Specialist expat financial advisor, Chase Buchanan, highlights common planning factors that may affect retirement outcomes for expatriates
— Chase Buchanan Private Wealth Management, the international wealth management firm, has cautioned existing and prospective expats about the real-world impacts of inadequate planning, noting that inflation and cross-border taxation are creating complexities for those underprepared for retirement.
Against a backdrop of rising living costs, tax reforms and evolving cross-border reporting obligations, expats have been advised that forecasting their long-term income is vital to a secure retirement.
Reasons Behind the Concerns Over the Retirement Preparedness of Overseas Expats
Based on its experience advising international clients, Chase Buchanan has identified several recurring issues that can make it more difficult for expats to plan confidently for retirement, including:
● Inaccurate budgets
● A lack of understanding of FX risks
● Retaining inefficient assets
● Failing to recognise how inflation can affect purchasing power
Some expats may, for example, overestimate how adequate their retirement savings will be in another country. Others might assume that financial strategies that have served them well will continue to do so, despite not accounting for inflation and currency fluctuations.
While professional expats working abroad may earn high salaries, this also doesn’t automatically translate into long-term financial security. Without structured planning, income increases can be offset by lifestyle inflation, according to the experts at Chase Buchanan.
Lee Eldridge, Group CEO and Head of Investment Advisory, comments that, ‘Retirement planning is about so much more than forecasting pension incomes and assuming these will be sufficient. The right approach incorporates considerations around currency movements, tax rules, and the jurisdictions where expats intend to retire.
Our goal is to help expats see why starting early, reviewing strategies regularly, and focusing on financial resilience is key to creating a retirement plan that will provide the lifestyle and quality of life they anticipate.’
Factors Contributing to Differences Between Retirement Expectations and Realities
Several factors often contribute to the difference between the retirements expats expect and how far their savings and pensions stretch, including:
● Delaying retirement planning, reducing the benefits of long-term growth and compound interest
● Losing track of pension arrangements held overseas or failing to review them
● Inflation gradually reducing the purchasing power of savings and retirement income
● Currency fluctuations affecting the value of assets held in different jurisdictions
● Cross-border tax obligations creating added complexity around retirement income and planning
Unlike individuals who intend to retire in their home country, expats need to consider a range of issues. Managing investments in different currencies, understanding local tax rules, and planning for future residency can all influence how stable retirement savings will be.
Eldridge advises that ‘Every expat’s circumstances are different, which is why a one-size-fits-all approach doesn’t work. Professional advice helps our clients understand the options available to them and build a retirement strategy that reflects their goals and where they choose to live and retire.’
Chase Buchanan has observed that the difference between expected and achievable retirement income can be particularly difficult to assess for expats because their planning may involve multiple tax systems, currencies, pension arrangements and reporting obligations.
The company recommends reviewing retirement plans to ensure they continue to reflect personal circumstances, economic conditions and relevant tax rules. Those concerned that their retirement income may fall short are encouraged to seek professional financial advice.
About the company: Chase Buchanan Private Wealth Management is a highly regulated wealth management company that specialises in providing global finance solutions for those with a global lifestyle. We are global financial advisers, supporting expatriates around the world from our regulated European headquarters, and local offices across Belgium, Canada, Canary Islands, Cyprus, France, Malta, Portugal, Spain, the UK and the USA.
Chase Buchanan Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission with CIF Licence 287/15 and offers its services in the EU on a cross-border basis as per the provisions of MiFID.
Chase Buchanan Insurance Services, Agents & Advisors is authorised and regulated by the Cyprus Insurance Companies Control Service with License No 6883 and offers services in the EU on a cross-border basis as per the provisions of the Insurance Distribution Directive (IDD).
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Name: Viktor Nyics
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Organization: Chase Buchanan Ltd
Website: https://chasebuchanan.com/
Release ID: 89207637
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