Spain has been found to be the most popular choice for the dream place to retire if money was no object. A survey has found 41 percent of respondents would like to head to the southern European country when they finish working, which is cheaper in terms of the cost of living than the UK.
Property experts at YourOverseasHome.com asked their customers to say what would be their dream retirement location.
Christopher Nye, senior content editor at the group, said: “It shows that exotic isn’t the biggest selling point.
“Spain has all the advantages of warmth, sunshine and lower cost of living, but it’s easy to reach all year and has an amazing social life waiting for you too, in its friendly expat communities.”
The second most popular location was Italy, which was chosen by 16 percent of people, followed by France, Cyprus and Portugal.
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Mr Nye said an increasing number of Britons are looking to retire abroad. He explained: “Retiring overseas has never been more popular.
“As 65 has become the new 50, people are realising that a move to a warmer, more relaxed lifestyle in the sun is an incredible opportunity for fun and adventure in later life.
“Post-Brexit procedures have been simplified, making a move abroad easy and cost-effective and a UK pension goes a lot further in most of our favourite overseas locations.”
People planning their pensions had some good news in this week’s Budget as the pensions annual allowance is increasing from £40,000 to £60,000 in April.
The allowance is the amount a person can save into their private pensions each year without paying tax.
The minimum tapered annual allowance for high earners is also going up from £4,000 to £10,000 in the new tax year, while the adjusted income threshold will increase from £240,000 to £260,000.
The Government is also scrapping the pensions lifetime allowance (LTA). Jonathan Watts-Lay, director of WEALTH at work, said: “The fact that the LTA has been abolished is excellent news for pension savers.
“Those who have previously chosen to opt-out of their workplace pension scheme for LTA purposes, and taken cash in lieu of their employer pension contributions, should consider reviewing their situation.
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“This is especially important for those who have taken out LTA protection measures, as if they decide to contribute again, their protections would be lost, and this could then impact the amount of tax free cash they are entitled to.
“Therefore, it’s not necessarily a straightforward decision and it will depend on individual circumstances.”
The state pension is also increasing next month with payments for the basic and new state pension to increase by 10.1 percent.
This means the full basic state pension is increasing from £141.85 a week to £156.20 a week.
Those on the full new state pension will see their payments go up from £185.15 a week to £203.85 a week.
Tom Selby, head of retirement policy at AJ Bell, said scrapping the LTA is a huge help to pension savers.
He said: “After over a decade of persistent cuts to pension tax relief, Jeremy Hunt today reversed that trend by providing a massive boost to savers.
“The decision to scrap the lifetime allowance is monumental, ridding the pensions system of one of its biggest sources of complexity and massively raising the attractiveness of retirement saving.
“As a result, someone contributing £60,000 a year for 30 years could build a retirement pot worth £3.5 million, with only income tax to pay on withdrawals above the tax-free cash entitlement. Pensions can also be passed on extremely tax efficiently on death.”