As the cost of living goes higher and higher in the UK so more people are looking at retiring to a different country say Saga Insurance.
A Saga Insurance spokeswoman explained that currently less than 1 percent of those retiring move abroad in order to cut their living costs, though there has been much more interest in the idea recently. It will help those about to retire that their property values are at all time highs. This gives them a good base from which to set up home abroad.
There are many factors to consider when living abroad said the Saga Insurance spokeswoman, with costs being just a part of the equation. Lifestyles are very different overseas and it can sometimes be difficult giving up things that have been part of life for so long.
According to the Prudential retired people have substantial assets and savings although they are not maximising them to aid their standard of living.
On average retired couples have almost GBP270,000 in assets and savings whilst single pensioners have half this amount. However, even though they have these large funds at their disposal, less than 20 percent of them have sought professional financial advice. A Prudential representative was amazed at these findings, feeling that pensioners were missing out on perhaps thousand of pounds extra by better using their money.
Even ignoring the value that people have in their homes a retired couple still has around GBP135,000 in accessible funds. This money should be made to work harder said the man from the Prudential and deliver a better standard of living.
Starting from Monday 11 August the Prudential is going to decide annuity rates based on where people live, using their postcode as a guide.
A persons postcode can suggest expected life expectancy and typical health backgrounds of people, leading to the Prudential being able to offer rates that will better match the risk with the amount offered. Those in areas of lower life expectancy and poorer health will be likely to receive bigger pension payments from their annuity since they will be expected not to live as long as someone in a better area.
A Prudential spokesman said that the postcode is an excellent way of determining risk and pension payment since everyone has one. He went on to say that the postcode would make a difference of only 5 percent when comparing highest pension payments to lowest, with other factors also being taken into account to determine the most suitable amount.