Thinking of making a break for it to the continent? Retiring abroad is a very attractive prospect. Is there no better way to spend your retiring years than sat on a beach somewhere, or enjoying an authentic continental coffee or two at a peaceful bistro? Retiring overseas is a great way to get away from it all. However, as with any big moves and life changes, you are always going to need to ensure you plan ahead.
As you can imagine, uprooting and moving abroad during retirement is going to be a big upheaval. However, providing you plan ahead and are set on making the move work, there are no reasons why it can’t work to your advantage. Here at Milestone Financial Planning, we want to make sure that you are always ready and prepared to ensure you have the support you need to enjoy the peace and quiet you’ve been working so hard to achieve.
But what are some crucial things you need to keep in kind about retiring abroad? Here’s our quick look at what you should be doing to prepare, and how you can make that retirement break away a real success.
Think About Your Pensions!
Of course, unless you have enough capital to live off for the rest of your life, you will likely need to think about pensions you’ve built up. As long as you have accumulated the required National Insurance credits, you’ll have access to the new state pension when you retire. But does this still apply when you move abroad?
The good news is that – yes – you can still claim your state pension should you choose to retire overseas. It’s very important you let the International Pension Centre know if you are making a move abroad for retirement. You can also ask our team for support and advice, too.
You should be aware that you will lose access to pension credit top-ups should you move abroad on a permanent basis. Otherwise, you can expect state pensions to pay into your bank account. Even better is the fact that you’ll have access to an annual boost if you move to a country in the EEA, somewhere which has social security links to the UK, or if you choose to retire to Switzerland or Gibraltar.
What About Personal Pensions?
The great news about workplace pensions and personal pension pots is the fact that you can access them from anywhere in the world. It’s always a good idea to get in touch with your scheme ahead of retiring abroad, however.
What you’ll need to keep in mind with personal pensions is that they are always payable in GBP. Therefore, if you move elsewhere in Europe, to an EU country for example, you’ll need to covert the cash into EUR. This, of course, means that your pension income is subject to exchange rates at the time.
You should also keep in mind that there may sometimes be fees applicable if you choose to move abroad and claim a personal pension. However, these details should be simple for you to find out from your pension scheme. Once again, our team will be happy to help you look at a pension that will benefit you when it comes to moving abroad.
Research Your New Home
It’s well worth doing plenty of research into the new country you’re moving to. It’s likely you may be moving into a completely different culture, as well as one with a different financial climate. It’s therefore worth taking a close look at what you should expect before you board a boat or plane.
Take a look at what your rights will be as a retiring ex-pat. As the UK is now leaving the EU, for example, some rules may change in terms of residential rights from country to country. However, most welcoming countries will likely make it easy for new movers to get accustomed to new ways of life and financial expectations.
It is always worth consulting advice from the Home Office and Foreign Officer before considering a move abroad to retire. Is it safe for you to do so? Will you be able to move back to the UK easily enough if you need to?
These are questions you should always ask before making any kind of major move abroad. Retiring, of course, is a completely different ball game!
Do You Have a Financial Plan?
Retiring abroad on a good amount of capital is the ultimate dream. However, it’s safe to say that planning ahead financially is a good idea regardless of how much you have available. Do you know that you’ll have enough to sustain you through years of retirement to come? Are you aware of the cost of living in the country you’re moving to? What is its financial stability like? Do you intend to make any big investments while abroad?
These are all things to be keeping in mind as and when you choose to retire. Moving abroad means having to readjust to a variety of factors you might not be familiar with. However, if you plan ahead in plenty of time, there are no reasons why you can’t work retirement to your advantage. It may seem scary at first, but providing you have adequate plans in place, you’ll soon find it to be a hugely liberating experience!
Ready to Retire Abroad?
Even if you are only in the early stages of planning retirement overseas, Milestone Financial Planning will always be here to support you. Do you have a business exit strategy for retirement? What about pension pots and investment plans? It’s time to start making sure you have a financial safety net in place.
It’s likely you’re already planning ahead for your retirement. Why shouldn’t you be? It’s likely to be a very exciting time. However, do make sure to reach out to a financial expert for more advice and guidance before you book any tickets online! Give us a call today on 01246 903053.