Text Size:

|
|
Search the Age Concern website

Money

Many people believe that living in another country will cost less than in the UK‚ but it is important to be realistic and research everything involved.

Looking after your finances

Many people believe that living in another country will cost less than in the UK‚ but it is important to be realistic and research everything involved. Find out from people already living there the average cost of utilities and services‚ and any local government charges.  Healthcare in many countries can be significantly more expensive than in the UK.

When examining your finances‚ plan for the future and consider how you would cope with any unforeseen costs. You may be fit and well now‚ but could you afford care or support in the future if you needed it? Will the country you are planning to live in provide you with any support?

As well as looking at your likely expenditure it is important to examine how your income will be affected by a move abroad.


Back to top 

Tax

Tax laws vary from country to country and it is important to get clear‚ professional advice. The Inland Revenue has an International Centre for Non-residents of the UK and can advise you what they consider to be non-resident for tax purposes and which types of income may be taxable in the UK.

what next?Contact the Inland Revenue for information on your tax liabilities within the UK. Find out your tax liabilities in your new country of residence.

 

Read more about your tax liabilities and inheritance tax
 

Back to top  

Pensions

You can receive your state pension in any country in the world‚ but it is important to notify the Department for Work and Pensions (DWP) of your move.

If you move out of the European Union to a country that does not have reciprocal links with the UK‚ your pension will not be index-linked. It will be frozen at the rate at which you were receiving it when you left the UK or‚ if you leave before becoming eligible‚ the rate at which you first receive it.

Occupational and private pension schemes should not be affected in this way‚ but you should contact your pension provider about specific issues and to arrange payment while you are living abroad. The local exchange rate will affect how much pension you actually receive and you must take this into account when predicting your income.

what next?Contact the International Pension Centre of the DWP and your pension provider.

 

Back to top 

Benefits

It is important not to rely on benefits; very few benefits are available while you are living outside the UK and it can be hard to fulfil the criteria for receiving them. However‚ some benefits are exportable abroad and it is important to get individualised information to discover whether you are eligible and to claim any benefits you are entitled to.

What benefits can I take with me?

what next?Contact the DWP or Citizens Advice Bureau for information

 

It is likely that once you are abroad you will want to make money transfers between countries.

Case study

John and Pauline left the UK to live abroad 15 years ago and have never looked back…Case study

‘We thought long and hard before moving abroad but it is something we had always planned to do and when we both retired the time was right. We knew exactly where we wanted to live as we’d been on holiday there for years. We were lucky as we had friends over there who let us stay with them while we looked for somewhere to live. After six months we moved into our new home.

'We both had already mastered some of the language during our holidays here but I’ve really enjoyed going to regular classes and developing my language skills. We now have many local friends and enjoy an active life. Speaking the language also means we can deal with all the regular day-to-day issues such as getting the washing machine fixed and paying our bills.

‘Of course‚ over the years we’ve seen many people come out but move back to the UK after getting into difficulties. We are lucky‚ I suppose‚ we could afford to buy our own home and pay for our health insurance. We have friends and neighbours who are like family.  We know we could rely on them if we needed to. Here’s to another 15 years!’
 

Back to top 

Further information

Freephone
Information Line
0800 00 99 66