Offshore Pension Plans for Expatriates
deVere & Partners helps expatriates find and arrange offshore savings
and investment products for personal pension planning. We provide the information
clients need to judge for themselves which products are best suited to their requirements.
Suitable pension saving products
Offshore savings plans are widely used by expatriates to set aside money for retirement.
It makes no difference whether a plan is called a (pension plan) (retirement plan)
or (growth plan) they are all savings plans.
Therefore when choosing which plan to use the decision should be based on the plans
ability to meet your pension requirements and not on the plans name.
Benefits
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Tax efficiency
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Access to savings before retirement.
-
Ability to save for several objectives within one plan.
- Investment flexibility at retirement age.
Time is money
-
For every five years you put off saving you double the amount you must save to achieve
the same end result.
- Therefore £500 a month at age 30 turns into £1,000 at 35 and £2,000
at 40.
How much pension income will you need
-
If you have at least 15 years before you retire you will need to include inflation
in your calculations. Long term inflation continuously reduces the value of money
and can more than double the amount of annual income you need when you retire. £25,000
today can soon become £50,000.
-
To generate an annual income of £50,000 requires a pension fund of approximately
£800,000.
-
To create a pension fund of £800,000 requires monthly savings of approximately
£860 for 25 years.
- 25 years may sound like a long time but it's only 300 chances to do something
about your future.
Guide for regular pension saving
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Keep back enough cash for emergencies.
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Start as soon as possible.
-
Save at a level you can maintain until retirement.
- Increase savings in line with salary increases when possible.
Pension income
deVere & Partners also help expatriates find and arrange offshore products with
regular withdrawal facilities to provide a tax efficient income during retirement.
What to consider before choosing an investment
When choosing a suitable method of investment for your personal pension fund (money
set aside for retirement) you may want to consider how the following issues will
effect the investment and the income it provides.
1. Income
Will the investment allow you to take regular withdrawals at fixed intervals to
provide an income?
2. Adhoc withdrawals
Will the investment allow you to take adhoc withdrawals to pay for unexpected events?
3. Tax
Will the investment and withdrawals officially qualify for beneficial tax treatment
in your country of residence?
4. Risk
Will the investment allow you to create a portfolio with a level of investment risk
you find acceptable.
5. Flexibility
Will the investment allow you to make adjustments to your portfolio if you wish
to benefit from changes in the financial markets or protect yourself during market
difficulties?
6. Succession
How will the investment be affected if you die? i.e. who will get your money and
what will the tax liability be?
Insurance linked investment bonds
All of the above can be taken into account by using an insurance linked investment
bond. These products can provide tax efficiency and allow regular withdrawals to
be transferred automatically from the bond to a country and bank of your choosing.
Tax
The tax advantages for expatriates owning insurance bonds in retirement include
the tax free roll up of investment growth and in many countries reduced tax liability
on withdrawals.
Investment flexibility
Investors can choose from a wide range of offshore investment funds managed by some
of the world’s leading fund managers. Investors can split their investment between
different funds to create a portfolio of funds to match their preferred balance
of risk against reward and change funds.
You can download our latest
 Retirement Fact Sheet
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