Can you move?

A desire to emigrate will not always be enough. Some countries simply do not offer emigration routes for retirees. While British citizens should be able to live in any other EU country, they will need to show they have the financial resources to be self-supporting and not dependent on the welfare state of that country. This could be proof of pension or other savings and investments. They would also need to take out private health insurance.

Australia is one of the few non-EU countries to offer retirees an emigration route – but only for those with deep pockets. To net a temporary four-year retirement visa, an over 55 would need to have assets valued at between AUS$500,000 and AUS$750,000 and access to a minimum net income of between AUS$50,000 and AUS$65,000.

Temporary residences

If you can’t move permanently, it may be worth checking out how long you can stay in a country on a temporary visa; in many popular emigration destinations it can be up to six months in a calendar year.

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If this is the case, maybe consider buying a property in another country and then splitting your time between the UK and your ‘second’ home. Florida and Spain are both popular destinations with second home owning Brits for this purpose. However, by doing this you may lose access to some benefits and not receive things like health coverage in the ‘second’ country.

Transferring assets

If moving permanently, you will need to consider what to do with your financial assets. Many will want to transfer their cash holdings but, depending on the exchange rate at the time, may choose to leave a portion back in the UK pending an improved rate (see below).

One of the biggest considerations will be what to do with your pension. While most countries will allow you to transfer your state pension, you may find that the available transfer value of your pension will be less than the actual fund.

You may also find, especially outside of the EU and the US, that your pension will be frozen at the value you first draw it or, if you are already drawing it, at the value you are receiving at your date of emigration.

This means you will not receive the same annual cost-of-living increases as pensioners still living in the UK. All countries in the EU have Reciprocal Social Security Agreements meaning that the transferring of your pension is a far more straightforward matter than it is when emigrating further afield.

Exchange timings

You should start thinking about exchanging pounds for the currency of your intended destination early on in the emigration process.

The exchange rate you secure for transferring large sums will have a huge bearing on your spending power in your new homeland. Forget moving money through high street banks; the best exchange rates are available through currency exchange specialists.

These companies can arrange ‘forward contracts’, allowing you to secure a good rate of exchange up to two years in advance. Such an arrangement can mean peace of mind as you know your nest egg is protected from any devaluation of the pound.

Expert advice

Before making a decision about what to do with your pension, or indeed any other assets you are thinking about transferring, it is essential that you first talk to a financial adviser who is fully regulated in both the UK and the country you are intending to emigrate to.