Many of us dream of spending our retirement overseas. Often the allure of a sunnier climate and the opportunity to pursue dreams that we never had the time or chance to fulfill in the UK is too attractive to ignore. However, there are various considerations that are particularly important to keep in mind when retiring abroad, in order to ensure a stress-free transition.

Whether you already know your dream destination, or are still unsure, it is worth compiling a checklist of factors that are important to you. This could be anything from being close to family, having year round sunshine or being in a central location. Once you know which factors are most important to you, it can act as a guide to help you through the process.

One of the key factors in any retirement decision is finance. If you are considering moving abroad it is even more imperative to understand the potential financial implications and issues that may arise. It is not difficult to see that costs of day to day living vary significantly between countries, and possibly also within the country dependent on whether you choose to reside in a rural or urban location. However, what many people do not take into consideration is that the types of cost can vary, for example payments of tax, insurance and other living costs can differ dramatically dependent on country. Some countries even experience volatile living costs due to rapidly changing inflation levels, which can make it harder to predict your expected living costs.

Another commonly underestimated consideration is exchange rate fluctuations. If the primary source of your income is in sterling, its strength, or lack of, will directly impact your standard of living. All of these factors can take their toll on your finances if they have not been factored into account beforehand. Therefore it is vital to conduct a thorough financial analysis, to check what living costs you will be liable for in your chosen destination, and what will be required to ensure that you can sustain your desired lifestyle before you make any firm plans.

Visas are usually an obligatory part of the relocation process. Fortunately for UK citizens, a visa is not required if you choose to retire in any of the 27 countries within the European Union - from Belgium to Bulgaria. However, outside the EU it is a different question. There will usually be a range of visa types to choose from, many of which stipulate various conditions such as being in good health, the absence of a criminal record or even a minimum income. Time spent researching the most suitable type of visa for you can avoid headaches further down the line.

It is also necessary to take into consideration that certain UK benefits are only payable within the UK, others apply only in the EU or in countries which have special agreements with the UK. This means that moving outside these countries can directly impact your retirement income. Whilst pensions may still be paid, they may be subject to tax both in the UK and overseas and therefore other sources of income may become more important.

Healthcare is also a prime concern for retirees no matter where they live, and therefore if you are considering moving abroad it is especially important to know what healthcare costs you are covered for, and whether supplementary care is necessary. This means it is also important to consider the standard of healthcare provided, as this can of course vary considerably between countries. It is often advisable to take out health insurance to cover medical and dental treatment, or even medical repatriation back to the UK.

Every country presents its own way of life and challenges; with anything from water shortages to tornadoes it is important to consider how local conditions may affect you and to ask yourself how you would react to such situations. It's also worth remembering that a summer resort may not be so appealing out of season when there are fewer people around, so make sure you know what to expect during the long winter months. If possible try and spend some time there at different times of the year before you take the plunge.

It can also be a lot harder to integrate into society if you cannot speak the local language, and it may be worthwhile trying to familiarise yourself with the basics before moving. If possible, investigate whether there is already a flourishing expat community in your destination, as this can be a useful source for social connections, future friendships and invaluable information from those who have already been through the moving process and can advise you of what to expect.

There are many considerations that need to be thought through when planning your retirement abroad. However, whilst the overseas move can be daunting at first, it can also bring many exciting, new and rewarding experiences.