RETIRING TO ALANYA

Am I Mad to Retire to Turkey?

Tell people you’re retiring to Spain and not only will people understand the reasons behind your decision, but chances are they’ll know someone else who’s done the self same thing or maybe they’ll even be thinking of following in your footsteps…but tell people you’re retiring to Alanya, Turkey and your decision will be met with so much derision that you’ll start to ask yourself ‘am I mad to retire to Turkey?’

But don’t begin doubting your decisions just because others are slow to catch on to the wealth of opportunity that Alanya represents for retirees – simply read the five key reasons outlined in this article about why retiring to Alanya, Turkey is such an excellent choice for an increasing number of retirees, and then you can reel off the reasons why you’ve made the decision to become an expatriate in Turkey to anyone who questions you!

1) Property in the most desirable Mediterranean resort of Alanya – remains affordable. Many British and Western European retirees have built up a considerable amount of real estate related wealth in their current home to allow them to sell up, head to Turkey and buy a comfortable apartment or a detached villa home within easy distance of all essential amenities and facilities because property in Alanya is incredibly favourably priced.

The fact that the wider world is beginning to see the attraction of Alanya, Turkey means that property prices are starting to lift nicely – therefore if you do retire to Alanya today and decide in ten or fifteen years time that you’d like to move on or even move back to your country of domicile, you’ll be able to resell for a handsome profit and ensure you can live comfortably in your next location too.

2) The cost of living in Alanya is so incredibly attractive. Local produce is sold in weekly markets even in the most expensive resorts at very low prices, and if you always favour markets and smaller vendors of everything from your daily bread to your Sunday joint you will save so much money over supermarket prices and not only that, if you establish a rapport with such vendors you will always be well looked after.

Even expensive items such as cigarettes and alcohol are cheaper in Turkey especially if you buy local wines, beers and spirits for example…and when it comes to household goods, pretty much everything you can think of from the material for your curtains to the washing machine in your kitchen is manufactured in Turkey, so again – stick to local names and you’ll save so much money!

Eating out is often cheaper than cooking for yourself at home; petrol, electric and water are cheaper in Turkey than in the UK for example and if you’re on a tight budget in retirement you can work far more comfortably with that budget in a low cost, high quality country like Turkey than you ever could in Spain for example.

3) Politically speaking Turkey is a stable democratic nation and socially speaking the Turkish people are very considerate towards their elders. There is a vein of respect that runs through the nation from parliament right down onto the street and not only are Western retirees welcomed into the community they are often befriended and looked after by their Turkish neighbours. No one need ever feel isolated in Turkey and even if you pick up no more than the basics of ‘please’ and ‘thank you’ in Turkish your local neighbours will go out of their way to help you. For some people this is initially overwhelming and Britons especially feel they have to return every compliment or meal or small gift given – but that is not expected…what is expected is that anyone moving to live in Turkey fits in and respects the community around them which involves no more than a friendly ‘hello’ and the occasional shared cup of coffee for example. In practical terms and as a bottom line what this means is if ever you are in the slightest difficulty all you have to do is ask and help will be given

4) The climate in Alanya (Southern Turkey) is pretty much perfect! The temperatures never fall below freezing in the winter and even in the summer when the thermometer can reach the high thirty degrees centigrade there are cooling breezes from the sea that take the edge off the heat. Precipitation is not excessive even in the winter and anyone who suffers from cold or damp related ailments such as arthritis will almost always witness an alleviation of their symptoms.

5) Now that Alanya is becoming so well known as an exciting and interesting place for a holiday, as a good place to invest in property and also as an emerging nation approaching EU membership in the medium term, the accessibility of the nation from across Europe and beyond is improving. You can get cheap flights to Antalya International Airport meaning that it is an easy country for friends and family to visit you in and what’s more, taxis, buses and internal flights are all also highly affordable meaning that when you retire to Alanya you can still afford to explore the rest of the stunning and fascinating country even if your pension income is not as favourable as you’d like.

In conclusion – no, you’re not mad to retire to Alanya – you’re simply innovating and leading where others will no doubt begin to follow in greater numbers in the short to medium term. In the future it’s highly likely that Alanya will become a favourite location for retirees simply because of the reasons listed above, which let’s face it are far from exhaustive – meaning that when people learn even more about the delights of Alanya, there’ll be a wave of inward migration so you’d better get in first and secure your location!

A Simple Guide to Retiring Abroad and Your Pension

If you’re anything like me then just the mere thought of wading through reams of information about pension contributions, tax on pensions or all you need to know about the state pension if you want to retire abroad has me running for the hills. Pensions, tax, all things essential and financial are often decidedly boring after all – but then on the other hand there’s that little voice inside telling us that ignorance is no excuse when it comes to tax and that we really have to get a handle on all this pension stuff to get any financial benefit at all…

So here’s an essential but simple guide to retiring abroad and your pension so that you can avoid much of the jargon, many of the pamphlets and all of the lectures from your relatives and friends and just get to the heart of the matter which is – are you going to be able to afford to live abroad in the lap of luxury when you retire?!

