Retiring in sunny Spain is a goal for many people. In the UK, it’s one of the top retirement destinations, with many being attracted by the warmer weather. But to achieve this, you need to carefully plan to ensure you don’t get caught out by any surprises. Below, we explore how to prepare your future retirement in Spain.
How many Britons live as ex-pats in Spain?
Recent figures suggest that almost 366,000 Brits are currently living in Spain. From June 2019 to June 2020, this figure increased by an additional 5.8 per cent. With an ever-growing British community out there, Spain is clearly a go-to place for retirement. But how do you prepare for this future?
Work out how much income you’d need
The first step is to work out how much income you’d need to live comfortably. When most people retire, they have to get used to a different, lower income pattern. To make this process easier, you should work out your monthly expenditure in advance. For a start, how much will your property cost? Do you already own a house out there, or will you be paying monthly rent or a mortgage? On top of this, you should plan ahead for how much groceries, utility bills and entertainment costs will set you back each month. By understanding how much you’ll be spending, you can calculate the income you’ll need.
Work out your retirement income
Understanding how much money you have at your disposal is key for planning. Ideally, you’ll calculate this two years in advance of retiring. You can begin by getting your state pension statement sent across – this gives you an estimate of your state pension based on your National Insurance contributions. You should also check your funds in your pension pot, alongside your savings to see how much you have prepared. Put together, you should be able to work out your monthly income based on this.
Assess your income options
Consider your other income options to supplement your retirement income too. This could include part-time work, or money freed up from selling your property in the UK. Any savings or investments could help bolster your retirement fund too.
Get professional help
In some cases, speaking to financial planning professionals could be beneficial too. By getting advice from experienced professionals you could create a rigorous plan to ensure that you can retire comfortably. This can help you synthesise your goals and needs to prepare you for retirement.
Retiring to Spain can be daunting to plan. But by carefully establishing your expenditure and income you should gain a clear picture and get started on the journey to a relaxing retirement.