Goodbye grey skies and drizzle โ hello sunshine, relaxed living, and maybe even a villa by the sea. For many people, the dream of retiring abroad is more appealing than ever. But while the lifestyle may look idyllic, the financial planning behind it needs careful thought.
At Continuum, we can help you make theย appropriate financial decisions here in the UK โ to give you the freedom to shape the retirement you really want.
The dream of retiring overseas
Whether you're drawn to the charm of France or Spain, or somewhere more adventurous, thereโs no shortage of UK retirees seeking warmer, more affordable places to enjoy their later years. For some, itโs an escape. For others, itโs the reward for decades of hard work.
But making the move โ or even simply preparing for the option โ involves more than just packing a suitcase. It calls for a well-structured retirement plan built around your goals, income needs and long-term financial security.
Your UK pensions
Your private pensions remain in the UK even if you retire abroad. Once you reach pension age โ currently 55 (rising to 57 from April 2028) โ you can usually access your savings regardless of where you live. However, not all providers can pay into an overseas account, and exchange rates could impact your income.
In some cases, individuals explore transferring pension funds overseas โ but this carries complexity, tax implications and regulatory risks. Since we do not offer overseas advice, our role is to help you make informed decisions here in the UK, protecting your interests and aiming to ensure you remain on track for the retirement you want.
Your UK State Pension
You can claim your UK State Pension from abroad, provided youโve made enough National Insurance contributions. However, the annual increases from the triple lock donโt apply everywhere. In some countries, your State Pension will rise each year as it does in the UK โ but in others, it will remain frozen.
This could have a big impact on your retirement income over time, so itโs vital to understand how your plans could be affected.
Understanding tax
Tax rules differ between countries, and if you draw a UK pension while living abroad, you may still pay UK income tax โ and potentially tax in your new country too. The UK has agreements with some nations to prevent double taxation, but these vary. We can help ensure your UK-based plans are structured as efficiently as possible.
Helping you prepare โ from the UK
At Continuum, we donโt provide advice on overseas financial products or laws โ but we can help you prepare your UK finances to give you choice, flexibility, and control.
Whether you're firmly planning a retirement abroad or simply want to keep the option open, we can support you with:
- Retirement income planning
- UK pension options
- Tax-efficient investment strategies
- Estate planning considerations
Start your journey with confidence
Planning for retirement โ wherever it may take you โ begins with making the most suitable financial decisions now. Our team will work with you to build a retirement plan that supports your goals and adapts as life changes.
Letโs talk about the future you want. Contact us at Continuum today.
Long-term international migration, provisional - Office for National Statistics
Everything expats need to know about claiming a UK pension abroad
The information contained in this article is based on the opinion of Continuum and does not constitute financial advice or a recommendation to any retirement strategy you should seek independent financial advice before embarking on any course of action.
The Financial Conduct Authority does not regulate taxation and trust advice or will writing.
The value of an investment can go down as well as up and you may get back less than you invested. When investing Capital is at risk
A pension is a long-term investment; the fund value can go down as well as up and this can impact the level of pension benefits available. Pension Income could also be affected by interest rates at the time benefits areย taken. Pension savings are at risk of being eroded by inflation.
Accessing pension benefits early may impact on levels of retirement income and your entitlement to certain means tested benefits.
Levels and basis of reliefs from taxation are subject to change and their value depends upon your personal circumstances. We recommend that the investor seeks professional advice on personal taxation matters.
