A RECENT survey carried out by the Bank of Scotland International has placed the number of Brits claiming pensions in Spain at 75'000.
Spain follows closely behind Ireland, the USA, Canada and Australia where it is estimated that 245'000 British people are claiming pensions. According to the Department for Work and Pensions, one million Britons receive their pensions abroad. It is also expected that more than 3.3 million British Pensioners will join the silver flight by 2050, if current trends continue.
Spain also comes in fifth place when British pensioners were asked where they would most like to retire to abroad. Over one in ten responded that they would most like to live in New Zealand (11%), followed by Australia (7%) and Canada and France (6%) and then Spain (5%).
Just under one third of pensioners have considered moving abroad the age least likely to consider moving abroad compared with 45% of 25 to 44 year-olds and 49% of 45 to 54 year-olds. Similar results are found when the number of Britons wanting to live overseas in Spain are considered. Almost two thirds of people (65%) who would most like to live in Spain were under the age of 55 with just 22% over the age of 65 years. Although the numbers of over-65s relocating to the country continue to increase, it appears that buying property in Spain is no longer only a luxury afforded to the older generation, according to the Banco Halifax Hispania.
Ian Smith, head of European Operations at Halifax, said: It has long been assumed that only retirees are buying property in Spain, but this is far from the case, as it is also a popular location amongst younger age groups. Pensioners who are moving abroad might want to consider that receiving their state pension within EU countries such as France and Spain will continue to see their pension increase in line with inflation. However, this is not the case for those people who retire to countries such as Australia, Canada and New Zealand. In all cases, non-UK residents will have their pension income taxed in the country in which the person lives.