Financial implications of retiring and working abroad:
Hopefully by now most of us are aware that governments all over the world are cutting back on retirement benefits and support they provide to their citizens.
Improvements in medicine are leading to greater life expectancy and governments and
companies are unable to afford to pay for longer retirement. The result is a ‘retirement age’
which is rising all over the world and the reality that many of us will have to work until we die.
For global nomads one of the key benefits is with planning, to have greater control of our
finances, allowing us to retire early. Instead of giving money to a government in the hope of
getting a pension, we can build our own.
Governments are expensive and cumbersome so the reality is that any money you provide to a government scheme will provide you with a poor return. This money is used to pay for
expensive government staff and also to pay out those who have already retired and also taxes.
As a global nomad or expat you have full control of your money and investments and every cent you save goes to providing for your benefit. How you structure your assets is also important for you and your potential beneficiaries and being a global nomad gives you the opportunity to not only reduce taxes for you but also later for any beneficiaries you may have.
Financial considerations can often become more complicated for those who have been divorced or have children through different relationships. Many of us now also marry a partner who is a different nationality to us. These situations can create issues with your financial plans if not discussed with an expert.
Like with most things getting organized and having a plan will give you control and greater
confidence that you are maximizing your opportunities as a global nomad or expat. The reality is that planning early will also help you to meet your financial goals faster and make the most of your life and retirement.