Half of pre-retirees (46%) would consider retiring to a cheaper country to get better value for money, according to a survey from the National Association of Pension Funds (NAPF).
The majority of those taking part in the survey (60%) did not expect to be able to retire in comfort in the UK. Only 15% think they will.
And a quarter (24%) of those aged 55 to 64 would rather retire overseas than pay more into their pension in order to live in the UK.
Joanne Segars, NAPF chief executive expects a "grey flight as people try to squeeze the most out of their pension."
Less than half the workforce is saving into a pension, meaning people will increasingly use a move abroad to stem the savings gap.
Spain, Canada and Cyprus are popular choices for retirees, but NAPF believe as more people hit retirement with slim savings, they will increasingly opt for more far-flung destinations.
Segars adds: "Those with strong savings have a lot of options. But more and more people will retire only to find that the state pension and their savings don't get them very far. They've got a choice - stay here and see their standard of living slump, or get a better deal by emigrating.
"Of course, a retirement isn't all about money and there are questions of language, culture and family ties. It would be terrible if people felt priced out of their country."
However, retirees may have other factors hitting their finances abroad.
Rex Cowley, principal of New Dawn consulting says: "One key consideration is the state pension and whether they will continue to receive indexation or not - it goes up with inflation so as not to lose its purchasing power. This depends on the country you move to. For example indexation applies if living in Spain but not in South Africa.
He adds: "Currency is another big issue - yes a strong pound is ideal when abroad but currency fluctuations have a market impact on the real value of your money.
"Pension income should at least in part come from investments in the same currency as your expenses but the reality is many will be relying on Sterling investments or state pension paid in Sterling.
"Interest rates in most emerging markets are far more favourable than the UK. Brazil and South Africa both offer rates on savings at around 8% which makes bank deposits attractive for income provision. Having some income in local currency is important when considering living abroad."
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