Expats' choices in 2023 will be guided by their financial worries and desire for a balanced lifestyle
The insurance company Cigna conducted a survey of expats' expectations, which it published in the report “Burned Out Overseas – The State of Expat Life 2022.” It reports that the last effects of the pandemic have increased expats' levels of stress and burnout to the point that, for 2023, expats want a more balanced lifestyle. 75% of those who plan to move overseas in 2023 or 2024 say that the pandemic really made them re-assess their priorities in life.
In particular, the demographic of expats who have been abroad for more than 5 years now prioritizes being closer to their families. Arjan Toor, the head of Global Individual Health at Cigna, says that companies will have to “re-evaluate how they structure expat assignments” in order to put family and personal issues at the forefront.
Financial worry is also a big issue. Less than 40% of the expats surveyed by Cigna say that they feel confident about their financial situation, with the level of confidence being particularly low in expat destinations with a high cost of living (e.g., Switzerland). These sentiments are echoed on the forum of Expat.com, where expats share how they've been dealing with inflation. Genahoney, a Filipino expat in Japan, for instance, said that she's had to find additional sources of income because her family's weekly food budget increased by 3000 yen (around 22 USD) in 2022.
Expat's predicted priorities in 2023 will affect their choice of destination
Expat destinations like Canada and Malaysia will likely keep increasing in popularity in 2023 because of the aforementioned priorities. Not only is Canada increasing the pathways for economic immigration, but it is also making family reunification easier, for example, by expanding parent and grandparent visas. Various sources – the relocation company AGS Déménagements, Cigna, the Boston Consulting Group, etc. – rank it among the top expat destinations of the near future. As for Malaysia, Bloomberg reports that the affordable cost of living there is attracting many expats who are struggling with how expensive life is in Singapore, Hong Kong and Japan.
On the Facebook group “KL EXPATS (Kuala Lumpur/Malaysia),” an Indian expat currently in Tokyo asked for advice about moving to Kuala Lumpur in early 2023. His main concern is communication, that is, if he will be able to find enough English speakers there. He also enquired if shifting from Japan to Malaysia is an overall good decision. Other expats already in the country replied that it shouldn't be hard to find people who speak at least some English and that the cost of living will be easier to bear. However, some warned him that it would be more crowded than Japan and that his career advancement opportunities might be less than in his current country of expatriation.
In contrast, a lot of uncertainty prevails over the popularity of other expat destinations in 2023, notably China. Cigna's survey says that the country now interests only 1% of prospective expats because of how, at the end of 2022, the pandemic and border restrictions still haven't been fully lifted yet. On the Reddit thread r/shanghai, a prospective expat asked if Shanghai will still be “fun from a study abroad perspective” in 2023 and if there are still expats there. He received mixed answers that, while there are still expats in the city, the numbers are much lower than before and that “increased nationalism” might make it harder for young newcomers to succeed there.
The expat population is getting younger as more digital nomad visas are launched
The global expat population is expected to keep getting younger in 2023. Cigna's report shows people who are keener on embarking on an expat life are now younger: 37% of those between 18-24, and 34% of those between 25-34. In contrast, only 13% of those over 50 who were surveyed showed enthusiasm about moving to a whole new country. Older expats are more likely to want to retire and return home next year.
The Viva Company, a real estate company that sells homes in Spain, also notes that its current expat target market is different from that of the 1980s. Relying on the data gathered by the British bank NatWest, it says that while most British expats in Spain back in the 1980s and 1990s were retirees, they are now increasingly working young adults between 25 and 35. The data also says that a third of British retirees abroad might return home because of financial worries and homesickness.
The popularity of Digital Nomad Visas is also driving the average age of expats lower. In their research brief “The Digital Nomad Search Continues,” the job platform MBO Partners reports that, in late 2021, 55% of all digital nomads were Gen-Zeners and Millennials between 18-41. This makes sense as younger expats are tech-savvy and more likely to have jobs compatible with digital nomadism (e.g.: graphic design, programming, online education). Multiple countries have only recently launched or will soon launch their Digital Nomad Visas, and these are expected to process the bulk of applications early this year. Spain is expected to launch its Digital Nomad Visa in January 2023, while Portugal's D7 Visa started accepting applications only in late October 2022.
