We offer a full financial planning service for all expatriates.
For more information on our services please click on the relevant link below.
Retirement planning is an important element of your wealth management and financial planning strategy. After you’ve spent your life working hard to provide for yourself and your family, you deserve to look forward to a happy retirement where you can relax and enjoy the fruits of your life’s labour. Pension and retirement planning can be a huge worry for those who feel that they may have left investing for their old age too late. By seeking advice from a professional financial advisor, you can help to reduce the worry and start making plans for your retirement.
This advice would typically involve:
- Providing a FREE and no obligation initial assessment of exactly where you are today
- Helping you to determine the lifestyle that you desire in the future and when that is to be
- Establishing a strategy, to help you to achieve your desired objectives
We would write to all of your UK pension providers on your behalf, to exactly quantify your existing benefits. We would then provide an analysis of all these schemes, together with advice on transferring them to an offshore QROPS arrangement if appropriate. Should these plans fall short of your stated requirements, we can then advise on suitable savings strategies to maximize your eventual retirement income.
The fear factor of pensions is a very real issue for people who realise, as they reach middle age, that retirement is fast approaching. Some of the concerns these people face and the issues they need to address include:
- How much money do you need for retirement? People are living much longer and are surviving well in to their nineties or beyond.
- How do you ensure that there is an ongoing income when a partner dies? This is often a concern for women, as they are more likely to live longer than men.
- How will inflation and currency fluctuations affect a fixed income?
- What about care costs for you or your partner?
On top of these common fears, many people who thought they had made a provision through an employer’s pension scheme realise the scheme is running on empty as they fight a losing battle to meet their ever increasing liabilities.
When it comes to pensions and retirement planning, the options are simple – you can either take responsibility for funding your own retirement and treat any state provision and inheritance as a bonus, or sit back and hope for the best
Remember… the financial decisions you take today, will determine the quality of life you will have in the future.
“I believe that the biggest mistake that most people make when it comes to their retirement is they do not plan for it. They take the same route as Alice in the story from “Alice in Wonderland,” in which the cat tells Alice that surely she will get somewhere as long as she walks long enough. It may not be exactly where you wanted to get to, but you certainly get somewhere.” Mark Singer – The Changing Landscape of Retirement
“No man in the country is under the smallest obligation, moral or other, so to arrange his legal relations to his business or property as to enable the Inland Revenue to put the largest possible shovel in his stores. The Inland Revenue is not slow, and quite rightly, to take every advantage which is open to it under the Taxing Statutes for the purposes of depleting the taxpayer’s pocket. And the taxpayer is in like manner entitled to be astute to prevent, so far as he honestly can, the depletion of his means by the Inland Revenue” Lord Clyde – Ayrshire Pullman Motor Services v Inland Revenue (1929)
SAVINGS AND INVESTMENTS
“It’s not how much money you make, but how much money you keep, how hard it works for you, and how many generations you keep it for.” – Robert Kiyosaki
Once we lose our ability to earn new money and ignoring for a minute an unexpected windfall or family inheritance, then whatever we end up with at retirement is pretty much cast in stone. It is imperative, therefore, that the money you have worked so hard for, is working hard for you in return. Too many people simply roll through their lives, meeting any cash requirement head on at the time it arises. In some ways, this is a form of ‘crisis management’ invariably coming at a time when it is least welcome.
We will help our clients to plan for such eventualities, by giving careful consideration to their specific requirements for capital and/or income in the short, medium and longer term. Clients will have different investment objectives depending on whether they are looking to grow capital, preserve capital or produce income. We will ensure that you are aware of the different investment opportunities available to you. These will include:
- Bank deposits and money market funds
- Guaranteed Investments
- Fixed Income
- Investment funds
- Discretionary portfolio management services
- Alternative investments
- Private Equity
Many people use their bank account to build their savings, but with interest rates so low at present, once you take inflation and rising living costs into account, it is often the case that these savings are standing still at best. With this in mind, the most effective wealth management solution is to use your lump sum of money and invest it intelligently. Lump sum or Offshore Investments mean that instead of being inactive, your money has the chance to build and grow – giving your personal finances a welcome boost.
Offshore investing was once the preserve of the world’s wealthiest individuals, offering financial rewards to a handful of private and corporate investors. The benefits of offshore are vast and its scope for wealth creation and preservation are almost limitless.
The structures recommended by Asia Pacific Pensions are based in jurisdictions which are recognised by the OECD as being tax compliant yet will provide growth free of capital gains, income and withholding taxes. Within these structures, through our open architecture approach, clients will be able to take advantage of access to all asset classes and all fund management groups at a low transparent cost. We offer all of our clients a full range of Professionally Managed Investment Solutions in this way.
No one plans to fail, they simply fail to plan
“I believe that the biggest mistake that most people make when it comes to their retirement is they do not plan for it. They take the same route as Alice in the story from “Alice in Wonderland,” in which the cat tells Alice that surely she will get somewhere as long as she walks long enough. It may not be exactly where you wanted to get to, but you certainly get somewhere.” Mark Singer – The Changing Landscape of Retirement”
Financial Planning covers many different areas, most of which provide the opportunity to mitigate any unnecessary taxation for our clients. Many expatriates who decide to ‘live the dream’ and retire to a warm tropical country, tend to then forget about their UK tax status. With legislation on such matters changing so frequently, they would be well advised to keep abreast of such changes just in case they ever decide to return to live in the UK. Leaving the country correctly is, therefore, essential in ensuring that you do then not fall foul of the ever expanding HMRC tax net.
The process can be relatively straightforward and could well include some or all of the following:
- Completing the correct ‘Leaving the UK’ tax declaration
- Obtaining any possible tax rebates in the year of leaving
- Registering as a non-resident landlord, to receive gross rental income on any UK properties
- Opening an offshore bank account
- Transferring any relevant UK pensions into an offshore QROPS arrangement
With the recent overhaul of the UK’s rules on domicile and residence, we would also need to look at your ‘social ties’ to ensure that you are not still treated as UK resident on your worldwide income and assets…DESPITE moving to an overseas location. This could involve detailed analysis and advice on:
- Ensuring any future earned or pension income is NOT subject to UK income taxation
- Arranging your estate to ensure your assets are passed on without any UK Inheritance Tax, to the beneficiaries of your choice
- Tax efficient income provision for beneficiaries, without the need for probate
- Advice on making a will in your country of domicile and creation of trusts where appropriate
- Maximising the returns generated on any other investments / cash deposits, through the careful use of offshore investment structures
For expats and international workers who are living outside of the UK, getting professional advice on inheritance tax planning from a qualified financial adviser is even more vital – these already intricate inheritance rules can be further complicated due to the fact that the tax laws of more than one jurisdiction may need to be considered.
Even a British citizen who has spent most of their adult years outside the UK, could still be liable to pay UK inheritance tax. Probably the most famous case of this sort involved the actor Richard Burton. Although he lived in the US for 27 years, because his body was buried in Wales, the Inland Revenue deemed him still residing in the UK and took £2.4m in inheritance tax (IHT).
Everyone gets organized at some point, they just might not be around for it