Saving for a comfortable retirement!
One of the most fundamental issues for an expatriate to think about when deciding on his/her financial planning is to make sure that they are preparing for their retirement. Many expatriates do not get ahead in the retirement race as they are scared of it encroaching on to their standard of living today. With careful planning it is easy to get ahead without hindering your current lifestyle. Don’t think that tomorrow will never come as it comes soon enough and there are so many options open to you. Remember that as an expatriate you can benefit from tax advantages and often defer any tax liability; your capital grows faster.
It is often hard when imagining your retirement to get away from the thought of the pleasure of not having to work anymore and sipping cocktails in the sun, or a beer on the golf course. This dream is great but there is also the serious side of retirement: the planning to pay for its enjoyment. Careful planning can avoid a financial disaster and a miserable retirement.
Rule 1. Don’t panic. No matter what your financial situation is right now, there are plans and solutions available to you to help you do the very best for your retirement. Your expatriate status can give you a significant financial leg up the pension ladder. You will not only feel much better about your future financial security, you will also have set yourself head and shoulders above your peers back home in terms of getting money in place for a comfortable retirement.
Rule 2. Plan. Be realistic – what do you need - £30,000 a year? £50,000? £200,000? A lump sum of £250,000 – it is your financial situation. No one is going to give you something for nothing, and so to ‘earn’ the payout you require you are going to have to save and plan for your retirement. Now, how many paydays have you got until you retire? How many days have you got to save towards your pension? Well, if you’re 40 and you want to retire at 60 you’ve got just 240 pay days...what if you’re 50? Do the math’s. Oh, and did we forget to mention inflation…? Scary stuff isn’t it! Nonetheless, don’t give yourself sleepless nights as by saving and investing regular amounts, however small, you can make a difference and avoid financial disaster. For those of you already retired, by carefully investing a lump sum you can maximise your income potential. There are so many more retirement savings options available to you as an expat that give you tax benefits, financial benefits and flexibility benefits. An onshore UK pension plan may force you into buying an annuity but a carefully and appropriately chosen offshore pension equivalent can let you take an income without ever having to buy an annuity. Take a closer look at what is available to you by using our investment designer. If you already retired, have not bought an annuity and intend to be an expatriate for at least 5 years, there is great news.
