Malta - British Expat Forum

This is a question for any pensioners who have been in Malta before the current downturn in the GBP exchange rate.

With pensions being paid in sterling, and the exchange rate being just about like for like; how much more (percentage wise) do you think it is costing to live, from say a couple of years ago and is it really very much more difficult now to maintain a decent standard of living?


Red

£ : euro has gone from 1.45 to 1.10 in the last two years. Inflation has been say 6-8% for the 2 years combined, so in £ terms, cost of living is about 40% higher than 2 years ago.

2 years ago Malta was typically about 50-75% the cost of living in the UK, its now 75-100%.

One of the biggest savings is that there is no council tax. Malta (and Gozo especially) is much less consumption driven than the UK, so even if many prices are the same now, many people spend less

you will probably spend alot less on heating bills (but then may spend any savings on aircon...)

Thanks Mark that's about what I concluded.

What I was trying to find out from pensioners who have been there for at least a few years, is given their ever decreasing pensions, and the increases in living costs, are they still able to manage, or are they seriously considering selling up to return to the UK ?

I know there is Council Tax in the UK but pensioners probably wouldn't go for very large H band properties, and in cases of hardship might be subsided

Thinking about it, I should probably have been bold and asked the question (in a general way not to cause offence) in Bo Jangles when I popped in in November.

Red

I've heard of people leaving Spain to go back to the UK as Spain is now more expensive than the UK, but not heard of any leaving Malta for the UK on financial grounds - they/we maybe somewhat worse off in Malta than 2 years ago, but its still cheaper than the UK, esp when you factor in council tax and the lower income tax foreigners generally pay.

Hi all,

I was wondering if any pensioners could give me an update how they are surviving in the current economic climate and how much day to day life has changed?

A reply in the 'Times' last week, following the article on the high cost of food, was that a lot of 'Brits' were packing up and returning home to the UK because of the rising costs in Malta. Another point made in the reply was that non Maltese were being charged even more than the Maltese for food; is this seriously true ( Brits returning to UK) or just someone trying to make a point while having a dig at the Maltese ?

I also read a reply by Gozo Mark to a post dated 2008 in the money section, that a couple could live comfortably on £1,000 per month; is this still the case in the light of the utility rises?

I am just looking for real opinions from the members on this forum, as I have more faith in your experiences.

Thank you in advance for any help and advice anyone can give me

Red

I'm not a pensioner, so can't answer your first question - however, if £ 1,000 was the right figure mid last year, then it would be around £ 1,200 now due to fall in £ from 1.25 to 1.1, and inflation.

Foreigners overcharged ? not come across it

If you want to check the cost of items in Malta, the following on the recommended suppliers forum should help
http://www.britishexpat.com/expatforum/malta/viewtopic.php?t=9156

Brits I know who are leaving aren't doing so because of higher prices, but because of losing jobs, or businesses folding - ie its causing people who moved to Malta to work to move back to the UK, not those who moved here to retire.

What I wrote in April on this thread ie "2 years ago Malta was typically about 50-75% the cost of living in the UK, its now 75-100%." remains valid as there has been negligible inflation since then, and the exchange rate is the same (ie 1.1)

RED,

It is just a simple case of what standard of life one wants. Yes some things are far more expensive here in Malta, and some things like no community charge, cheaper road tax, etc, seems to even things out.

Good, large, almost new 3 bed rental apartments vary from 300 euros - 1,000 euros per month, depending on the area. If one uses the air-con on a regular basis, then the bill will be high, the same goes for unecessary use of water. Shopping in the larger supermarkets is a lot more expensive than in the smaller local supermarkets. Many furniture shops are a lot cheaper than others, with very little, if any difference in quality. unleaded fuel is just a little cheaper in Malta. An expensive brand new vehicle, will soon rattle and roll, like any reasonably priced second hand vehicle

It is easy to spend a fortune at one of the allegedly ' better ' restaurants, rather than a reasonably priced good meal at an allegedly inferior restaurant. Eating / drinking out a lot will obviously work out expensive.

We always remember the fact that we are retired here in Malta, and not on a permanent hiloday

Thank you Mark and Central Lad,

Your comments are most helpful. I had to laugh at the piece about the brand new expensive cars, but, sadly I know how true that is!

Red

Red

It's all about the kind of lifestyle you are hoping for, as GM has mentioned in other forums.

You can live cheaply in Gozo and Malta, without the stigma.

In UK for instance, if you run an old banger you are classed as a second class citizen, as with the clothes you wear, the food you eat or if you are over 50!

In Malta and in Gozo particularly, this does not happen.

I would say to you and others thinking to retire in Malta & Gozo, budget for the same amount as you would in UK, you should then be comfortable with a bit to spare for a rainy day

On the other hand don't go if the primary reason is to live more cheaply.

Find your last paragraph interesting, John

We do not live like hermits, but we find overall standard of living much cheaper in Malta / Gozo than in the UK. But maybe thats just us

Things have been getting tight and there have been a few on basic pension returning to UK as food is so cheap there.

Hi Cari, and welcome to the forum

The basic UK state pension is around £ 5,000 pa for a single person, or £ 8,000 for a couple. Unless people are moving back to live with family, or into public sector housing, I can't see that being sufficient to live on in the UK, even if food is cheaper.

Cari

When living in the UK we found that rent, community charge, electricity, gas, and water bills, were the killers Plus the car road tax, insurance, and servicing, was so much more expensive in the UK than in Malta. Plus our bins / rubbish was only collected fortnightly, and charged extra for having too much rubbish for collection ( the stealth taxes are everywhere ).

any updates on this from the OP

Seems to me that on a UK couples basic state pension alone - Brit retirees would struggle to survive a basic lifestyle in Malta?

UK pension as of April 2011 will be approx £5200PA (single)£8320PA (joint couple) plus any small top up's from winter fuel allowances

It would seem that Brits retiring in Malta, you'd definitely need extra resources from private pensions, savings, investments or capital