Foreign shores are tempting more and more of those who retire to sellup and move - but what does it mean to them in terms of their pensionsrights and welfare contributions?

FOR many people the reward for a lifetime of work is retirement - thatchance to be free to do what you want, when you want, where you want.

And over the next 10 years a staggering 2.3 million people are expectedto pack up and head off overseas for their sunset years.

Finding the sun and eating olives has become the aim of many and it isnot difficult to see why. They can enjoy an afternoon siesta without any pangs of guilt.

The age of retirement has also become more fluid with many peoplecashing in and bailing out to chase their dreams in their late 40s and50s.

But moving abroad to enjoy those golden years requires plenty ofthought and lots of planning.

First, pensions need to be thought about. Always find out about yourdestination. The European Economic Area (EEA) is made up of thosecountries that are full members of the European Union (EU): Austria,Belgium, Denmark, Finland, France, Germany, Greece, Italy, Luxembourg,the Netherlands, Portugal, Republic of Ireland, Spain, Sweden and theUnited Kingdom (UK), plus Iceland, Liechtenstein and Norway.

As an EEA national, you have the right to live in any EEA country. Fornon-EEA countries speak to the British Consul abroad and the foreignconsulate in the UK. Work out what your retirement income will be. You must be clear about your financial situation on your retirement.

You must allow for exchange-rate fluctuations and inflation. Beinformed and ask for a Retirement Pension Forecast. It tells you intoday's money values the amount of state pension you have earnedalready and the amount you can expect to receive at state pension age.

Obtain form BR19 from your local social security office or contact theRetirement Pension Forecasting and Advice Unit (RPFA). If you wish toobtain a pension forecast from abroad you should contact the InlandRevenue and ask for form CA3638. You will still receive your statepension on retirement (provided you have reached state pension age) ifyou live overseas, but it may not be increased annually if you are going to live outside the EEA or if you reside within the EEA but are not covered by EC social security regulations.

This means 500,000 UK pensioners in these countries, which includeAustralia, Canada and South Africa, do not get the annual increases. But those who retire to the European Union or America will get the fullannual rise.

Remember you will need to ensure you make similar arrangements for anypersonal or occupational pensions before you leave.

Find out about your tax liability abroad. If you retire abroad you willstill have to pay UK tax on income you receive from the UK, over andabove your age-related personal allowance.

If you go to live in a country that has a double taxation agreementwith the UK, you may be able to pay less tax. See leaflet Income Tax and Pensioners (IR121) for further information.

Offshore banking could provide a cost-effective answer. Once you are nolonger resident in the UK, different taxation rules apply depending onyour country of residence. You may want to seek independent tax adviceand consider the benefits of offshore banking before you retire abroad.

An offshore bank account can play an important role in helping tominimise your tax liabilities. Additional benefits may include assetprotection, estate planning, confidentiality, security, and the abilityto deal with English-speaking professionals who understand culturalsensitivities and the unique needs of expatriates.

Also check out thoroughly your welfare rights abroad. If you are movingto an EEA country, or to a country that has a social security agreementwith the UK, you may be able to claim a benefit that you would notnormally get abroad.

You may be able to claim a benefit of that country. The benefits youreceive in the UK may also be affected by your move abroad. Each benefit has different rules and some UK benefits cannot be exported - like housing benefit.

For your welfare rights outside of the EEA, the UK has reciprocal social security agreements with: Barbados (SA43), Bermuda (SA23), Canada(SA20), Cyprus (SA12), Guernsey (SA4), Israel (SA14), Jamaica (SA27), Jersey (SA4), Malta (SA11), Mauritius (SA38), New Zealand (SA8), Philippines (SA42), Switzerland (SA6), Turkey (SA22), USA (SA33) and Yugoslavia (SA17) (applies to the Republics of the former Yugoslavia).

The leaflets explaining what these agreements mean for you can beobtained from the Department for Work and Pensions (DWP). When you have made up your mind you must let people know your change ofaddress. Inform your social security office, the Inland Revenue National Insurance Contributions Office - International Services, and the Department for Work and Pensions

And if you come back, let them know that too. Then if anything needs tobe done about your contributions or benefit rights, it can be donestraight away.

It is important to know about health costs abroad. If you go to acountry in the EEA and you are entitled to a UK state retirement pension, incapacity benefit at the long-term rate, widows' benefits orbereavement benefit, you need form E121. When you ask the Department for Work and Pensions about getting your pension paid to you in another EEA country, they will automatically check to see if you can get the E121 as well.

