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 info@blacktowerfm.com.