As the soaring cost of retiring in the UK is estimated to hit over £400,000, 87% of UK expats are choosing to retire abroad, according to a study published today.
A total of 57% of those polled by Alliance & Leicester International (ALIL) are planning to retire in Europe. France was the most popular retirement destination for 18% followed by Spain (13%) and the UK (12%).
Expats are planning to fund their retirement with a variety of methods including savings (27%), the UK state pension (23%) and private pensions (20%).
Property is a big source of retirement funding with 6% relying on rental income, 6% intending to sell a residential investment and 2% planning to take out an equity release plan.
Despite this, a lack of finance in retirement was cited as a major concern, with 13% of respondents worrying about exchange rates and 12% concerned about having sufficient money to survive.
Lynette Byrne, head of marketing at Alliance & Leicester International, says: "This research really highlights the international nature of society today and raises some interesting questions as to how people are going to manage their finances and protect their savings against interest rate fluctuations."
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