British retiring abroad for the sun
Every year, thousands of British retiring abroad, heading for the sun to settle in places like Spain, Portugal and Thailand. It’s believed as many as 2 in every 5 people who earn over £60,000 a year set their sights on that retirement villa abroad.
Amidst the destination scouting, house hunting and day dreaming, there are a few vital financial steps needed to make sure that the life ahead is as idyllic as you hope it will be.
An offshore bank account can be handy for transferring currency and storing savings. However, they are not the gold mines some people mistakenly believe, as UK law still requires you to declare and pay back any savings to the HMRC.
On the other hand, offshore bonds serve as a handy life insurance policy, bringing together investment funds that are immune from capital gains and income taxes.
Mind the gap
As the cost of living is lower in many of the meccas for British retirees, with sound investments behind you. It is possible to have a comfortable lifestyle. However, advice from a financial advisor with insights into the regulations and economy of your chosen destination is vital. You also need to cushion your investments as much as possible from the vagaries of currency markets.
If you have uncertainty about the move, then keep your house in the UK if possible. Keep it as a parachute for if your retirement abroad is not all you hoped for.
When working out your retirement finances, keep in mind that residency rights and healthcare provision for Brits living in EU countries are very much up in the air since Brexit. Particularly if you have a pre-existing medical condition, private health insurance may be a tricky hurdle for your retirement plan.
Check out the costs of healthcare in your destination as they stand now, but also research the long-term implications.
Watch your QROPS
Using an expat savvy financial advisor is vital in keeping up with the latest rules on QROPS (Qualifying Recognised Overseas Pension Scheme). You also need to be 100% sure that transferring your pension to a QROPS or a SIPP is the right move for you.
Insights keep stressful retirement in sight
Retirement abroad (much like staying in the UK) involves financial planning to make sure you can support your chosen lifestyle. However, the move abroad adds a lot of extra dimensions.
Getting insightful support from a financial advisor with expat experience means you can manage the risks. Make the most of your money and put down solid roots.
Call us today, so we can make sure that your retirement abroad brings golden days, not extra grey hairs.