Offshore Banking Updated:
If you're approaching retirement, you're probably starting to think about the various options open to you, particularly in light of the pension flexibilities introduced last week. Many people have dreams of retiring in the sun, and there's no reason you can't make that dream a reality!
Of course, that's not to say it'll be an easy decision, and nor will it come without financial implications. You'll still need to think about how you'll secure a retirement income – will you transfer your pension abroad, for example – and even the complexities of actually buying a foreign property will require careful consideration.
First up, your pension. This is an extremely complicated area and will require tailored financial advice, but it's safe to say that, like international money transfer, transferring your pension scheme abroad will come with a whole host of factors to consider.
You may like to fully transfer your pension to a qualified recognised overseas pension scheme (QROPS) if you're cutting all financial ties with the UK, or alternatively, you could keep your current scheme and purchase an annuity or arrange income drawdown, as long as you ensure you can access the funds overseas.
Then there's the possibility that you'll want to take full advantage of the freedoms and withdraw your entire pot in one go, perhaps in order to buy that foreign home in the first place. This will require particularly careful consideration as you'll need to ensure you have some other method of securing a retirement income, because otherwise you simply won't have the retirement you're dreaming of.
No matter which route you're thinking of taking, seeking the right kind of support is vital, as these will be decisions that can affect the amount of income you receive for the rest of your life.
Then you'll need to think about how you'll actually buy that retirement home in the sun – and we don't just mean your cashflow situation! Having the funds to hand is one thing, but getting the cash abroad, and arranging everything that goes along with a foreign property purchase, is quite another.
You'll need to consider everything from international money transfer to having suitable offshore bank and savings accounts, and if you're keeping ties with the UK, you may need to think about making regular payments for property maintenance and mortgage costs, etc.
Again, this will require careful consideration, and more often than not, the help of a specialist. This isn't the type of thing that can generally be arranged single-handedly, but if you've got the necessary support available, it can be far less stressful.
Knowing how you'll retire abroad and making the necessary arrangements may not be easy, but once it's all sorted, you can look forward to spending your post-work years in the location of your dreams.
Compare offshore savings accounts
Find offshore bank accounts
Speak to the international money transfer specialists
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.