A report by Alliance and Leicester International, found that Brits living abroad, who have properties in the UK, are considering equity release to fund their retirement. Of the individuals sampled just 13% intended to return to live in the UK, with an astounding 88% planning to spend their retirement abroad. The report found that of these Brits that were intending to retire abroad many were considering equity release as a way to extract equity in their UK homes to fund their retirement.

With the ever-increasing costs of retiring in the UK, it seems understandable why people are considering alternative (warmer) climates to spend their days. The two most popular destinations for the majority of respondents were France and Spain in order to stay close to relatives living in the UK. Interestingly, people plan on relying on a number of assets for their retirement. 27% felt that they would use savings, 14% use rental income or property, 20% will rely on their private pension while 23% will use the UK state pension. Equity release was also cited as part of the retirement plan for a small proportion of Brits retiring abroad.

Brits have also suggested that they are concerned about the fluctuating exchange rate and that they may run out of money while they are abroad. Finally, over and above the financial aspects of retirement, Brits have also reported that they are concerned about the quality of medical facilities abroad. Which is more of a consideration as they get older.