UK pensioners flock to France in bid to avoid Government’s economic “granny bashing”
In last month’s annual Budget, George Osborne revealed a £3.3 billion hit on middle-class pensioners which will see many eventually losing the higher personal allowance.
Announced on the April 6th 2012, those aged between 65 and 74 will see the first £10,500 of their income remain tax free while £10,660 will be free for those aged 75 and over. However, from the 6th April 2013, personal allowance will be frozen for current pensioners and not available for anyone retiring after that date.
More controversial news comes in the form of a proposed ‘Granny Tax Mark II’ which could see around 100,000 people lose up to £897 a year – a serious blow to older Brits. Targeting the savings credit benefit, it seems that the government will be looking to slash payments and scrap them altogether by 2016 seeing single pensioner hand-outs cut from £20.52 a week to £18.54 with new pensioners ‘clobbered’ even harder when their benefit ceases, according to research by the House of Commons library.
With Inland Revenue figures highlighting that over 4 million people will be worse off by £83 a year on average in 2013-14 and 360,000 individuals aged 65 set to lose £285 a year on average, this new ‘granny tax’ is sure to encourage even more pensioners to move in their Third Age according to experts.
Danny Silver, expert in French real estate and MD of The Villages Group, comments,
“This so-called ‘granny bashing’ has generated a lot of controversy over the last month and it is likely that the bad feeling amongst UK pensioners could well spark British retiree’s to flock overseas. Indeed, according to deVere Group, a leading international advice firm, the scrapping of the age-related personal allowance will mean that there will be fewer incentives for people to hold pensions in the UK.”
Silver continues,
“This of course makes sense. With benefits axed and British pensioners seeking to protect their retirement funds from government invasions, more Brits will be looking to retire to countries in which they will be taxed less with the forever popular destination of France offering a great escape.
“In France, you have your pension paid under EU law and as well as this you will benefit from a world class medical service. In addition, the cost of food and commodities is approximately 20% lower than the UK while restaurants and eating out is 30% lower and, in my opinion, 500% better. As well as this, France is second only to Japan for life expectancy so moving to France in your later years to avoid the doom and gloom of the UK makes absolute sense.”
For those in their third age contemplating a move overseas, the Languedoc-Roussillon region in France will make for a wonderful place to relocate. Chosen for its three C’s – climate, coast and countryside as well as being one of the best places in the world to go canal boating, Languedoc is one of the most visited parts of south west France and as a result of Languedoc’s popularity, The Villages Group has decided to develop an active living resort ‘village’ for those over 50 to enjoy at the UNESCO World Heritage Site of Canal du Midi, one of Europe’s longest and widest canal systems.
The Villages Group will provide a village community of around 116 villas on the banks of the Canal du Midi. This village site will afford full on-site amenities including tennis courts, indoor pool, gymnasium and quality entertainment programmes, perfect for living an active and fulfilling life within a community of like-minded individuals.
For more information on a fresh alternative and unique lifestyle choice for those in their third age please contact The Villages Group on + 33 1 4007 8625, email villages@pdfparis.com or visit www.thevillagesgroup.com.