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Retiring in the Sun: 5 Top Financial Tips

f Madeira in warm evening sunshine light.

The low cost of living in many gorgeous sun-kissed countries like Portugal and Thailand makes them ideal for enjoying retirement abroad. With some smart investment – and the right financial planning at the start – it can be easy to make the most of your savings and enjoy a genuinely relaxing retirement somewhere beautiful abroad. Here are five key details to think about:

Find the Right Advice

There’s no need to plan your finances alone. Certain financial advisory services like Forth Capital actually specialise in the complexities of expat finances. Once you’ve found the right qualified financial advisors, ask them about the points raised in this list and they can help lead you through every step of the process.

Qualifying Recognised Overseas Pension Scheme

QROPS (Qualifying Recognised Overseas Pension Scheme) are pension schemes established outside the UK designed for expatriate retirees. Being outside the UK means QROPS can potentially avoid many UK taxes and savings caps, meaning you could benefit from substantial tax savings.

However, it’s important to check the scheme is officially recognised. The HMRC has strict rules and every month updates its lists of what international pension schemes qualify as QROPS.

Offshore Savings Accounts Don’t Make Great Savings

Many banks offer savings accounts based in tax havens like the Isle of Man or the Channel Islands. While these countries have lax tax laws, UK law actually requires you to declare and pay back any savings to the HMRC.

However, an offshore bank account may be useful when it comes to transferring currency. Saving money in the currency that you expect to be withdrawing it, for example Euros if you’re living in Europe, saves the risk of losing money on exchange rates.

Offshore Bonds Do Make Great Savings

Offshore Bonds are convenient forms of life insurance policies that consolidate a number of investment funds that aren’t subject to capital gains and income taxes. This means offshore bonds can provide retirees abroad with substantial savings.

Alternative Investments

Wine, art, stamps: there are plenty of high value items that are expected to increase in value over time. The right alternative investment can potentially make high value returns when sold. If you choose something that interests you, like classic car collecting for example, you can combine your life saving investments with your hobby.

Show 6 comments

May 6, 2017

Thanks for the tips. This present time no matter how old or young we are, we really have to consider being knowledgeable when it comes to finance and insurances. That way, you’ll never regret having one in your life. This is very important.

May 6, 2017

Good to know you mentioned Thailand and Portugal as an ideal place to retire in Abroad, however, if you have not enough money, you cannot stay for long. You will end up coming back to your country. I go for alternative investment as I can choose investment based on my passion or that things I can comfortably sell and do.

May 7, 2017

I am not retiring anytime soon but thank you for the heads up. The tip that got me was on money matters.

May 7, 2017

Thank you for such an informative article! I’m still in my early 20’s but I’m already trying to find some good investments I could benefit when I retire someday. I’m considering the stamps since I’m a collector myself.

May 7, 2017

It’s good to know all of this tips. Though I am not from UK, the thing is it’s very nice to retire and do some relaxing abroad. But for me, it’s quite expensive in my part to retire abroad due to high living cost as I am from the Philippines.

May 8, 2017

Some of my clients have been asking me about retiring in countries like the Philippines, Thailand, or Malaysia. I have only been to two out of the three. I am no financial adviser, but I think the info here can definitely help my clients in making their decisions.

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