We recently compiled a list of the 20 Best Places to Retire in England and in this article, we will talk about the Best Place to Retire in England.
Navigating Retirement
Navigating retirement finances seems to be an uphill battle for many Americans approaching retirement. According to a study by Prudential Financial, Inc. (NYSE: PRU), the median savings of 50-year-olds in America is just $50,000. This sum is significantly short of any estimate of the amount required for Americans to retire comfortably. According to Prudential Financial, Inc. (NYSE: PRU), individuals aged 55 and planning to work for another decade should have eight times their salary in savings to be on track for a comfortable retirement. For the average American this amounts to $447,000, per Prudential Financial, Inc. (NYSE: PRU).
As Americans struggle to come to terms with the realities of an uncomfortable and delayed retirement, there are several factors that could jeopardize their retirement further. Social Security’s Annual Trust Fund Report 2024 shows that trust fund balances are projected to deplete by 2033. Thus, those relying on Social Security checks to make up for their lack of savings may have to brace themselves for the possibility that by 2035, Social Security benefits could be slashed significantly.
One common method of coping with a lack of retirement savings is to relocate to more affordable pastures. While there tend to be affordable places to retire in every state, budget-conscious retirees often choose to relocate to southern states such as Texas, Oklahoma, and Louisiana. Another alternative is for retirees to relocate internationally, where they can find decent living for even as low as $1000 per Month.
Retiring overseas
The Association of Americans Resident Overseas estimates that currently close to 5.4 million Americans live overseas. Whilst many of these are individuals who move abroad for career prospects, there is also a significant number of retirees who have settled abroad. In fact, in 2023 the Social Security Administration (SSA) stated that the number of Americans drawing their benefits from overseas grew from 413,000 to 760,000 in a three-year period.
Affordability is a major factor that drives US citizens to retire abroad. Europe, one of the most popular foreign retirement destinations for US citizens, has a cost of living that is 31% more affordable than the US median cost of living. Whilst European economies have also experienced significant inflation in the wake of the pandemic, housing and living costs in the region continue to be lower than in the US.
Although affordability is an important factor in driving retirees to foreign shores, it isn’t the only factor. Many retirees with the means to comfortably retire in the US also choose to retire abroad. For many, retirement marks the start of a new chapter in which they can pursue personal hobbies and passions that they weren’t able to during their career.
According to Fidelity Investments, many individuals are looking to pursue their dreams and passions in their second act, with 60% of Gen Zs and 58% of Millennials hoping to abandon traditional retirement paths in favor of traveling, relocating, or even opening a new business. Therefore, the idea of being able to settle into new and exotic cultures, save money on essential expenses, and use the excess savings to pursue adventures can be extremely alluring.
Similarly, 63% of Americans aged 50 and older say travel is an important retirement goal. This is based on a survey conducted by the Royal Bank of Canada (NYSE: RY), Canada’s largest bank. The Royal Bank of Canada (NYSE: RY) operates in 29 countries, including Canada and the US, and is one of the best international dividend stocks to buy.
Recently, the bank announced a 3% increase in its quarterly dividend payout to CAD $1.42 per share. The rise in dividend payout was a result of a strong performance in the quarter ending April 30th, 2024, during which it generated a revenue of $14.15 billion. This was a YoY increase of 13.7%, courtesy of higher interest rates and stronger volumes, which also allowed it to generate a net income of $4 billion.
During the quarter, the Royal Bank of Canada (NYSE: RY) completed the acquisition of HSBC Canada, which translates into 780,000 additional clients and approximately $75 billion of both loans and relation-based deposits. The Royal Bank of Canada (NYSE: RY) currently has an annual dividend yield of 3.81%. and trades at $109 per share. Whilst competitor banks such as the Bank of Montreal (NYSE: BMO) and The Bank of Nova Scotia (NYSE: BNS) have a forward P/E ratio of 9.95 and 8.89 respectively, the forward P/E ratio for the Royal Bank of Canada (NYSE: RY) is 11.92.
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Retiring in England
Retirees considering spending their golden years outside the US must consider England as one of the best places to retire. Unfortunately for Americans, the UK has now canceled its retirement visa program, under which individuals with a minimum income of £25,000 a year and close connections to the UK could retire in the country. However, individuals can still use other visa programs to take up temporary stay in the country, which can later be used to qualify for a settlement visa.
Although England is renowned for its affordable healthcare system, non-residents are required to pay for their healthcare expenses. However, emergency medical care and a few other services are free for non-residents as well. An additional benefit of retiring in England is its high quality of life, due to which it is considered one of the safest and happiest places for retirement. In comparison to other popular retirement destinations in Europe, Americans can find it much easier to settle in England due to there being no language barrier.
With this considered, if you’re looking to discover the best places to retire in England from the USA, join us as we look at the Best Place to Retire in England.
The Best Place to Retire in England
Methodology
To develop our list of best places to retire in England, we initially picked out the most recommended best places to retire in England on the internet. We used 10+ sources including our list of 25 Best Places to Retire in the UK, Comfort Life, and Moving Waldo to develop a shortlist. Further research was narrowed down to these places only.
Among these best places to retire in England, a consensus approach was used to determine the rankings, assigning one point for each recommendation from a source. We have also discussed the average property prices and average rent prices for each place. These have been sourced from Home.co.uk and Zoopla.
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Our methodology revealed that Plymouth is the Best Place to Retire in England.
1. Plymouth
Insider Monkey Score: 18.70
Median Home Price: $308,340
Average Rent: $1,192
Plymouth is located in Devon and offers the most impressive balance of affordability and charm. It is located along the southern coast of the country and offers incredible weather, along with plenty of charming cultural attractions and historical sites. It provides access to incredible beaches and Dartmoor National Park.
Check the complete list at 20 Best Places to Retire in England.
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Disclosure: None. This article is originally published on Insider Monkey.
