George OsborneÃ¢â¬â¢s recent Budget included plans to freeze the personal tax allowance for pensioners. This controversial measure has been nicknamed the Ã¢â¬ËGranny TaxÃ¢â¬â¢ and with further changes set to reduce incomes for pensioners in coming years, leading experts believe it may encourage more Brits to retire abroad.
Keep reading for details of the tax changes and why many market analysts think that increasing numbers of Brits will look to move to overseas property in their retirement years.
Pensioners set to lose hundreds of pounds a year
Recent figures from the Inland Revenue showed that the ChancellorÃ¢â¬â¢s tax changes will leave over 4 million people ÃÂ£83 a year worse off on average in 2013-14 and 360,000 individuals aged 65 set to lose ÃÂ£285 a year on average.
Danny Silver, a leading French property expert, observes said: Ã¢â¬ÅWith benefits axed and British pensioners seeking to protect their retirement funds from government invasions, more Brits will be looking to retire to countries in which they will be taxed less with the forever popular destination of France offering a great escape.
Overseas property specialist HomesGoFast.com agree. He said: Ã¢â¬ÅWith the Government keen to increase the tax they take from pensioners, we expect many more Brits to consider retiring abroad.
Ã¢â¬ÅThe costs of living can often be cheaper overseas. For example, food and restaurants are around 20-30 per cent cheaper in France than they are in the UK. As pensionersÃ¢â¬â¢ incomes reduce they will increasingly look to make their money go further by moving overseas.Ã¢â¬Â
France and Spain remain the two most popular countries with Brits retiring abroad, although the problems in the Eurozone have led many people to consider locations further afield. Australia, Thailand, India and the USA have become increasingly popular over recent months.
Author Nick Marr