Forewarned is Forearmed

If you’re a little way off retirement and are in the planning stages of the whole ‘moving abroad thing’ then you can begin by getting what’s called a pension forecast from the Inland Revenue. This will tell you how much you can expect to receive from the State when you retire.

If you have a private pension scheme as well (also known as an occupational or personal pension) then you should be in receipt at least annually, of an update on what you’ve got saved and what that should roughly equate to when you retire - assuming you continue contributions and that neither inflation nor the stock markets do anything too dramatic.

Remember that both the Inland Revenue forecast and your personal pension statements only give a guideline and cannot be relied upon to be 100% accurate!

Depending on how far off retirement you are, with all this information to hand it could be well worth you speaking to a financial planner. You may wish to discuss continuing or increasing contributions to get your UK pension up higher ready for when you pack your bags and move to the sun, whether you should be looking at an overseas pension and/or how best to structure your finances after you retire.

Personalised Advice on Pension Contributions

If you do decide to recruit the expertise of a financial planner then you must ensure they are properly qualified and regulated, that they have experience and are independent and what’s more, you must make sure you are comfortable with any advice they give you. As a rule of thumb, the closer you are to retirement the less risk you should take on in terms of your investment strategy because you do not want to put your pension pot at risk and have to potentially delay your retirement.

If you’re retiring early you may still want to contribute into your pension before drawing down from it. Many laws and rules relating to pensions changed in April 2006 to make it more attractive for people to continue to contribute to alleviate the burden on the State, and so in certain cases you can still contribute and enjoy tax relief on contributions for up to five years even after you move abroad. Naturally this all depends on your own personal circumstances, which is why seeking personalised advice is a good idea.

Retiring Abroad and the State Pension

If you’ve been paying into the UK State pension pot you can claim your pension when you reach retirement age even if you’re living abroad as long as you live in a country in the EU or in a country with which the UK has a reciprocal agreement. This list can change and you should contact the Pension Service to find out all about the rules relating to your State Pension and the country in which you’ll be living.

The UK State Pension has inflation beating increases from time to time and if you retire to certain countries in the world you are not entitled to these increases which is oh so wrong and being fought against, but at the moment it is so.

You really need to seek information from the Pension Service relevant to your personal plans and circumstances and they can be found at http://www.thepensionservice.gov.uk/ or contacted by telephoning 0845 60 60 265 or clicking on the Contact Us page of the above website.

Retiring Abroad and Private Pensions

If you have any form of personal, private or occupational pension scheme there should be nothing whatsoever preventing you receiving your pension no matter where in the world you want to retire to. Although having said that, do just check with your pension provider - you never know what ridiculous clauses these financial companies could come up with to scupper your plans.

A common issue that you might come up against is that they will not pay into an offshore or an overseas account or that you will have to pay charges for them to do so – and remember that if you’re banking abroad in a different currency you might suffer adversely with currency fluctuations. This is especially worth thinking about if you take a lump sum from your pension pot.

You can protect yourself against currency risk and now that many more people are buying property abroad as well as retiring or living abroad there has been an upsurge in the number of FX companies appearing who can help you. Again, when entrusting your finances to anyone else make sure you do your due diligence on the company first.

Taxing Times

Unfortunately, even though you have already been taxed on your income before it formed part of your pension pot, you will also be liable for UK taxation on income you derive from your pension – hopefully one day the UK will realise that this is a ridiculous thing to do – but until that day you need to be aware that you will be liable for this tax unless you move to a country with which the UK has a double taxation agreement.

Basically you need to be careful when planning your overseas retirement and remember to bear in mind things like the taxation you will incur when examining the cost of living.

Additional useful contacts for anyone planning their retirement abroad who is concerned about their pension (correct at time of writing): -
The Pension Service International Pension Centre (IPC) deal with queries about United Kingdom benefits payable to overseas customers.

You can contact the IPC on +44 191 218 7777 from 8.00 am to 8.00 pm Monday to Friday.
Or you can write to:
International Pension Centre
Tyneview Park
Newcastle Upon Tyne
NE98 1BA
United Kingdom

For information on Medical Benefits contact +44 191 2181999
For information on non-pensions related benefits use the contact numbers below:
Bereavement Benefit/Widows Benefit +44 191 2183826
Industrial Injuries Disablement Benefit +44 191 2187122
Incapacity Benefit +44 191 2187109
Pro Rata Incapacity Benefit +44 191 2187050