Some 38% of 45-64 year olds – or 5.4 million – would consider purchasing an overseas holiday home up from 30% in August 2006.

However, only one in ten or 592,400 said they definitely planned to buy abroad.

The study found that the majority of would-be buyers would prefer to keep their roots in the UK and not move abroad permanently. Nearly two thirds (62%) would stay in their overseas holiday home abroad for between three and six months a year while a fifth (19%) would use it for no more than three months a year.

On average, those considering buying a holiday home abroad would spend £116,846 on the property with the vast majority saying they would purchase the property outright, rather than with a mortgage. Over a third (36%) said they would use savings to fund the purchase while nearly a quarter (24%) would downsize in the UK to release the funds required.

A quarter (26%) would rent out their property when they weren’t using it.

Spain topped the list of most popular destination among future retirees, with over a quarter (26%) preferring to purchase a home there, followed by France 16% and Italy 10%.

James Yerkess, HSBC head of foreign exchange, said: “The economic downturn has had an impact on the income and savings of many but it has also helped lower the price of property in numerous overseas locations.

“Many of the baby-boom generation, who are now approaching retirement, are fortunate enough to remain relatively asset-rich despite recent economic frailties and this has opened up opportunities to take advantage of lower property prices abroad.”