Britain's retirees will flock overseas as a result of last week's budget, according to deVere Group.
The international advice firm warns the scrapping of the age-related personal allowance will mean there will be fewer incentives for people to hold pensions in the UK.
Pensioners will transfer their pensions to sunnier climes "to protect their retirement funds from the government's on-going raids" says chief executive Nigel Green.
From this April, the first £10,500 of income will be tax free for individuals aged between 65 and 74, and £10,660 for those aged 75 and over. But from 6 April 2013, the personal allowance will be frozen for current pensioners and not available for anyone retiring after that date.
HMRC figures show in 2013-14 over 4 million people will be worse off by £83 a year on average. Within the total, 360,000 individuals aged 65 will lose £285 a year on average.
Green said: "With this benefit being removed, and as people seek to protect their retirement funds from the government's on-going raids on the money they have prudently put away, more Britons than ever will be looking to retire to countries in which they will be taxed less. And they will take their pensions with them - surely not the government's intention. Or is it?
"We fully expect English-speaking, EU countries such as Cyprus and Malta to be increasingly popular destinations for those who want to enjoy their retirement in the sun, and who want to safeguard the money they have been putting aside all their lives."
The budget also confirmed final legislation on QROPs. Green said this was "evidence that transferring pensions is becoming increasingly mainstream."
But AXA Wealth's head of pension development, Mike Morrison said: "I cannot see why people would want to go abroad. The government did not touch pensions tax relief and they tightened up on QROPs. [And] the amounts [i.e. that people will lose when the personal allowance is streamlined] are minimal on an annual basis, so I do not think that would affect anybody.
"I'm hopeful that the new QROPS regime makes QROPs more sensibly monitored and stops people from exploiting [the] rules, but I cannot see why any other element of the budget would immediately encourage people to want to take their pensions overseas.
"I think people would wait and see what the QROPS jurisdictions offer but the rules have been more tightly written to try to make the QROPS regime what it was supposed to be-. for people leaving the UK to maximise the flexibility of taxation. Other than that I cannot see any other real hooks. "
Research conducted by National Association of Pension Funds' (NAPF) in February found almost half (46%) of pre-retirees would consider retiring to a cheaper country to get better value for money
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