Portugal Becoming a Top Choice for British Retirees

A recent report from the Office for National Statistics highlights a notable surge in the British community in Portugal, particularly among senior citizens seeking a new European abode, according to Schengen Visa.

The Department for Work and Pensions discloses a significant migration trend, with over a million (1,152,585) British pensioners now residing overseas while drawing their UK state pension. Surprisingly, this figure surpasses the count of pensioners currently calling London home (922,162).

Post-Brexit dynamics have positioned Portugal as the top choice for British retirees, lured by its pleasant climate and alluring tax incentives. Before Brexit altered the landscape, Brits could easily relocate to Portugal under EU membership. However, the current scenario demands British passport holders to secure a visa for a move to Portugal.

In response, Portugal offers accessible residency options, with the D7 and the Portuguese Golden Visa emerging as favorites among the British expats. The D7 visa, catering to those with passive income sources like pensions or property rentals, requires proof of income exceeding the Portuguese minimum wage. This provision positions Portugal as an appealing choice for British seniors whose pension income surpasses the national minimum in the EU country.

The cost of living crisis in the UK is driving the exodus, as retirees seek more affordable alternatives abroad. Unbiased reveals that three-quarters of individuals aged 50 and above are worried about the cost of living impacting their retirement plans. A significant 53 per cent fear inadequate income for their post-work years.

Despite a rising cost of living, the workforce participation rate among those aged 50-64 in the UK has seen an increase of 68,000 from its mid-2022 low. The Organisation for Economic Co-operation and Development (OECD) notes a more pronounced drop in the employment rate for those aged 55-64 in the UK compared to other advanced economies.

With retirement becoming a dominant consideration, the Bank of England’s recent forecast predicts Britain’s overall labor force participation rate to persist below pre-pandemic levels in the coming years.