New research by the Alliance and Leicester has found that nearly a third of expatriates do not increase their savings rate when they move abroad, even though their living costs are typically reduced.
Men were more likely not to save, saying that they have not managed to increase their savings compared to a quarter of women. One in six men do not save any money compared to one in ten women. Nearly half of expatriates in their late forties and early fifties claim that since living abroad they have not been able to increase the amount they save, and a further quarter do not save at all.
Location is also a factor in expatriates saving habits. Those based in the Costa del Sol found it more difficult to keep money in their bank account, while 80% of those based in Germany held onto their cash, and increased the amount that was put aside.
Our view
People have generally moved to the Sun to live. In addition, the age profile is different to that of expats moving to Germany.
Why shouldn't you spend your money when you retire?