Is emigration really the answer to austerity

The reality of austerity in the UK and the realisation it’s not going to improve in the near future is tempting many to uproot their lives and move overseas.

The British economy’s giant black hole has resulted in tax upon tax being piled on top of cost of living increases and the decline in public services. More UK citizens than ever before are choosing not to continue bailing out the economy with their hard-earned cash, and are searching for the perfect expat destination.

Opting out and moving abroad is a tempting solution to the choice between heating and eating facing many UK state pensioners, but it’s wise to check every aspect of costs in your chosen country. Basically, there are few affordable world destinations left and ‘cheap’ is a comparative term relevant to expat incomes.

Many would-be migrants rely on the sale of their UK home to purchase a home in their chosen destination, correctly assuming that, after a few years, they’ll be ahead of those who’ve decided to rent. Realistic valuations of your UK property and careful examination of the extras such as fees and taxes involved in property transactions abroad can achieve a balance as to the amount left after the home is bought.

For those on pensions, currency exchange and fluctuations can rip a hole in even the most careful budgeting, as do regular transfer fees and other charges from UK bank accounts to accounts in the new host country. Those with occupational pension would do well to consider a QROPs transfer overseas, but only when they’ve checked the legality, validity and qualifications of their financial advisor, as the sector resembles the Wild West in most expat destinations.

Checking the quality and cost of healthcare as well as the day-to-day living expenses in overseas expat havens is essential, and adjusting to local foods and services can save a considerable amount of money. Visa and insurance costs are other factors which should be taken into consideration.