This has caused the cost of living to rise dramatically in a relatively short amount of time. As a result, many of the population are being forced to cut back on their spending and reconsider their priorities when it comes to everyday purchases.
This has naturally led to many becoming preoccupied with the immediate concerns caused by the cost of living crisis and failing to consider how it might impact their retirement.
Research shows that for a single person living alone, the cost of a basic retirement has risen by 18%. Your retirement is now estimated to cost around £12,800 annually, compared to the £10,900 needed before cost increases.
The rising costs of energy and fuel make up a large part of this increase, and those hoping to retire in the coming months will probably need to reconsider their retirement plans or be forced to compromise on the quality of life they were hoping to maintain.
The government’s commitment to the pension triple lock means that there will be some increased support for pensioners, as the state pension is set to rise by 10.1% this year. However, this does not compensate for the 18% increase in the cost of retiring and there are also fears that this policy is ‘unsustainable’, as it will cost the government over £9 billion next year alone.
Why Brits Are Looking To Portugal As Their Retirement Destination
Given the current financial situation in Britain and the comparatively low cost of living that can be found in other countries, it’s hardly surprising many Brits are looking overseas for their retirement. Portugal is proving to be an extremely popular choice, and not only with retirees. Many younger expats from the United Kingdom are moving to Portugal to take advantage of the lower cost of living and higher quality of life they can enjoy there.
With the same money going a lot further in Portugal than the UK, and those about to retire facing a shortfall in their funds due to the rising cost of living in Britain, a move to Portugal makes sense. Not only can you enjoy your retirement in a temperate climate surrounded by a beautiful landscape, but the standard of living your retirement savings can buy is far higher over there than it currently is in the UK.
How Can Blacktower Help?
If you are concerned about the increase in the cost of retirement and want to ensure that your retirement plans are still sufficient, we can help.
We can provide a holistic review of your finances and delineate the best way to achieve your financial goals, helping you feel at ease knowing that you’re on the right track to your dream retirement.
Blacktower Financial Management has been providing expert, localised, wealth management advice in Portugal for the last 20 years.
Get in touch with us on (+351) 289 355 685 or email us at email@example.com.