Retiring to Spain – pensions in Spain and other advice
Thousands of older people dream of retiring to Spain and seeing out their golden years under the golden sun. Before doing so you must find out what happens to your pension in Spain, and think seriously whether life in Spain is for you.
Retiring to Spain – the benefits
Retiring to Spain, and the warm climate, active lifestyle and diet, can lead to improvements in various ailments and a higher quality of life.
Is it not better for you and your partner to be collecting your pensions in Spain rather than queuing in the rain for your local post office to open?
Retiring to Spain – the drawbacks
A number of couples also found life in Spain was not what they expected. The main barrier they encountered was a failure to fully discuss the implications of retiring to Spain before taking such a dramatic step. Problems may arise when relatives and close friends are left behind and in some cases the retiree emigrants are overwhelmed by homesickness.Before setting up home in Spain there are a number of things you should consider before deciding whether life in Spain is for you.
- Rent a villa or apartment in your chosen area for a few months before committing to buy. This allows you to experience living abroad and see how homesick you are.
- Visit at two different times of year if possible. This will give you a flavour of what life in Spain is like when resort areas are quiet in winter.
- If either you or your partner suffers from ill-health you will need to consider the availability and proximity of medical services.
- Think about what type of environment you want to live in; coastal, rural or urban and what type of property (apartment, villa, complex etc) you desire.
Pensions in Spain and other information for those retiring to Spain
If you have decided to say yes to retiring to Spain here is a guide to some of the steps you should take before jetting off.
You can still get your UK State pensions in Spain and should receive yearly increases if you are moving permanently. Contact your local social security office to complete the correct forms.
You should also write to the Pensions Service to tell them you are moving abroad and give them your new address. Extensive information on your rights to pensions in Spain can be obtained at ´Uk in Spain´, a government website which provides information for those moving from Britain to Spain.
If you want to access your UK state pensions in Spain you will need to complete a claim form from the Pensions Service. Personal and company pension schemes can usually be paid anywhere and it may be a good idea to transfer your pension fund abroad. This would eliminate any exchange rate risk although all such international transfers must be approved by the Inland Revenue.
You should note that your pensions in Spain may be subject to taxation. Again, it is advisable to consult a professional to reduce the amount of your pensions in Spain liable to tax.
