Each year more and more British people are moving abroad. Currently there are approximately 5.5 million people living abroad according to a 2006 survey. Besides this there are many many more Brits planning to make the move for good. The most common destinations being: Spain, Australia, Canada, USA, Ireland, South Africa, New Zealand, France, Cyprus and Germany.
Of course everyone has their own reasons for moving abroad amongst the most common are:
Rising costs - With London now being the second most expensive city in the world to live in, not too far behind Tokyo, many people yearn to see their money provide them with a better standard of living elsewhere. Out of this group are of course retirees who wish to make their pension stretch that bit further. However one further growing group of people are in the 18-25 year old age group. This group has been forced to suffer silently with little help from the government whom seem satisfied to see them struggle in their own country. Student loans, no grants, high house prices, high tax levels all contribute to pushing them away. This combined with the fact that the new generation are much better traveled and understand the potential for living abroad better than previous generations mean the group is likely to continue to grow.
Increasing crime rate - This is probably the most worrying of factors. People are becoming afraid of living in their own country. Walking around alone at night with groups of drunken youths about is no the most enjoyable experience (27% of British youths are regularly drunk), unrelenting drug issues and binge drinking all impact on how much people are enjoying their lives.
Further common reasons are: better weather, excitement, adventure, disapproval of government policies (taxation, Immigration etcetera...).
So with people looking to move abroad one of the most important things to think about is how to manage your finances or even transfer money overseas. Here are a few guidelines to consider regarding this situation:
There are three main options to consider:
1) Keep your UK bank account. If you choose to keep your account look for a bank that does not charge commission on ATM transactions overseas also make sure they are quite clear as regards to what commission they are taking from you and most importantly make sure you are getting a fair exchange rate! Check it against the daily papers.
2) Switch your bank account to one that is specifically geared towards ex-pats. These type of bank accounts are offered by the major high street banks and are often based in locations such as Jersey that benefit from different taxation laws. They usually provide multiple currency services whereby they can provide both euros and sterling for you to use. This would easily allow you to live in Europe and have a euro checkbook and cash but still pay bills at home in sterling. As ever though there are certain terms and conditions for benefiting from one of these types of accounts such as minimum balances and annual fees.
3) Try working through the host countries administrative process and open an account with them. This may or may not be possible depending on their requirements of your new country. Some countries require work permits and so on and the process can be made doubly difficult if you're having difficulty with the local language. Of course if you plan on working abroad then the chances are your employer will be able to have one opened for you to allow payments. If you do gain a local bank account you are then faced with having to transfer money from the UK to this bank account. Depending on what bank it is you may be able to arrange a wire transfer from your UK account. Another simple way would be to use an online transfer service. These money transfer companies can transfer money directly from your UK account to you wherever you are in the world. They are very fast and efficient but again different companies require different fees.
The best advice would be to take a step back and look at your overall situation. Consider what is going to be the cheapest and most sustainable way for you to manage your finances abroad. Remember a 1% saving on several thousand pounds saves you a considerable amount of money. With the above tips in mind take your time , shop around and you will soon be able to start living in your new country worry free.
