Spain’s property market to attract massive investments from pensioners.

Spain’s property market to attract massive investments from pensioners.

As per the data obtained, it is indicative that majority of the wealth is held among people above 50 and hence, there is a strong speculation that a majority of their investments might be in the Spanish property markets.

Older people looking for a better quality of life are

moving to The Costa del Sol

A travel agency named Silver TravelAdvisor, which is known for conducting holidays among people aged 50 and above, stated that 80% of the private wealth of UK was summed up by people aged over 50 and they are exploring places like Iberia and Spain, which they consider to be a sound investment for their wealth.

Among the Brit expats, 14% of them are located in Spain and the expat portal of Brits known as the Brits Abroad has indicated that the property market of Spain might flood with investments, as majority of the people will be retiring soon and might strongly consider investing in Spain.

People retiring soon are rich on funds and will generally have the liberty to explore the world. However, when it comes to the place where they want to reside from then, Spain is generally the first choice, as per the Director of Kyero, Martin Dell.

Spain offers a variety of advantages, such as the excellent weather, delicious wine, healthy cuisines, beautiful golf courses and it is also rich on the cultural history. It also has sprawling architecture spread all over and has a lot to explore for retired people. The cost of living is also moderate, and people who have a decent affordability consider this to be the best place for retirement.

Despite the relative strength between pound and euro, pensioners from Britain are getting more for their money. As per the building society of UK, Nationwide, the cost of owning a house in Britain on an average is £200,251, equivalent to €255,000, making British to invest more in Spain.

Although there is no clarity about the EU referendum, the Brits are still eyeing on the property markets of Spain owing to the affordability it has to offer and the relatively lower living costs. Even today, Costa del Sol is the cheapest holiday destination in Europe, making it a tourist haven too.

Costa del Sol is now attracting real estate workers to invest more, so that they can cash in on the benefits once the EU debate has been cleared out.

Brexit Could Leave British Expat Pensioners 50k Worse Off

Brexit Could Leave British Expat Pensioners 50k Worse Off

Brits retiring and moving to Spain and to other EU member states are able to claim the same incremental pension they would receive if they stayed in the UK. Things could look very different if the Brexit goes through.

Its looking more obvious that leaving the EU

will have consequences

The current pension agreement in the UK is a “triple-lock” agreement where British pensioners in the EU have their pensions rise with annual rates of inflation. Experts are warning that this could all change if the UK leaves the European Union.

The UK will hold a vote on if they will leave the EU on the 23^rd of June and, should they leave, they will have to strike up new agreements with countries that house British retirees.

The policy that gives British pensioners an incremental increase is an EU-wide policy. The policy says that pensions increase by either wage or price inflation, whichever is higher, with a minimum increase of 2.5%.

If the UK fails to secure an agreement like this with other countries such as Spain, then British expats will find themselves in the same situation that is found in Canada, Australia, and New Zealand. In these countries the state pension is frozen and stays at the rate it was when they left.

As a result a Brit moving to  Spain or an EU country after the Brexit could find themselves up to £50,000 over 20 years according to calculations by AJ Bell. A 65 year-old retiring today would receive £155.65 per week, but 20 years without a rise on that could easily mount up.

AJ Bell warned that a Brexit would cast the aspirations of people wanting to retire in Europe, or already retired in Europe, into doubt. Some have faith that the government will be able to protect British expats if the Brexit goes ahead, but it should be noted that the UK has yet to set up a deal like this with a non-EU country since 1982, mostly because of how much it would cost.

While people who are not expats themselves may see this as one of the many EU-led costs to taxpayers, there is no doubt that anyone who will benefit from this agreement should chose to vote remain so that their pension is protected.

Ross Altmann, the Minster for Pensions, said that it was important to clarify this matter and make it a part of negotiating the UK’s exit if the votes go that way.

If the UK does vote to leave the EU there will still be a two year time period where EU treaties still apply, so there is likely going to be a lot of political back and forth in that time. Shailesh Vara, the Parliamentary under-secretary of State for Justice said that the Conservative Party don’t have any plans to change the current policy wherein British pensioners abroad have their pension payments frozen.

She added that a Brexit would leave a lot of pensioners who have worked hard to secure their future and enjoy their retirement in the dark. With the current rules the UK and Europe enjoy what is called the “triple lock” system that ensures their state pension is protected.

While the deadline for registering to vote by post has passed it is still possible for expats who have lived abroad for less than 15 years to register a proxy who can vote on their behalf at the upcoming referendum.