trirod

I've lived in the US (Ohio) since 1995 and am planning to retire fairly soon, before the age of 65. I have been tracking my expenses very carefully for the last few years and think I have a pretty good handle on what I would spend in retirement if I am still living in the US. However we have some family circumstances that may require us (my wife and I) to move back to the UK for a few years - and I don't have a real feel for the cost of living there any more.


There will be a big saving on healthcare I assume (if I was retired here then, pre-Medicare age, I would be on the exchanges or whatever supersedes this - lot of unknowns here). The housing in Ohio is pretty cheap so almost anywhere I go in the UK will be more expensive for housing. Obviously gas is a lot more expensive in the UK, but with more fuel efficient cars there and shorter distances, I am thinking my total gas expenditures won't change.


Thoughts on what else might be a lot more expensive or a lot cheaper in the UK? My real estate taxes should go down, since I am currently paying almost $5,000 annually on a $200,000 home. It seems that internet and cell phone service are cheaper in the UK, but electronics (computers, iphones) are more expensive.


Thanks

geoff52

You talk about moving for few years. Does that mean you will be selling and buying houses?

Rete

Does that mean you are both US Citizens? Yes, finances will and do play a part but always where will you be happiest.

mrken30

From my recent visit in May, much of the food in the grocery stores is cheaper or similar price in the UK.
Sales tax is obviously higher, but clothing seems to be similar price or less.
Used cars are cheaper.
Car tax + MOT costs more
Housing , just depends on where in the US you are and where in the UK you wish to live.
You could still probably buy a 3 bed house in Wales or the North for under £200k
UK Pension is a lot less, but you will probably still be entitled to credits and have access to a US pension.
Most electronics are similar price these days thanks to cheap Asian imports.
Parking charges are generally higher in the UK
Short haul Flights tend to be cheaper

On the whole , I think the UK has a lower cost of living, but it is slowly increasing , mainly due to Brexit.

Steve_

It's basically a choice between housing and healthcare. Housing more expensive in the UK, healthcare more expensive in the US.

mrken30

Depends where you live. You can buy a 3 bed house for £50k in the UK

3 bedroom terraced house for sale in Napier Street, Nelson, BB9

Steve_

But for the equivalent amount of money you can buy a bigger place in the US. Unless you're thinking of retiring in NYC you aren't going to win this argument.

If you've got enough Medicare credits to qualify for part A I'd say stick with the US and try not to get too ill before you hit 65. If you are ill, then I'd say move to Canada.

mrken30

You don't get much in the US for $60k. Not anywhere near civilization.

yellowroom

You may find it helpful to read the posts of robin1234, who is retired and splits his time between the US and the UK. He will be able to speak from experience with any queries.

scrubbedexpat142

Judging by your earlier post it looks like Britain is much the same!

robin1234

Hey, thanks yellowroom.

This is always a difficult one. Depends so much on circumstances, lifestyle and preferences etc.

I'd definitely say that food is cheaper and better quality in the UK, but again, ymmv...

Housing, well, there are astronomically expensive places in both countries and cheap regions too. Yup, high UK petrol prices don't bother me, it is likely that mileage driven in a year will be much less, but that depends on personal choice, whether you like to use public transport, etc.

trirod

Thanks for the responses so far. We are both dual citizens and have built up decent credits for both social security and the UK state pension, so that's not too much of a concern. As far as housing, our thought now (not yet fully explored) would be to sell our house here (older, high maintenance) and buy a low maintenance vacation home somewhere in the US that we could rent out while we are not using it. Then probably rent in the UK (seems like renting offers better value than buying right now, especially if we don't plan to be there for a long time). We would likely live in the UK for 10 months and visit the US for 2 months, say.


So we will be kind of doubling up on housing expense, but the income from renting out a vacation home should help offset that somewhat. Also, the reduced health costs in the UK should help too.

theOAP

trirod, as you may know, you're asking an impossible question to answer. You may as well ask what's the difference between the weather in the US and the UK. There are national averages, but that doesn't answer the question for the individual. The answers cannot be of any usefulness without a full breakdown of the individuals personal circumstances and expectations (most of which should be no one else's business, especially ours on a public forum).

Some simple questions:

You mention you have done the financial calculations for retiring. You have mentioned you are dual citizens.

What are the sources of income in retirement? You mention you've lived in the US for 22 years. One must assume US SS and the UK State pension are only a part of the total pension income. Other pensions and Investments? If so, where are they sourced? What are the country source ratios and will that have an impact on future financial availability? Have you calculated the results of variations in currency fluctuations on your plans? ($1=£1.30 to $1=£1.70)

Do you fully understand the impact of dual citizenship, for example on your abilities to invest during retirement? Do you fully understand the consequences of living in one country and owning property in the other with dual citizenship?

It could all go wonderfully. Future currency fluctuations, the economies of the countries, and dependability of income may be prove to be in your favour. You may have the funds to support your intended lifestyle. Or, it could all go to Hell in a hand cart. There's no way anyone can tell for certain, but you must consider everything if you wish to proceed with some degree of confidence.

At the end of the day, the comparative costs of living mean nothing. What does need to be understood is the availability of income to support the cost of living, whether high or low, in the country you will be living in.

robin1234

Going forward, on the 10 month / 2 month scenario, you'll have to work out what to do about health coverage in the US. I (now over Medicare age, I'm 66) decided to pay for Medicare Part B, about $110 a month, just to cover my future needs & choices.

We bought a small, inexpensive, lock up and leave flat in the UK. I say inexpensive, but it cost three times the price of our 3,000 sq ft house on five acres in NYS!!

mrken30

This is good advice. I guess the other question, is what activities do you want to do during retirement? Which country do you prefer? If you enjoy shooting, don't move to the UK. If you enjoy European travel, the UK is a good base.

I still think I would like to retire to the UK and am trying to keep a balanced investment portfolio as much as possible. I just think cake is better in the UK.