Many British expats prefer to follow their dream lifestyle rather than save for their retirement when working abroad.
High incomes and low taxes leave expats with plenty of cash, but they may pay the price for their lavish spending, warns financial firm Standard Life.
Researchers looked at the lifestyles of British expats in Singapore and found they lived for today and gave little thought to funding their retirements.
The study pointed out that salaries in expat destinations like Singapore, Hong Kong, Saudi Arabia and Australia are much higher than in the UK.
However living costs are rising and expats tend to spend more rather than cut back – with much of their money going on lavish holidays and expensive travel.
Expensive luxuries
A massive 85% of British expats earn more overseas than they would at home, but 25% fail to set aside any savings for retirement.
A fifth of their monthly spending goes on holidays and travel.
Any savings tend to be for short-term lifestyle and leisure expenses.
Private school fees are another major cost. Expats favour private education to give their children continuity as they move around, while many local governments ban expats from state schools. Private schools realise this and are escalating costs for expats.
Neal Armstrong, CEO Standard Life Singapore said: “Expats live among the world’s most expensive cities. Spending too much on expensive luxuries is and to keep up with other expats is an easy mistake to make.
“The costs of an extravagant lifestyle and travel can soon add up – which seems to be why around one in four expats have no pension or retirement savings.”
In a happy place
Another study, by Lloyds TSB International, reveals where expats are happiest.
The Channel Island of Jersey tops the poll, while many who now live in America enjoy a lower cost of living.
The United Arab Emirates rates highly, but some expats are less happy with the standards of education offered in Dubai and Abu Dhabi.
Generally, 74% of British expats reckon they now have a better lifestyle, with 52% earning more than they did in Britain and half reporting a lower cost of living which increases their spending power.
Nearly two-thirds confessed they felt happier living overseas than they did in Britain.
France came top for quality of live with an 89% satisfaction vote, while Jersey headed the happiness table with 73% rating.
About John Cassidy
