa
British retirees can legally spend up to 90 days in the US
without a visa, or up to 180 days with a B1/B2 visitor visa. Many British “snow birds” own holiday homes in winter-sun destinations to take advantage of this. To stay longer, you need children who are US citizens, in which case you can seek an immigrant visa, or you must make a “substantial” investment to start a business that provides an income to support you and your family. This will allow you to qualify for an E-2 visa, which lasts as long as the business does.
Property prices
A weak dollar means that in the past year, for Britons, the cost of buying property has plunged by 11%. The market is unsettled – in Florida, it’s in free fall. If you are moving permanently, you’ll be able to drive some hard bargains.
Climate
As varied as the many states. Extremes are usually greater than in Britain, so you’ll get “proper” winters and long, sunny summers. In Florida and Hawaii, it’s warm all year.
Health care
Contrary to popular belief, there is state health care, but coverage is limited and anyone who can afford it takes out private cover, the cost of which is high. Buying through an American insurer means faster emergency care and makes it easier to recoup expenses; however, some insurers will only accept foreigners who have lived in the USA for one or two years. Whatever policy you get, ensure it is “admitted” in your state of choice.
Finances
You will be liable to pay income tax, but the top rate, 35%, kicks in only above £186,000. Watch out for local taxes, which can add a lot, but vary from state to state.
Getting there
Off-season, from about November, you can fly to Miami from about £500. In peak season, the price can be nearer £1,500.
Total score: 6/10 – just don’t get ill
IRELAND
Getting a visa
No need – it’s in the EU.
Property prices
The average house price was £211,000 in March, according to the Irish Permanent TSB/Economic and Social Research Institute index.
Climate
Temperate, but the Emerald Isle is green for a reason.
Health care
Universal public health care; users pay a proportion of the costs, capped at £41 per night or £410 per year.
Finances
Married couples over 65 are exempt from tax on incomes of up to £26,000. Above that, the rate is 20%.
Getting there
Cheap flights abound. Ryanair flies from the UK to Dublin from £45.
Total score: 7/10 – a civilised pace of life, but pack a raincoat
SPAIN
Getting a visa 
No need – it’s also in the EU.
Property prices
On the Costa del Sol, a nely built two-bedroom flat in reasonable condition costs about £205,000. The northern Costa Blanca is comparable in price, but on the southern Costa Blanca, prices are lower: about £137,000 for a similar property.
Climate
Lots of sunshine, mild winters and little rain on the costas.
Health care
British retirees registered in Spain can transfer to the Spanish system. Early retirees get free health care for two years, but may then need private cover until they qualify for a UK pension.
Finances
UK state pensions are index-linked for Spanish residents, but you will be liable for income tax, with a top rate of 43%.
Getting there
A host of budget flights from British cities – but book well in advance for peak season or you could pay £400 return.
Total score: 9/10 – but don’t forget to do the paperwork
As featured in The Sunday Times - May 2007
