A brand new demographic group has been identified in Britain and labelled FREDs. Members of this demographic are over fifties who are ‘facing retirement earnings doubts,’ and according to the likes of Liverpool Victoria, the friendly society, and the Office for National Statistics, this group of around two thirds of all over fifties have very real FRED fears that they will face an impoverished retirement.
One way around the thought of facing penury or poverty in retirement is to move to live in a country with a lower cost of living. And before you panic and think we mean moving to a third world nation with an unfortunately low standard of living, we don’t. Think about living in Turkey to escape FRED fears because in Turkey the cost of living is affordable, the cost of property is affordable and Britons are find that their pensions go far further as this report from Spot Blue shows.
With the cost of living in the UK rising so rapidly and with increasing numbers of FREDs still supporting their children because the rate at which the housing market has risen in pricing terms in Britain has priced younger generations out of the market. FREDs have every reason to be concerned about their financial wellbeing in retirement. According to a UK based research company, the price of a typical basket of 100 grocery items now costs almost 6% more than it did at the start of the year and this week fuel prices in Britain reached their highest ever levels. Leading retailers are reporting that Britain is in a ‘consumer recession’ as fewer people head to the high street and spend, and inflation in April in the UK rose to its highest levels since 2002.
All of these factors are contributing to the fears faced by the FREDs, and with ongoing indications of a ‘credit crunch’, the likelihood of a recession in the UK and the fallout from a falling property market, those FREDs who can do so are actively thinking about an overseas retirement where their pension and savings income will go that much further.
According to Julian Walker MD for Turkish property agents Spot Blue: “countries that are less likely to be considered now because of the gulf between the buying power of the weak pound against the mighty euro are Spain, France and Cyprus – traditionally hugely popular overseas retirement hotspots with British pensioners. Instead FREDs are looking at where the pound buys them more and where their relatively limited funds will afford them an attractive and even affluent lifestyle in retirement and prevent them having to continue working past retirement age.
“The one country that is proving popular is Turkey; since the nation began EU accession talks at the same time as a national drive was effected to promote the appeal of the country, the numbers of Britons choosing to relocate to the country has soared, and depending on which statistics you prefer to believe, between 12,000 and 30,000 Brits have now made Turkey their permanent home.”
The appeal of the country – aside from its stunning climate, beautiful natural landscape, rich and diverse history and culture, fantastically friendly people, excellent cuisine and increasingly affordable accessibility – has a great deal to do with the correlation between the cost of living, which is very low, and the standard of living which is very high.
In Turkey a loaf of bread costs you just 20p and the average wage for a professional teacher is just £300 a month, dining out at a restaurant favoured by locals will not cost more than £10 a head. Local seasonal produce at market you will be able to live on £50 a week as a couple easily, and because the weather in southern Turkey is so temperate, fuel bills are very low indeed. Even the price of healthcare in Turkey is affordable, and according to a British retiree who has recently relocated to Turkey, not only is the cleanliness of hospitals in Turkey phenomenal – MRSA does not exist in the nation she explains – but the whole experience of going to hospital in Turkey was “efficient and personable.” This comes from Rosemary Nigbur who doesn’t miss the NHS, doesn’t have health insurance in Turkey, (a personal choice not a recommendation) and who goes to the pharmacy for the majority of health concerns. Rosemary says “the cost of living in Turkey is a mere fraction” of what she was paying when she lived in Britain.
Like many FREDs who have recently moved to Turkey Rosemary finds the cost of living very attractive and has seen the value of her stunning Turkish villa rise 30% in a year. Despite these increases properties are still very affordable making Turkey quite possibly the perfect solution to the financial woes of FREDs who do not want to end up in poverty in retirement. For more information about affordable and attractive property in Turkey please contact Spot Blue on +44 (0)20 8339 6036