By Claire West

As our thoughts turn to the summer holidays, MGM Advantage, the retirement income specialist, has revealed the nation's favourite retirement destinations outside the UK. They are:

1st: Spain 2nd: France 3rd: Australia 4th: Ireland 5th=: Cyprus / USA

Andrew Tully, MGM Advantage commented: "Retiring abroad is an aspiration for many people. Thoughts of better weather, cheaper living costs and potentially cheaper property than the UK can prove a strong draw. But, without the right planning and advice, you can quickly get caught out by local tax laws, exchange rates and other financial arrangements, turning a retirement dream into a potential nightmare.

"You could find your UK state pension frozen at the point of retirement if the country you choose to retire to does not have a reciprocal agreement in place with the UK. For example, if you retired to Canada ten years ago, your UK state pension would now be worth 42% less than if you had retired across the border in the US. Many retirees have found this has hit them hard.

"To help navigate the complexities of retiring abroad, it is vital people seek professional financial advice. There are a number of firms who specialise in providing advice to budding expats, which could make the world of difference between the retirement of your dreams or an altogether more challenging experience."