Recent research into Iain Duncan Smith’s proposed flat-rate pension scheme has shown that where everyday living costs are concerned, average UK retirees could be left facing a monthly £1000 deficit. The proposed pension scheme isn’t scheduled for immediate introduction and will only come into effect as early as 2017.
Whilst Iain Duncan Smith’s proposal that all pensioners should receive a weekly payment of £140 has received quite the varied reception, there are some noteworthy aspects that provide key insight into the scheme’s validity. One such aspect is the fact that, give or take a couple of pounds, today’s pensioners already receive quite a similar amount.
Growing speculation concerning pensioners and their affordability of life four years from now has highlighted some very real causes for concern. The Joseph Rowntree Foundation has contentiously stated that today’s cost of living is close to £1600, which will equate to an approximate £1k monthly shortfall for many UK pensioners and retirees.
As life overseas is generally less expensive, especially in more affordable regions such as South America, many industry experts now foresee a boom in the number of British expat pensioners settling in exotic yet cost-effective destinations. Although moving abroad is a popular option amongst pensioners looking to retire in luxury, there are alternative ways to make ends meet.
Overseas Pension Provision Director David Retikin commented:
“We’ve seen many people over the years simply opting for their company pension plan or savings account to provide for their retirement needs. Very often, pension plan holders haven’t evaluated the performance of their pension plan assets … over the long term, private overseas pensions are much better at providing the growth needed to retire early and still have comfortable income levels.”
Several financial options are available, so British pensioners don’t have to move to the other side of the planet for a more comfortable lifestyle or to enjoy early retirement. Before planning and preparing for a move to somewhere like Spain, retirees should speak with a reputable, reliable independent financial advisor to discuss Qualifying Recognised Overseas Pensions Schemes.
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