For a UK pensioner the best decision upon retirement is to say goodbye to the Eurozone and move to Jamaica where their buying power is so much greater and the weather so much warmer.
The average pension of a public sector worker is approximately 5,600 Great British Pounds, hereinafter GBP. In March 2003, this would buy a person approximately 7,292 GBP in the Eurozone. Currently, the buying capacity of 5,600 GBP in the Eurozone is 5,692 GBP. That means one can only afford in 2013 what they could afford ten years earlier in 2003. Actually, that is not completely correct. The change in buying power is minus 22 percent!
Can you imagine being a pensioner and realizing that the pension you worked so many years to attain has not kept pace with inflation and in fact has basically you have moved backward? Such information could give an individual a legitimate reason to go to the bar and start drinking because it seems like a nightmare but it is actual fact. If a retired public sector worker has decided to live out their years in a country in the Eurozone and rely in part on their pension than their lifestyle and standard of living has not improved but instead taken a step backward.
In contrast, if this same public sector worker decides that they might want to enjoy their retirement waking up to blue skies and warm weather in a country such as Jamaica than their buying power has increased by approximately 66 percent over the past ten years! For a breadwinner of a family, the conversation about retirement with a spouse and the grown children must be one of the classic comedic discussions that many a movie producer will likely attempt to recreate in the upcoming years. “Kids, if you would like to visit Dad and Mom you will have to board a plane and put on your sandals and sunscreen because your parents are going to be enjoying life in the sun in Jamaica because the Eurozone have become too expensive.”
A public sector retiree will enjoy a much-improved buying power of eighty-eight percent (88%) if they live in Jamaica as compared to living in the Eurozone. If they compare their buying power in Jamaica as compared to living in Australia they enjoy a buying power that is 113% more than what they could afford down under.
For the average public sector retiree, the decision is simple. Start looking for homes in Jamaica, pack the sunscreen and tell the kids that you will visit them occasionally but they can find you on the beach in Jamaica with a drink in one hand while you wear shorts and a t-shirt on a daily basis. You worked hard to earn your pension and now you intend to enjoy it with an everlasting smile and in your sandals.