UK pensioners flock to France

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, report The Villages Group. 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.

"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."