If so, you will receive the same free or reduced-cost medical treatmentas a qualified pensioner of the country you are in, under its statehealthcare scheme. You are also strongly advised to get healthinsurance to cover private medical and dental treatment, and medicalrepatriation to the UK.

Find out about accommodation costs. You must find somewhere to live.However, it may be better to rent to begin with, and to keep your homein the UK. If you intend to buy property abroad make sure you seekprofessional legal advice. Your local British Consul can provide a listof English-speaking lawyers who can assist you.

Always ask for advice. Get in touch with expatriate organisations inthe country you plan to live in. The Internet is a good source ofinformation.

When you arrive register with the local authorities. This will give youaccess to the local welfare services after a short period of time. Ifyou are moving to another EEA country you must apply for a residencepermit within three months of arrival.

It is wise to register with the British Consulate. This will help theConsul keep in touch with you if you get into difficulties, or in thecase of an emergency. In countries with large expatriate communities the Consulate may also have a fact sheet to help retired UK expatriatessettle in.

Ensure your passport is valid. Fill in the next-of-kin details in theback page. If your passport is about to expire apply to the BritishConsulate to have it renewed. For EEA countries your residence permitalso serves as an identity document, so you do not need to carry yourpassport around with you all the time.

Open a foreign bank account. Within the EEA you can apply for anon-resident bank account on arrival. Once your residence permit hasbeen granted - usually after three to six months - you can open a normal bank account. In many countries, your retirement pension can be paid directly into your bank account.

Try to fit in with the local community. Hospital and local welfareservices staff will not usually speak English. You will find day-to-daylife much easier if you can make yourself understood.

ÝMake a will. If you die intestate abroad this can cause greatdifficulties for your heirs. Seek professional legal advice. You mayrequire separate wills for assets and property held in the UK and othercountries. Your local British Consul can provide a list ofEnglish-speaking lawyers who can assist you.

Check local traffic regulations. Driving is permitted on a valid UKlicence in EEA countries. You will need to be fully insured. You may berequired to exchange your UK licence for an EEA national licence onceyou have gained resident status. Licences are valid for five years from45 to 70 years old and two years thereafter. For other countries youwill also need to take an International Driving Permit (IDP), which must be obtained before you leave the UK. Stay in touch. Keep your family and friends in the UK fully informed ofyour address abroad at all times.

If there is a large British community, the local British Consulatewill normally provide a leaflet on welfare services, the availability of medical treatment and local doctors.

If you have further queries or concerns contact The Pensions AdvisoryService (OPAS) on 08456 012923.

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FRANCE

Make sure you sort out your pension arrangements. If you are retiringpermanently in France you should inform your DSS office a few weeksbefore your intended date of departure. You will need to fill in theappropriate forms according to your personal situation and should beable to claim any pension you are entitled to as well as be able toregister with the French health system.

People generally think of France as a place with high taxes. Comparedto the UK, which has only three levels of tax rates, France has seven.The top rate of tax in France is 49.8 per cent, while in the UK it is 40 per cent, however unless the income of a retired couple exceeds 70,000 euro they will be better off taking up residence in France.

You must however be aware that all French residents are liable for taxon their worldwide income, so a pension being drawn in another countrymust be declared in France. France has a double-taxation agreement withmany countries, including EU member states and the USA, so the tax paidin one country acts as a tax credit in the other.

ITALY
Even for EU citizens, getting an Italian residency visa can be complex.When you arrive you must apply for a temporary resident's permit froma police station, which allows you to stay for three months. To go on to get a resident's remit you must return to the police station and take with you a valid passport, or some proof of employment or adequatefinancial resources: this then needs to be renewed every five years.

PORTUGAL
Once you arrive in Portugal you'll need to apply for a tax number anda fiscal number (a "numero de contribuinte") in order to pay yourtaxes. If you are a pensioner then lower rates are available - you canalso collect your State Pension whilst living in Portugal.

SPAIN
If you were receiving a pension in the UK before moving to Spain thenyou can continue to receive it after you have moved, and have it paiddirectly into your Spanish bank account.

TURKEY AND CYPRUS
Pensions will be taxed only by the paying government. In Cyprus, bothpublic and private-sector pensions can be received in Cyprus free of UK withholding tax.