Spain is the most popular destination for the 10 per cent of Brits seeking fun int he sun in their later years, according to research by Retirement Advantage.
Other popular hotspots include France, Portugal, Italy and the Far East, the poll of 1,200 pre-retirement adults found.
But financial issues can easily catch out retirees.
"If you retire to some countries, you will not be eligible for increases in the state pension, which currently rises by the higher of inflation, earnings or 2.5 per cent, under the 'triple lock' mechanism," Andrew Tully, pensions technical director at Retirement Advantage, warned.
"Countries in the EU, as well as many others, have ‘reciprocal arrangements’ with the UK, meaning your state pension will increase each year. However, other countries including Australia, Canada and New Zealand do not, which means the state pension will not increase once you move overseas."
He gave the example of a single person who retired in 2007 to a country where there is no reciprocal agreement in place, pointing out they would have seen their state pension frozen at £87.30 a week. It is now £122.30, a difference of 40 per cent, or £1,820 less annual income.
‘When we leave the EU, reciprocal arrangements will form part of any deal reached, so it is unclear what the position will be in future," he added, referring to Brexit.
People planning a move overseas must tell HM Revenue and Customs, as it can allow any UK pension to be paid gross - no tax deducted - and taxed in the expat's country of residence . This only applies if the country the expat lives in has a double taxation agreement with the UK.
If retirees decide to keep a house in the UK, they must let their mortgage provider and insurance company know if it will be rented or remain empty.
Geraint Davies, managing director at Montfort International, which specialises in helping Brits retire abroad, said those who move overseas rarely ever realise the importance of getting their tax and finances in order before departure.
"Those moving overseas need to be wary of the UK expat financial advisers they may well meet overseas.
"We are constantly being contacted by migrants in terrible states seeking help as they have fallen victim to predatory British advisers operating overseas who appear convincing in their sales approaches.
"These salesmen rarely have any meaningful qualifications.
