Thousands of UK citizens work and live abroad. After some time, these people consider retiring in their residence country or elsewhere outside the UK. But before making this life-changing decision, there are many things you need to consider. Apart from your safety, healthy, and living arrangements, you also need to get your finances in order. After all, the point of retiring is to ensure that you live comfortably on your savings or pension fund.
Most people who retire abroad still have to worry about any remaining assets they have in the UK. The changing financial climate globally does pose a few implications. Also, your source of funds could be impacted by transfers, currency fluctuations, and taxes.
Managing your UK pension
The first major consideration is securing your pension. Most people have multiple pension pots from the state, their employer, as well as a private plan. Expats often consider a pension transfer because it makes accessing the funds more efficient. QROPS, for instance, is quite familiar for ex-pats especially since most financial advisers recommend this option. But, this scheme isn’t for everyone.
While it’s true that there are many opportunities that await those who transfer their pension to a QROPS, fees and exchange rates will apply. For ex-pat retirees, it’s critical to be cautious when considering transferring a pension pot overseas. You need to take the time to research the implications and talk to a reputable financial adviser about it. Like any ordinary investment, you need to assess the risks and make sure you choose what’s best for you on a long-term basis.
Drawing money out of your pension is another matter worth discussing. Although most countries have sophisticated banking systems, note that exchange rates and fees will still apply. You can keep your pension in the UK, or transfer your money into a local bank account. Make sure to weigh the pros and cons of each option so that you don’t unnecessarily diminish your funds.
Managing property left in the UK
Most people retire abroad without any intention of returning to the UK. As such, selling your property in the UK is a good financial move because you can use the money to fund your retirement. Once again, this option isn’t for everyone because it’s always good to have a backup plan. So what do you do if you want to keep your property in the UK?
One option is to rent out your property and release the equity. However, you’ll need someone to manage it while you’re away. The benefit here is that property prices are bound to increase. Additionally, you can keep your property and have a home to return to in case your plans don’t pan out.
If you aren’t sure about what to do with your UK property, you need to consult an advisor. There are plenty of things to consider when it comes to mortgage and property. First, weigh all the pros and cons of selling your home as compared to keeping it. Next, consider the taxes as well as the expenses of keeping the property or renting it out.
