A recent survey conducted by the people at Aon Consulting found that more than half of the people quizzed had dreams of eventually leaving the UK and enjoying their retirement abroad.
From our faltering economy to government austerity measures, and of course the age old problem of English weather, there are a number of factors that are no doubt leading to people wanting away.
Planning an exotic retirement itself requires a lot of thought. Deciding on a destination is usually priority number one, but of course the main factor that will decide whether you can have a successful time abroad is money. Yes, to achieve your goal you will need a healthy amount of savings tucked away in the bank. However saving money is not always easy, especially in these tough times, and for this reason we have thought of a few ways that could help you amass the pension pot that will enable you to live out your dream retirement.
Firstly, you must take a detailed look at your financial history and endeavour to forecast your financial future. You will need to figure out how much money you feel you will need to retire comfortably on, and then begin to reach that target. If you worry that you may struggle to save enough money there are always ways to bolster your finances. You could begin by looking at ways you can supplement your income. You may have a spare room you could let out in your home, also you could consider taking on a small part time job once you enter your retirement, something that isn’t very strenuous and will earn you the money that will make the difference between a tight retirement and a comfortable one.
It will also pay to examine the different pension options that will be available to you should you move abroad. A QROPS (qualifying recognised overseas pension scheme) is a fantastic option for foreign retirees. Providing you are indeed venturing abroad, HMRC allows certain pensions to be transferred into a QROPS, which then frees you of the necessity to buy an annuity, and also allows you to make considerable tax savings. A QNUPS (qualifying non-UK pension scheme) is also an option, similar to a QROPS the QNUPS offers different bonuses to do with inheritance tax. Both QROPS and a QNUPS also offer significant advantages with regards to investment options and general flexibility.