British Expat? Is it possible you could return to the UK?

There is now an offshore savings and investment structure that can have massive benefits for any British Expatriate that could possibly be returning to  the UK.    (This is also the case for non-British as well; if you are moving there)

Lets’ say you live in Japan, Hong Kong, Dubai, or Germany or Saudi, wherever. You can now plan for your return with a fully UK approved vehicle that will allow you to take 5% per year as a tax free income for 20 years. What’s more, by planning NOW, any un-used years can be rolled forward. So say you structure correctly now, and return to England in 5 years time, that’s a huge 25% tax free income to be carried forward. And if your retiring, this structure means that should you ever need long term care in the UK, this particular type of savings vehicle cannot be touched by the government. Many, many people already in the UK are now using this as a great way to protect their assets, and any that were expatriates wish they had known about it years ago. You need to have savings or investments of at least 75,000 GBP to qualify, there is no upper limit. If there is any chance you could return to the UK, you should get in touch to find out how you could benefit.

Saving for a comfortable retirement? 

One of the most fundamental issues for an expatriate to think about when deciding on his/her financial planning is to make sure that they are preparing for their retirement. Many expatriates do not get ahead in the retirement race as they are scared of it encroaching on to their standard of living today. With careful planning it is easy to get ahead without hindering your current lifestyle. Don’t think that tomorrow will never come as it comes soon enough and there are so many options open to you. Remember that as an expatriate you can benefit from tax advantages and often defer any tax liability; your capital grows faster.

It is often hard when imagining your retirement to get away from the thought of the pleasure of not having to work anymore and sipping cocktails in the sun, or a beer on the golf course. This dream is great but there is also the serious side of retirement: the planning to pay for its enjoyment. Careful planning can avoid a financial disaster and a miserable retirement.

Rule 1. Don’t panic. No matter what your financial situation is right now, there are plans and solutions available to you to help you do the very best for your retirement. Your expatriate status can give you a significant financial leg up the pension ladder. You will not only feel much better about your future financial security, you will also have set yourself head and shoulders above your peers back home in terms of getting money in place for a comfortable retirement.

Rule 2. Plan. Be realistic – what do you need - £30,000 a year? £50,000? £200,000? A lump sum of £500,000 – it is your financial situation. No one is going to give you something for nothing, and so to ‘earn’ the payout you require you are going to have to save and plan for your retirement.

Now, how many paydays have you got until you retire?

How many days have you got to save towards your pension?

Well, if you’re 40 and you want to retire at 60 you’ve got just 240 pay days...what if you’re 50? Do the math. Oh, and did we forget to mention inflation…? Scary stuff isn’t it!

Nonetheless, don’t give yourself sleepless nights as by saving and investing regular amounts, however small, you can make a difference and avoid financial disaster. For those of you already retired, by carefully investing a lump sum you can maximize your income potential. There are so many more retirement savings options available to you as an expat that give you tax benefits, financial benefits and flexibility benefits. An onshore UK pension plan may force you into buying an annuity but a carefully and appropriately chosen offshore pension equivalent can let you take an income without ever having to buy an annuity. Take a closer look at what is available to you by giving us a call. If you already retired, have not bought an annuity and intend to be an expatriate for at least 5 years, there is great news; QROPS.  

QROPS – Everything You Need to Know About Moving Your UK Pension Offshore

Anyone with a UK pension scheme who now lives overseas as an expatriate, or is planning to leave the UK can now transfer their existing pension provisions into a QROPS (Qualifying Recognized Overseas Pensions Scheme). The financial benefits are massive if planned correctly! By planning in advance you can improve the investment growth, flexibility and future financial security of your pension starting from today. What’s more, in a QROPS you won’t have to purchase an annuity, you can take a lump sum upon transfer and you can leave your un-spent pension to your beneficiaries in its entirety.

EU Savings Tax Update & Solutions

Automatic exchange of information is of course the ultimate objective of the Directive, but a number of the nations have instead adopted a policy of automatically withholding tax from the customer’s gross interest earned. The level of tax withheld on a customer’s account initially started at 15% in 2005, but was quickly raised to 20% in the summer of July 2008. We should all be aware however that it doesn’t stop there; by 2011 the tax automatically withheld will have risen to a shocking 35% unless you plan in advance.

Who is Affected and How?

If you reside in an EU country and you have a fixed interest bearing bank account, saving or investment it is highly likely that you will be affected by the EU Savings Tax Directive. This either means an automatic exchange of information or that you are losing at least 20% of your gross interest annually in order to keep your financial matters confidential.

The good news in all of this is that there are effective and legitimate solutions and structures available to the majority of expatriates whose nest egg and savings are being affected by the European Savings Tax Directive. Some of the solutions that you may be able to explore include special types of portfolio bonds or other investment wrapper type vehicles which can protect your personal privacy and protect the performance of your savings & investments as well.

Every individual’s circumstances are unique and you may or may not be eligible to structure your investments so as to avoid the automatic exchange of information or lose 20% of your gross interest in order to keep your funds confidential. It is essential for you to get a personalized review of your situation. you can reach us on 03 5724 5100 or email.