Planning To Retire Abroad

It is estimated that by 2020 one in five adult Britons of retirement age will choose to retire overseas.

If you’re thinking of escaping the dismal weather and high living costs by retiring abroad when the time’s right here are 10 top tips to help you plan your escape!

1) You can receive your UK state pension entitlement if you retire to one of the countries in the EU or another of the countries the UK has agreements with - for example the USA.  If you choose to retire to a country with which the UK does not have an agreement you may still receive your state pension income but it may be frozen and will not rise in line with the Retail Price Index.  Countries such as Australia, Canada, New Zealand and South Africa do not have agreements, and retired British expatriates in these countries are unfortunate enough to have frozen state pensions.

You can contact the Retirement Pension Forecasting and Advice Unit to work out what your state pension entitlement will likely be when you come to retire and this may assist with your budgeting.  Their telephone number is (+44) 191 218 7585.

2) Consider your tax status.  Will you be earning or receiving a pension income that will take you over the UK income tax personal allowance?  Depending on the country you’re planning on retiring to you may have to continue to pay some UK taxation.  It’s worth speaking to an independent taxation or financial adviser to check your tax position and find out about the options available to you to reduce or negate your UK tax burden.

3) Think about opening an offshore bank account - there are potentially many offshore benefits available to you when you expatriate and you should take full advantage of these options in order to secure your future financial status.  An independent financial adviser will be able to talk through the options that you are entitled to explore and help you determine the best course of action.

4) If you are entitled to any welfare payments from the UK government you need to find out whether you will be entitled to these when you retire abroad.  Speak to your local benefit agency to find out more. 

5) Find out about health care costs in your chosen retirement destination.  Some countries have a basic state health scheme; others like Spain have agreements with the UK that enables retiring British expatriates to have access to health care services for free.  In most other countries health care is not free and you may need to consider investing in health insurance in order to ensure you get the best care possible at all times.  There are so very many providers of health insurance globally that it is imperative you do significant research into what is available and from whom and at what cost.  An independent financial adviser will be best placed to examine the market place and make recommendations for you.  Don’t forget to inform your local medical and dental practitioners of your decision to retire abroad.  Make sure you have check ups before you go.

6) Get your house in order - literally!  If you are selling up then you need to begin the sale proceedings before you go or at least appoint an estate agent to manage the whole process once you’re gone.  If you’re renting your property make sure you terminate your contract by giving the correct notice period so you do not incur any financial penalty.  If you intend to let out your house or leave it empty you will need someone trustworthy to look after the home and you will need to change your insurance to reflect your decision.

7) Contact your local council tax department and also the electoral register of your decision to leave the country, supply them with your new address overseas.

8) Don’t forget to sort out all your final utility bills as well!

9) Remember to inform your bank, building society, insurance company and anyone with whom you have a policy, contract or agreement of your pending move and give them your new address.

10) Finally, you can have your post redirected overseas by the Royal Mail.  Go to the post office in plenty of time to get the redirection service arranged.

If you would like to speak to an independent financial adviser to find out about health care costs, your offshore options, your pension or any other ‘money’ and ‘tax’ concerns you have before you go, then please complete our advice form with your details and an adviser will contact you at your convenience.  If you have already expatriated we have access to advisers globally and can put you in touch with one should you have need for their services, again, simply complete our advice form and we will be in touch.

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