Economic difficulties may be causing older people's interest in moving abroad to dwindle, new research suggests.
According to research conducted by M&S (LSE: MKS.L - news) Money , only six per cent of Britons between 50 and 70 years old are thinking about retiring abroad.
While one in 10 people agreed that they would like to purchase a second home for holidays, most people interviewed said that they had no interest in moving permanently overseas after they finished working.
When asked what travel they would like to do in ther old age, the largest group - 44 per cent - said they would prefer to take a holiday of no more than two weeks, while only five per cent said they would consider travelling for between six months and a year.
Appetite for travel appeared to shrink as people grew older.Those aged aged 50-60 who were interviewed for the survey were signficantly more willing to travel for six months to a year (8 per cent) than those aged 61-70 (5 per cent).
The survey results went against previous research undertaken by the Institute for Public Policy Research in 2006, which estimated that one in five people would be retiring overseas by 2050.
Colin Kersley, chief executive of M&S Money, suggested that the apparent decline in interest in living abroad could stem from the difficult economic circumstances of the past few years putting "pressure on people’s pension pots."
John Jory, director general of lobbying body the Centre for Retirement Reform , agreed, saying that people looking to retire in 10-20 years, particuarly low to moderate earners, were likely to be far worse off than those currently retiring, which could impact upon their plans. "During hard economic times, such as we are currently experiencing, people are more cautious and less adventurous. This probably accounts for why fewer people expect to retire abroad or travel extensively in retirement.”
Michelle Mitchell, charity director of Age UK , said: “There are many reasons why people may prefer to retire in the UK rather than move abroad. Social ties, such as staying close to family and friends are likely to be important factors in deciding to stay in the UK, as well as potential economic constraints which may make retiring abroad financially difficult.
“Ultimately, wherever people decide to retire it is vital that they have a good quality of life, which includes having access to quality health and social care, receiving an adequate pension and having access to vital local services. All these factors are hugely important in ensuring that people enjoy their retirement."
Source: The Telegraph