Governor - I suspect most western European countries have better reciprocal arrangements than the UK - as well as better Welfare and pension provision overall. The situation will certainly vary from one EU country to another though, and I doubt the more easterly members will generally fare so well. The one EU country I'm most aware of is Denmark, where pension provision etc is certainly better than ours (hence the unrest there over their present immigration situation.) But their attitude towards pensioners moving abroad to retire reflects just what Wanderlust has pointed out. I.E. savings in health costs, travel concessions, plus things like prescription charges, reduced adult education fees, winter fuel allowances, free TV licences for over 75s etc etc.
Not least in the UK is the saving in Pension Credit - the means tested 'top up' benefit to state pensions which fall short of a living level here, and which isn't paid abroad. Along with Housing and Council tax benefits.
Tax wise - just to pick up on Lindosfans post - yes the UK government wants our taxes of course. And tax liability does continue beyond pensionable age when combined pension income is over the tax free amount. But the highest level of basic state pension (currently £95.25) is below the single person tax free allowance. As far as I'm aware this is always the case, so that people on basic pension alone, with no other taxable income, are never liable for tax.
Unfortunately interest on most savings counts as income for tax purposes so pensioners who have saved prudently suffer a double whammy. The UK government has made a pathetic attempt to redress this imbalance with a rather complicated version of Pension Credit, which you really don't want me to go into at the moment! None of which explains their continued reluctance to pay what is due to Thailands' Brit expats. And I'm sorry for the rant but it really gets my goat. If the rules were fair and equally applied many expat retirees would have no reason to dodge the system anyway.
![Rant :rant:](./images/smilies/rant.gif)
A sprout is for life - not just for Christmas.