Moving Abroad: Pension and Money Talk

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More and more people seem to be moving abroad by the year. Does this appeal to you? Could you see yourself embarking on a new adventure in another country? Whilst this is not for everybody, it is definitely something you should consider.

What are the benefits of living and working overseas?

·      More money – This obviously depends on where you live now and where you are moving, but you could save money. Nevertheless, one of the main reasons why people move to another country is to increase their level of income.

·      A better way of life – This can equate to a number of different things. Perhaps you would prefer to spend your days in a place boasting plenty of sunshine? Maybe you want to move to a safer country? In terms of working you must also consider that some countries are a lot more lenient in the sense that workplaces shut down completely on the weekends and during the holiday periods. You may even benefit from daily siestas.

·      Benefits your children – Kids who move abroad are often a lot more confident as they have experienced more from a young age. Moreover, they will experience a completely new culture and have the chance to pick up another language as well. This will stand them in good stead for the rest of their life.

·      Networking and improving your CV – By moving abroad you will have the opportunity to better yourself significantly in professional terms. Networking opportunities will double and you will improve your CV by having another place of employment on there. This can be used as a stepping-stone to advance your career.

·      A new experience – Life is all about experiences. As cliché as it may be, you only get one life and you need to live it. This is one of the main reasons why people live abroad. They want to see and experience as much of the world as possible, and who can blame them?

Nevertheless, moving abroad is not as easy as merely packing your cases and leaving. There are various things you need to take into account. Your finances are undoubtedly paramount. You need to look into what the best UK pension transfer is for moving to another country.

If you are a British National planning to work abroad, generally you have two main options, these are a QROPS and a SIPP. The former stands for Qualifying Recognised Overseas Pension Scheme, whilst SIPP stands for Self-invested Personal Pension. It can be difficult to select between the two and this is why it is recommended that you seek professional assistance. Companies like Philips Trust can help with ensuring all your financial orders, including trusts and probates, are settled before moving.

SIPPs are generally cheaper than a Qualifying Recognised Overseas Pension Scheme, yet this is because the latter offers benefits an SIPP cannot. This includes the likes of not being subject to IHT on the death of the member post retirement, income being paid in gross and increased flexibility in taking a tax-free lump sum. Nonetheless, there is no right or wrong when it comes to selecting what one is right for you, it all depends on your situation. This is why professional assistance is strongly advised. 

This is just one of the many financial matters that need to be considered when moving to another country. You also need to consider your banking requirements too. Opening an account in the country you are moving too is vital too. The sooner you do so, the better. You will be able to handle all matters in this country from this account, even prior to your move. This includes all property transactions. This will save you money in terms of currency conversions and such like. 

You will also need to ensure you wrap up all of your finances in your current country. In the UK, you will need to inform the HMRC that you are moving. This is critical for your tax implications. You also need to inform your bank. Do prepared for your account to change. For example, if you have an overdraft, this may be taken away from you upon moving.

All things considered, you need to plan your finances carefully if moving overseas.

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