The newfound freedom after retirement presents a retiree with a plethora of opportunities to reap the benefits of their many years of hard work and sacrifice. Well, according to the National Association of Pension Funds (NAPF, UK), a good number of people retiring today (46%) would consider relocating to a cheaper country to make their nest eggs last for longer. But what does someone need to know and do before parking their luggage and leaving for a different country? Here is a comprehensive guide on how to comfortably retire abroad.
Optimize Your Pension
There are two pension schemes that you need to research about before taking off to a land so far away. These are:
QUNPS (Qualifying Non UK Pension Scheme) -This is an exciting pension scheme that was launched in February 2010. It provides British Expatriates with a number of pocket friendly benefits that were previously not included in other investment schemes. This contribution plan is known to offer added investment flexibility to retirees seeking to gain considerable tax advantages in their sunset years.
Apart from QUNPS, retirees seeking to relocate to another country can subscribe to another pension scheme known as QROPS (Qualifying Recognised Overseas Pension Schemes). QROPS-introduced in April 2006-is a pension plan that allows British expats to transfer their UK pension offshore without attracting huge tax implications. Compared to other government approved pension plans, QROPS is by far the best alternative especially in terms of deferral flexibility, currency flexibility, inheritance flexibility and investment flexibility.
With these two pension packages, you can rest assured of a good retirement experience abroad.
Take a Test Drive
Before you start packing your luggage to your preferred foreign destination, be sure to do your own research about the country to avoid unpleasant surprises once you settle there. It would be advisable to take a short holiday to the destination to get a one-on-one experience with the local conditions. This will provide you with a perfect opportunity to get the inside scoop on housing options, social atmosphere and medical care options available.
Learn the Foreign Accent
Talking of foreign languages, we hope that by this time (if you’re planning to relocate to a foreign country) you’ve already chosen a destination with a big English speaking enclave. You don’t want to feel like an outcast by going to a place full of natives who have a completely different view of the world from yours. (Still, you have to appreciate the local languages and culture for a more enriching experience).
Adjust Your Standard of Living
Some retirees will find that they can afford to sustain high-end lives in other countries. If for instance you couldn’t’t afford to hire housekeepers or gardeners back home, you’ll be surprised to find cheap labour (and other services) in foreign nations (especially in third world countries). Be sure to streamline your standard of living accordingly to sustain your nest eggs for longer.
As we sign off…
If you are planning to retire in a foreign nation and you were wondering (i.e before coming across this post) how to do so without risking too much, it’s our sincere hope that this writeup has quenched your thirst for information. We wish you all the best in your new life!