It is the ultimate dream for many people - to work hard, build up a nest egg and retire abroad to a climate with year-round sunshine. Now there is an added financial motive to move overseas.
The new pension freedoms will allow you to move abroad, take your hard-earned savings with you - and potentially escape some of the taxes that would otherwise
apply here in Britain. If you move to sunny Portugal for example, it could be possible to take your UK pension and pay absolutely no tax on it for the first 10 years.
This applies even if you withdraw large sums, a move which in the UK could attract crippling tax charges, as such withdrawals are treated and taxed as ordinary income.
Does this sound too good to be true?
To benefit from these rules, retired people would have to plan the move carefully and make sure they meet strict residence criteria both in Britain and their new destination country. And advice from a professional who has experience with the taxation laws of the country to which you intend to move is a must.
But with careful planning and advice, the end result could be a transformed retirement - and a large tax saving.