By David Cooper, Fund Advisers Europe
Plan for the future—that’s where you are going to spend the rest of your life!
Regardless of your age, retirement planning is essential in order to be prepared and comfortable in the golden years of life. Systematic and early retirement planning can reduce your financial burden during the post retirement years and help you plan for a carefree and financially secure post retirement life.
Expatriates are Vulnerable
Expatriates are vulnerable when it comes to saving for retirement. For an expat to be eligible for a state pension, they have to pay into it. But if they then move location they risk losing their contributions in the previous country. You can only take 25% of a UK pension as a UK tax-exempt lump sum; and on your death, the residual value of a UK pension is passed to the State rather than to your heirs.
How do I start planning for my retirement?
The sooner you start to plan and save, the more you will eventually have to retire with and the sooner you can stop worrying about your future. Decide how much income you require to live comfortably in your post-retirement years, determine how much you need to save regularly, starting today, to have the right amount. Then select the right retirement plan, which will help you meet your post-retirement requirements.
What are the types of financial options for retirement planning for expatriates?
- Offshore Pension Plans. Expatriates who are seriously considering future financial security need to understand all about offshore pension plans. An offshore pension provides access to a wide range of unit trusts to allow you access to the bond, equity, property and commodity markets.
- QROPS. If you are nearing retirement and are looking to retire in a different country, or already live and work abroad and have stopped paying into a UK pension scheme, there is a transfer option known as QROPS (Qualifying Recognised Overseas Pensions Schemes). QROPS are overseas schemes which HM Revenue & Customs (HMRC) allows UK pension schemes to be transferred into and may be appropriate for expatriates.
- SIPPs. A Self-Invested Personal Pension (SIPP) is a government approved personal pension plan. A SIPP allows individuals to invest their pension as they see fit. SIPPs also allow pension funds to be passed onto children after death and the individual can choose whether or not to buy an annuity.
- Offshore Investment Bonds. Although pension schemes are an essential element of retirement planning, they are not always the most suitable solution. If you are self employed or receive regular commissions/bonuses, consider using an offshore investment bond as your offshore pension policy. Offshore investment bonds allow you to invest into a much wider range of specialist investment funds.
- QNUPS. A QNUPS is a Qualifying Non UK Pension Scheme, which can be a perfect tool for expats looking to reduce tax liabilities on their estate. QNUPS allows British Expatriates to save money on taxes in their country of residence, on UK inheritance tax, along with a number of other benefits.
For more information, click here to receive a free copy of our new Planning For Retirement guide
Fund Advisers Europe
Rue de Contamines 35
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www.fundadvisers.eu
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Author Bio
David Cooper is a Director of Fund Advisers Europe, a Financial Services company offering a broad range of Investment and Insurance Services to clients across Europe and Latin America. The majority of David’s early experience was gained by working for Lloyds Bank in the United Kingdom. David now has over 20 years' experience growing wealth management brokerages throughout Europe, the Caribbean and Latin America. The primary objective of his role at Fund Advisers is the creation of growth in Fund Advisers’ Wealth Management & Discretionary Fund Management division. David lives in Geneva with his family.
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