Many of our clients are expats who have lived and worked in the United Kingdom for a number of years and contributed to a pension fund during their time there. In addition, many of these people, while they have loved their lives in the UK, want to spend their remaining days where the sun shines all year round, and this means leaving what has been their home for many years. However, though the idea of whiling away lazy afternoons with sundowners in a picturesque setting is beautiful, there is a great deal of planning that must go into this dream to make it a reality.
If you’re looking to retire abroad out of the UK, no matter where you go, bear some of these in mind:
The first thing that you need to think about is how you are going to take your pension funds out of the UK. In recent years, this has been made possible with QROPS, which IFAs like Carrick Wealth facilitate. This is perhaps the most vital part of your retirement planning so make sure you use the services of an IFA that has your best interests at heart.
Furthermore, as we all know, the cost of living in the UK can be vastly different to cost of living in other locations around the world. Whether you intend to move to a place where cost of living is higher or lower, ensure that a) you have enough funds to last you through your retirement years and b) you plan thoroughly for how you are going to spend your money so that you don’t run out.
In addition, growing older and becoming less able to do things is a reality we must all face. At some point during your retirement you are going to need health care and if you’re lucky, you’ll be moving to a country where national healthcare is a priority. However, even if the national healthcare is good, you’ll still need to budget money for private healthcare.
Of course, there are a number of administrative tasks that expats will need to sort out themselves before moving, such as the need to have a place to stay. However, renting initially may be the way to go while you’re still figuring things out, such as house prices within the area and country.
Additionally, moving to a new country creates a whole lot of red tape. You’ll need to ensure your passport or visa is in order, as well as documentation like driver’s licenses and work permits if you intend to carry on working.
Moreover, you need to ask the question – are you going to ship over all of your possessions or only some of them? You’ll need to work out how much it costs to ship items versus how much it will cost to buy new items there.
Finally, whether you’re moving alone or not, you’ll need to consider family. The cost of moving a few people will obviously be higher than just oneself, but even if you’re going alone, you’ll likely want to make plans to see your family from time to time, and this will cost money.
For more advice on retiring outside of the UK, contact Carrick today. We are an IFA with a wealth of experts that specialise in helping people secure their financial futures.