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

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 to 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.

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 ex-pats 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.

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, as “miles of countryside walks for ramblers” and “splendid seascapes” as well.

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 ex-pat-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 $2,612 for a one-bedroom apartment in London’s city center and $1,845 outside the city center as of June 2023. The average price to buy an apartment in the center of London is around $1,560 per square foot—about $100 more than a comparable apartment in New York City.

Once you leave London, things get more reasonable. Edinburgh’s rental housing costs are 95.9% lower than in London, local transportation is 47.4% less, and groceries are about 17.9% cheaper. Head for Plymouth and rent is 63.6% less than in London, restaurants are about 20.3% cheaper, and overall, you would need around $7,255.70 (£5,700) in London to maintain the same standard of living that you can have with $4,362.40 (£3,427.10) in Plymouth.

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 ex-pat websites such as Expatica.com and UK-Yankee.com.

The Bottom Line

The United Kingdom is an attractive place for Americans to retire, according to Culpepper. American ex-pats 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.”

Beyond that, connections to Europe are good and cheap. One note of caution: Americans who come from the warmer/blue sky states may struggle with the weather.