Ah, the joys of a British summer. There's nothing like the feel of a cooling breeze on your face and the drizzle in your hair as you bravely attempt to barbecue under an umbrella. It's no wonder so many of us dream of retiring abroad.

However, while anyone who has settled in the sun will tell you, it's not all sandy beaches and sunny days (although there are plenty of those) there are also some serious pitfalls you need to be aware of.

So what financial dangers are lurking for overseas retirees?

The major risk is to your state pension. In some parts of the world, moving overseas will see your pension payments frozen, so it won't increase in line with inflation as it would back home. You will be OK if you are moving to the EU, or a country which has an arrangement with the UK. However, there are some very popular destinations without arrangements - including Australia, Canada, New Zealand and South Africa.

To put that in perspective: if your state pension is frozen, then after 20 years it will buy roughly half what it did when you first retired.

Andrew Tully, Senior Pensions Policy Manager with Standard Life warns: "Retiring abroad is a dream for many people but without careful planning and advice, things can potentially go wrong very quickly."

He has issued an advice checklist.

1. Check what basic state pension agreements are in place with the destination country, if any (check with the Department for Work and Pensions).

2. Inform your social security office, HM Revenue and Customs, and the Department for Work and Pensions when you move and provide your contact details abroad.

3. You can get a forecast of your state pension by completing a BR19 form or go to www.thepensionservice.gov.uk. If you are already overseas, complete form CA3638 or call The International Pensions Centre on 0191 218 7777.

4. Find out about welfare rights abroad. Some UK benefits are not payable outside the UK, others apply only in the EU or in countries which have agreements with the UK.

5. Find out more about healthcare costs in the country you want to move to.

6. Get financial advice

To that it's worth adding that any planning process needs to start with a realistic budget. You need to work out what income you need to live on in your new home. This means travelling to your chosen retirement spot and doing your research on the ground (which shouldn't be too much of a hardship). You need to appreciate the realities of life in your new home, and the income you need to enjoy your life there.

In some instances living costs will be much lower. However, it's worth also looking at the costs of things like healthcare and long term care, because if you've chosen a retirement in the sun the last thing you need is to have to move back to drizzly Britain if things get tough.