Organising the essentials of an overseas expat retirement

Retiring overseas is a dream for many older people in the Western world, with the draw of warmer, sunnier weather, time to relax and enjoy life and a cheaper cost of living the major items on the wants list.

The decision as to where to settle is the first and, for many, the hardest choice, simply because there are so many destinations to choose from and no guarantees that a delightful holiday experience will resemble life as an expat. In addition, long-stay visa requirements in some countries depend on financial resources above and beyond state pension rates. Also, a few countries only let in those with family connections as well as requiring a deposit of considerable amounts of cash to be left in a local bank. Others require a monthly income of many times the average wage for locals.

Even if Europe isn’t on your favourite locations list, Brexit will have an effect on your finances due to fluctuating exchange rates, thus forcing you to recalculate your budget strategy, although adjusting your expectations or downsizing doesn’t sound much like a dream retirement. Whether you’re planning to rent or buy a new home, your first priority is accommodation, making researching your favourite destinations'’ property prices, costs of living and average rental charges essential. You’ll also need to decide whether to sell your present home or rent it out to make budgeting for your new life easier.

In general, your pensions should not be affected after you make your hopefully permanent move overseas. Most countries’ authorities are able to pay state pensions into foreign bank accounts, but UK retirees should check whether the state pension will be frozen at the point of departure. As regards personal or work-related pensions, these are able to be transferred to an overseas equivalent, but care must be taken when choosing the right financial advisor as overseas expatriate hubs are crawling with ruthless examples of this justifiably much-maligned trade.