Did you know that around 33% of over-65s worry about running out of money in retirement?
Interestingly, this age group is more relaxed than British adults as a whole (50%!). Perhaps the further away retirement seems, the more intimidating it appears to support one’s lifestyle.
How much can you safely withdraw from a pension? The “4% Rule” is a common principle financial planners use to determine a sustainable withdrawal rate. However, the rule is often misunderstood and may not always suit every client’s case.
The arrival of the Labour Party to UK government on 5 Jul 2024 marks an important moment for the economy – and, by extension, British households (both at home and abroad). A new legislative agenda could bring new rules and policies about taxation, spending and borrowing. Below, we discuss how the Labour government could affect British expats.
For many people, pensions will be the “bread and butter” of a retirement plan. In 2024-25, pensions are still widely regarded as highly tax efficient, helping savers in building long-term wealth. Yet, what are alternatives? How do they compare to pensions?
One of the challenges facing many British expats is how to start and build a pension. Living overseas can make it more difficult to access many of the benefits available to those living in the UK (e.g. tax relief on pension contributions, which becomes subject to the “Five Year Rule” once someone becomes a non-resident).
One of the great benefits of living in the UK is that an individual can access their pension benefits from age 55 and withdraw up to 25% as a tax-free lump sum (in 2023-24). However, what happens if you move abroad? Do you still enjoy the same tax benefits?
If you are a British expat in Spain (or elsewhere abroad), you may have heard the word “QROPS” when considering pension planning. QROPS is shorthand for “Qualified Overseas Recognised Pension Scheme” and is commonly used to refer to an overseas pension scheme which could be a suitable destination for a pension transfer.
For British expats retiring to Spain (or another country), one of the key questions to answer is what to do with your pension. Should you keep it in the UK, drawing an income from it whilst abroad? Or, should you “take it with you” – i.e. transfer it overseas? The latter option can be done using a Qualified Recognised Overseas Pension Scheme (QROPS). Below, our Valencia financial planners at Scottsdale explain how QROPS works for British expats in Spain and how it can feature in a wider retirement plan.
A retirement in Spain needs a reliable, sustainable income. The UK State Pension can be a valuable income stream for many UK expats residing here. Yet what are the rules governing it? How can you get the best State Pension deal as a British expat?
Spain is the most popular destination for UK expats looking to retire, attracting over 1,000 retirees every month. As financial advisers here in Murcia, Costa Blanca and Almeria we fully understand why! The weather is warmer, the lifestyle is relaxed and the cost of living is around 21% lower. However, before rushing abroad, it is important to have a robust financial plan in place.