Moving abroad for longer than an extended holiday may mean having to think about your finances in a different way. Practically speaking, it may be difficult to continue with the same accounts and products that you have had before. So what do you need to consider?
Current accounts
It may be worth getting some financial advice about the current account you may need. Obviously you will need to have access to a different currency, but if you plan to roam the globe rather than stay in one place during your retirement, you will need an account with the flexibility to match that lifestyle.
Pensions
At first glance you may wonder why you need to reassess your pension needs at all. After all, pensions are something to be set up and left for decades, aren’t they? But like any financial product, pensions should be reviewed from time to time to make sure that they offer the best return and value for money.
If you are planning to be abroad for longer than five years, a QROPS is worth looking at. These are overseas pension schemes which offer members of UK schemes the chance to transfer their assets abroad without incurring any UK taxes. Whilst they may be liable to taxes in their own countries, the investor can pick where their QROPS is held, so in effect you may be able to choose how much tax you pay.
Whilst tax is what draws many investors into QROPS, members of these schemes also enjoy other advantages, like exemption from UK inheritance tax and the potential to take larger lump sums than the UK system would allow.
QROPS can also offer you the chance to hold underlying assets in structures that UK schemes do not offer or recognise. Guernsey in particular is known for having a wide range of QROPS options available.
If you have particularly unusual pension needs, a QROPS can be created around your individual requirements, so speak to an adviser about what can be achieved.
Finally, you may find that a QROPS is also worthwhile from the point of view of avoiding currency fluctuations. If you have moved out of the UK, why should you have to keep changing your pension from sterling into another currency?
