How to Retire in the U.K. as an American

Fact checked by Kirsten Rohrs SchmittReviewed by Anthony BattleFact checked by Kirsten Rohrs SchmittReviewed by Anthony Battle

If you want to retire in the United Kingdom as an American, you may think that the transition will be easy—everything’s in English, right? The U.K. does indeed offer some advantages for retirees, but many aspects of life there can take some adjustment, from the metric system to the autos—they drive on the left side of the road and the steering wheel’s on the right side of the car—to the uniquely moist, chill-to-the-bones climate. Here’s what you should know before you cross the pond (or attempt to) permanently.

Key Takeaways

• Americans need to qualify for a visa before making a permanent move to retire in the U.K.
• Although the U.K. is expensive, prices are more reasonable if you choose to retire outside of London.
• American expats can’t join the U. K.’s National Health Service.

Necessary Paperwork

Americans can visit the U.K. as tourists and stay for up to six months without the need for a visa. But you’ll need to qualify for one if you want to stay in the country beyond the six-month limit. There are several circumstances that may help you secure the necessary paperwork to become a resident. You may qualify for British residency if:

• You have family ties to the United Kingdom
• You have established business connections in the U.K.
• You have the right of abode in the country

For instance, you may be granted residency without a visa if you can prove that at least one of your parents was born in and was a citizen of the U.K. when you were either born or adopted.

There’s a common myth that owning property and/or making significant investments automatically grants you the right to residency in certain countries. But that’s not always the case, including in the U.K. Although expats can own property, it doesn’t guarantee a long-term visa or permanent British residency. The U.K. government also withdrew the process for new Tier 1 visa applications for investors, although those who already have this visa can apply for extensions or the right to remain.

Important

You may apply for residency in the U.K. if you are a citizen of a Commonwealth country, such as Australia, Canada, Hong Kong, India, Singapore, Uganda, and Zimbabwe (among others) if you arrived in the U.K. before 1989.

Location Choices

The location you choose depends entirely on the kind of life you want to lead, which gives you several options to consider:

• Urban or rural
• A busy city like London, Birmingham, or Edinburgh
• A smaller city like Exeter, Cheltenham, York, or Bath
• A small town like St. Ives, Wotton-under-Edge, Ambleside, Tenby, Beaumaris, Much Wenlock, or Chipping Norton

International Living’s report on retiring in England cites the east coast county of Suffolk as an attractive choice. Within commuting distance of London, Suffolk is “a treasure trove of squat-towered churches and high-hedged lanes…thatched roof cottages painted in summertime colors…medieval towns of crooked streets and half-timbered Tudor houses.” Devon, another county amply equipped with hedgerows and thatched cottages, has “miles of countryside walks for ramblers” and “splendid seascapes” as well.

Warning

People who were already in the U.K. as a “retired person of independent means” were able to apply to extend their stay up to a maximum period of five years or for indefinite leave to remain, according to the UK Home Office. This categorization was defined as those having a minimum yearly disposable income of £25,000 and meeting several other requirements. As of November 2022, the government stopped accepting applications under this provision.

Cost of Living

Living in the United Kingdom is expensive. “In my experience, it’s more than Spain, about the same as France, and far more than Latin America,” according to Lucy Culpepper, European correspondent for expat-oriented site Live and Invest Overseas.

Of course, actual costs vary widely depending on where you choose to live. Not surprisingly, London is the U.K.’s most expensive destination. In Expatistan’s ranking of 282 cities in the world, it’s the 4th most expensive. London ranks highest in the U.K. and third in Europe. Its public transportation is the most expensive in the world and housing costs are the highest in Western Europe. 

Numbeo, which also compiles cost-of-living data from cities around the world, reports an average rent of $2,877 for a one-bedroom apartment in London’s city center and $2,120 outside the city center as of August 2024. The average price to buy an apartment in the center of London is around $1,615 per square foot—about $30 less than a comparable apartment in New York City.

Once you leave London, things get more reasonable. Edinburgh’s rental housing costs are 44% lower than in London, a one-way ticket on local transportation is 29% less, and a meal at an inexpensive restaurant is 22% cheaper. Across the entire U.K., on average, a meal at an inexpensive restaurant costs 15.00 £ ($20) and rent for a one-bedroom apartment in the city center costs 1,074 £ ($1,410).

Healthcare

As an American retiree living in the U.K., you won’t be able to take advantage of the comprehensive National Health Service, except for emergencies. This means that you’ll be out-of-pocket for non-emergency care. As such, you will be required to purchase private health insurance—the same way you do in the U.S.

Information on insurance and many other matters including paying taxes, buying property, and arranging your move can be found on a number of expat websites such as Expatica.com and UK-Yankee.com.

Is the U.K. a Good Place to Retire?

That depends on which part of the country you choose to call home during retirement. Rural areas of the U.K. offer quiet, peaceful locales while major cities like London offer more bustling environments. If you choose to live in a metropolitan area like central London, be prepared to pay top dollar. The cost of living is considerably lower in rural communities and other cultural centers like Edinburgh. But make sure you qualify for residency before you pack your bags.

I’m an American and Want to Retire in the United Kingdom. What Do I Need?

You can move to the United Kingdom if you can prove that you have the right of abode. You have the right of abode because of your parents, you, or your spouse. You also have the right of abode if you have a British passport or are a citizen of a Commonwealth country who meets certain eligibility criteria.

Can Americans Access the National Healthcare System in the United Kingdom?

Yes and no. Visitors to the United Kingdom can access healthcare services through the NHS. But you will be charged for certain non-emergency services at 150% of the standard rate charged by the NHS. These include visits to a family physician and certain diagnostic testing. Exemptions apply, though, if you are admitted to the hospital for an emergency or are being treated for an infectious disease. The NHS also offers free COVID-19 testing and treatment for everyone—regardless of residency.

The Bottom Line

The United Kingdom is an attractive place for Americans to retire, according to Culpepper. American expats are welcome in the U.K. “In the provincial towns, Americans are still viewed as unusual, and as ‘cool’ among the younger generation,” she says, though she advises staying away from political discussions.

The U.K. “is a safe country. It is a fantastic place for anyone who loves history, the countryside, eating out…Anyone who loves the outdoors and hiking will revel in the freedom to walk almost anywhere unrestricted…And it’s small enough to be able to travel quickly from one region to another and experience a complete change in culture,” she says.

One note of caution: Americans who come from the warmer or blue sky states may struggle with the weather.

Read the original article on Investopedia.