Millions of Britons harbour a dream of relaxing in retirement on foreign shores. Focusing on that glass of rioja served by the sea is a vision that keeps much of the working population sane.
A poll this week captured this. It found that 35pc of those aged over 40 would prefer to reward themselves for a lifetime of hard work in a corner of the Cote d’Azur rather than a quarter of these green and crowded lands.
But more interesting is how the destinations of choice have changed.
A further level of research shown to Your Money by globalvisas.com shows how quickly our old favourite retirement haunts have fallen from grace.
A year ago, Spain was the favourite place in the sun, with 33pc of would-be expats naming it as their number one destination. But it has fallen to fourth spot, with only 23pc favouring it this year
France is now also less loved, with francophiles making up 15pc rather than 22pc of the total.
Portugal’s figure is down from 14pc to 11pc and, as for troubled Greece, it has dropped out of the top 10 altogether.
The list of new destinations topping the leaderboard speaks volumes about the reasons for the shift.
America is now most popular, followed by Australia and Canada. The first acutely felt the global financial crisis but the citizens of the other two have been spared the worst.
In contrast, Spain, Greece and Portugal have been knocked for six, with their debts ballooning and their economies buckling.
The dream of the Costas has turned into a nightmare for many of the hundreds of thousands of Britons who relocated there.
Property in France is tempting but the OECD estimates that is substantially over-valued
Some of the anguish is directly linked to the financial crisis, such as the scarcity of work. Other effects have been more subtle. Take pensions. Because Britain has the ability to weaken its currency to help exports, it has done so (eyed enviously by many in the eurozone unable to do the same).
But as the pound sinks, so does the buying power of the personal and state pensions paid to millions of Britons abroad.
Austerity measures are also making expats nervous. The loss of the £300 winter fuel allowance for those retired in the sun, announced this week, will seem trifling if asset seizures materialise. The Spanish government, for example, has demanded that all expats disclose assets they hold outside the country, if worth more than £50,000.
Some see it as a portent for a wealth grab, as seen in Cyprus.
Tumbling house prices have been the final blow to those in Spain who feel forced to sell up and head home.
In France, austerity has persuaded the government to tax its wealthy citizens – and foreigners – more rigorously.
Thousands of Britons are heading home, and many other Europeans are moving. Last year 37,000 Spaniards headed for Germany, while 35,000 Greeks followed them.
This trend has probably gathered pace in 2013, with unemployment continuing to rise in southern Europe.
But Britons remain indifferent. Once again this year, Germany only just makes the top 10 in the desired retirement destination list, with only 8pc expressing an interest.
Maybe it’s time for a location rethink for those wedded to a retirement abroad.
Germany has also shimmied nicely through the recent turmoil, and it avoided the property boom and bust. Yet it has the second lowest house prices of any Western nation, according to the OECD, which estimated that German prices were 20pc too low (and around 35pc too high in France - see below).
Germany may lack Spain’s stunning beaches or France’s perfect summer climate. But to buy cheap property where economic prospects are strong, taxes most likely to remain low and society cohesive, perhaps Britons should consider developing a taste for riesling over rioja.
- money@telegraph.co.uk
沒有留言:
張貼留言