New Zealand, Turkey and Australia: The countries where your pension pot will go furthest
Thinking of retiring abroad? New pension freedoms mean Britons can (theoretically) transfer larger amounts of cash abroad than ever before – but what does that mean for those in the market for a home somewhere balmier?
New research by foreign currency and international transfer currency Fairfx suggests those looking to move abroad should look to New Zealand, where Britons can get 19 per cent more for their money than they could a year ago.
Next on the list is Turkey – the pound is 17 per cent stronger than it was a year ago – while in Australia, sterling will stretch 13 per cent further than it did a year ago.
But it seems UK residents keen to move abroad tend to look closer to home: the research suggested Britons tend to send cash to Eurozone countries to buy property – with a third of all transfers made to those countries aimed at paying for property.
| Currency | Exchange rate July 2014 | Exchange rate July 2015 | How much more you get for your money |
| New Zealand dollar | 1.9478 | 2.314 | 19% |
| Turkish lire | 3.6172 | 4.2309 | 17% |
| Australian dollar | 1.8109 | 2.0454 | 13% |
| Bulgarian Lev | 2.4406 | 2.7503 | 13% |
| Euro | 1.2482 | 1.4063 | 13% |
| Singapore dollar | 2.128 | 2.1172 | -1% |
| US dollar | 1.7051 | 1.5726 | -8% |
The most popular countries to buy homes in were Spain, France, Ireland, Italy and Portugal.
"For those UK pensioners faced with low interest rates on savings accounts, buying a second home overseas may make financial sense," said Darren Kilner, a currency expert at Fairfx.
"In Europe, you'll get 13 per cent more for your money, so for example as mortgage of €200,000 a year ago would have cost £160,230 when the pound traded at €1.2482. At the exchange rate on 1 July 2015 at €1.4063 this property would cost you £142,217, meaning a saving of £18,013 on your property simply for being savvy when it comes to currency rates."
Maybe avoid Greece for now, though…