Planning for your expatriate retirement

UK workers who’ve dreamed of an affordable retirement in the sun shouldn’t need to give up because of Brexit.

Admittedly, the advent of some kind of Brexit in six months from now will change the plans of many Britons in many ways, but with careful research and planning it’s still possible to live the dream in an overseas location. One of the most important considerations is the British state pension, without which many would-be expats would have to forget about a retirement in the sun. Right now, it seems those moving to European Economic Area countries will have their state pensions uprated, at least during the two-year transition period and should be able to receive it without problems.

However, pensioners looking to emigrate are being advised to ensure they are legally non-resident and non-domiciled in the UK in order to avoid unwelcome tax demands from Her Majesty’s Revenue and Customs department. Those who intend keeping hold of their British property and those who intend to return at some time in the future are most at risk. It’s not certain yet if expats who intend to keep on a British bank account will also be included in tax demands.

Planning every aspect of your retirement before you book the removal van is the best idea, particularly as regards your expected standard of living. It’s especially important if your working life has included stints overseas, either for your company or as part of your long-term career. In this case, if you’ve worked in several locations for a single company, your work-related pension should be in order, but if you’ve changed employers several times over the years, it’s trickier to keep a track of your pension pot and you may need professional advice.

A recent survey revealed as many as 33 per cent of Britons who’ve worked abroad haven’t kept track of their pension pots and will need professional financial help to get it together by the time they retire. Getting this sorted out before you emigrate will at least help your financial situation should a hard Brexit delay payments of your British state pension. As regards calculating how much you’ll need to live comfortably overseas, online comparison websites and expat forums give updated information on the cost of essentials as regards food, essential services such as electricity, and much more. The majority of expat favourite destinations are cheaper than the UK, even before the Brexit effect kicks in.