Retiring abroad – What you need to consider

Retirement creeps up on all of us. We regularly see young people who believe they have years ahead of them before they need to consider investing and saving for their retirement.

Of course, having a pension is a good start, but your overall plan needs be taken into account. Do you dream of an idyllic, sun-drenched retirement or plan to spend your golden years enjoying the fast life? However you plan to spend your retirement years, you need the financial security to whatever you wish.

We have a few key considerations for you, no matter if retirement is around the corner or years away.

Why should I plan for retirement as early as possible?

If you are not sure of your retirement plans or in which country you want to retire, that does not mean you can’t start making sensible decisions now.

The earlier you start laying the foundations for retirement, the better. It’s as simple as that. Many people believe they can rely entirely on pension products. However, if you add over 10 years of savings to the same pot, you will have a much larger fund when your retirement years arrive.

You should also consider how your retirement plans might change. For example, a substantial nest egg will make it much easier to:

• Travel or relocate.
• Decide if you would like to retire sooner.
• Cover unexpected costs and future medical expenses.
• Have fun!

The ideal position to be in is to have saved enough for your retirement plan to do all the above. By seeking professional and tailored financial advice, you will be in the best possible situation to get there.

The more time you have to allow your savings to flourish, the greater the chance to see higher returns and increase the size of your nest egg.

Do I need to amend my pension if I choose to move abroad?

Whether you are already an expat or plan the big move after retirement, it is important to seek professional advice, as there are a few considerations that will affect your retirement if you decide to move abroad, including:

• Tax-efficiencies and rates on your particular pension – which may change if living abroad.
• Deciding which source of income will you use for general living expenses once retired.
• Considering currency exchange rates and how they could affect your pension if it remains in your home currency.

These are just a few points that can affect the retirement strategy for you upon moving abroad. Working with a wealth manager with skills tailored to your needs is crucial to understand your pension options in your home country and wherever you plan to retire.

Which parts of retirement planning do I have to consider in later life?

Only a few years of carefully and professionally managed investments and proactive decisions could dramatically change your financial situation ready for retirement.

Whenever you sit down to reassess your retirement, even if the time is nearing, it’s essential to think about:

• The age at which you want to retire, and whether you will stop earning completely or have other income streams.
• What is the total retirement budget you currently have, and what amount do you want to have when you retire?
• Consider your options when it comes to using your assets, capital and investments to increase your total nest egg.
• How and where are your savings currently held, and are their products or investments on the market with higher returns or improved tax exposure that would immediately increase your retirement fund?

The key to successful financial planning is to assess where you are and what you need to get where you want to be. Because even if you have already retired, this does not mean you can’t change your plans and figure out how to adapt your wealth management strategy to suit your lifestyle needs.

All this consideration can seem overwhelming, but is so important. Most people are retired for over 30 years, so it is crucial to invest your energy and money in professional and tailored financial advice.

If you are looking into your retirement plans and options, and would like professional advice on creating an all-encompassing strategy to ensure that you achieve your pension goals. You can contact the Lawsons Equity team to arrange a free consultation with one of our international wealth management experts.

Lawsons Equity – Financial Planning Malta

Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change.

The value of investments and income from them may go down. You may not get back the original amount invested.

Lawsons Equity Limited is a company registered in Malta with company number C49564 and licensed by the Malta Financial Services Authority as Enrolled Insurance Brokers under the Insurance Intermediaries Act 2006, and to provide Investment Services under the Investment Services Act, 1994.

Lawsons Equity Ltd have passported their services across the EU. To see a full list of countries click here.