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Study predicts hike in UK pensioner migrant numbers as savings dwindle
| Published: | 17 Jun at 6 PM |
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Emigration from the UK is likely to spike within the next few years as increased utility bills and other cost of living rises hit average pension returns and savings.
According to a recent study, the savings rate of average UK households has shown a dramatic fall over the last four years, and is predicted to fall even further between 2014 and 2018. Conversely, the £15,800 p.a. average pension income of UK retirees, including the state pension, is some £3,000 less than in the years preceding the financnial crash and ensuing recession.
In 2010, savings per UK household averaged £4,414, falling to £3,780 in 2011. By 2015, it’s expected to have fallen still further to around £3,518 and, if the decline continues to 2018, will stand at just £2,994. Historically, this low amount was last seen in the 1960s, although living costs were far less at that point in time and wages were lower.
As a result, pension experts are predicting a rise in the number of retirees leaving the UK for cheaper, warmer destinations overseas. However, with investment opportunities declining, frozen state pensions in less expensive Asian countries, increased taxes on second homes in the UK and the possible withdrawal of the £10,000 tax-free allowance , it’s debatable that pensioners on the present £15,800 average would be able to maintain a comfortable lifestyle.
According to a recent study, the savings rate of average UK households has shown a dramatic fall over the last four years, and is predicted to fall even further between 2014 and 2018. Conversely, the £15,800 p.a. average pension income of UK retirees, including the state pension, is some £3,000 less than in the years preceding the financnial crash and ensuing recession.
In 2010, savings per UK household averaged £4,414, falling to £3,780 in 2011. By 2015, it’s expected to have fallen still further to around £3,518 and, if the decline continues to 2018, will stand at just £2,994. Historically, this low amount was last seen in the 1960s, although living costs were far less at that point in time and wages were lower.
As a result, pension experts are predicting a rise in the number of retirees leaving the UK for cheaper, warmer destinations overseas. However, with investment opportunities declining, frozen state pensions in less expensive Asian countries, increased taxes on second homes in the UK and the possible withdrawal of the £10,000 tax-free allowance , it’s debatable that pensioners on the present £15,800 average would be able to maintain a comfortable lifestyle.
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