Overseas relocations remain significant, with the Office for National Statistics estimating that around 246,000 British nationals left the UK on a long-term basis in the year ending December 2025.
While expats often recognise the importance of finding a home, setting up a bank account and understanding how their pension will be affected, many might overlook other essential financial management tasks that should ideally be considered before a move takes place.
Chase Buchanan Private Wealth Management, a financial advisory firm that works with expats from its locations around the world, explains some of the most important ways in which professional wealth management and retirement planning guidance can help expats retiring abroad prepare for a sustainable and financially stable life in their chosen destination.
1. Why Pension Arrangements May Need to Be Revisited Before Retiring Overseas
Lee Eldridge, Group CEO and Head of Investment Advisory at Chase Buchanan, explains that ‘An international move gives rise to several financial decisions, not least for expats who are retiring and whose pensions, retirement assets and investments might be categorised and treated differently in another country.
There may be several potential approaches, but it is important not to assume that existing pension projections, tax treatment or product suitability will remain unchanged following an international move.
Depending on their circumstances, individuals may consider retaining existing UK pensions, reviewing whether a different UK pension arrangement is appropriate, or assessing whether an overseas pension transfer could be suitable.
Transfers to a Qualifying Recognised Overseas Pension Scheme (QROPS) are subject to specific eligibility and tax rules, and an overseas transfer charge can apply in some circumstances.
Not all expats decide that restructuring their pension wealth is necessary, but the right answer will depend on factors like their intended destination, the types of pension accounts they hold, whether they expect to become overseas tax residents, and how well projected pension income matches their expectations.
The key is to review pensions and other retirement funds with a financial professional, ensuring forecasts are accurate and up to date, pension plans take account of tax obligations, and that any gaps in pension accessibility or values are addressed.
2. How Expat Retirees Can Help Manage Currency Risks
The purchasing power of cash, savings, assets, pensions and investments can change when an expat relocates, especially if their retirement income is received in a different currency than their everyday expenses.
Potential scenarios could mean a retiree is receiving a UK pension in GBP, covering living costs in EUR, receiving investment returns in multiple denominations, or has property assets in different countries.
Financial planning can take account of currency exposure when considering future income, expenditure, significant transfers and the currencies in which investments and assets are held.
3. The Importance of Budgeting for the Costs of Retiring Overseas
Typically, a retiree moving abroad will have a reasonable idea of the living costs and affordability in their intended new home, but it is easy to overlook potential expenses that could create the difference between a comfortable lifestyle and finding that retirement income doesn’t stretch as far as expected.
There is also the potential for costs and income to fluctuate, including due to the currency risks mentioned, which can mean income falls or expenses rise unexpectedly.
A financial adviser can help retirees build a realistic picture of their future financial position by considering both expected and unexpected expenditure alongside their projected pension and investment income.
That might include budgeting for healthcare, insurance, accommodation, travel and other regular costs, while considering how these might change over time.
It’s also important for retirees to consider how financial priorities might change, as building some flexibility into their plans may help reduce the risk of unanticipated costs putting pressure on their income and available assets.
4. Why Expats Should Understand Tax and Succession Implications Before Moving
Tax is, of course, an important consideration for anyone planning to retire overseas, but trying to navigate international tax law alone is rarely straightforward. Moving abroad can change how pensions, investments and assets are treated, and some retirees may find they have reporting obligations in more than one country.
In addition, a change in tax residence can affect how different sources of retirement income are taxed and reported.
Rules governing inheritance, estate taxes and how individuals are able to distribute their assets can differ considerably between countries, and each person’s position might be affected by where they live, where their assets are, and where their family members are based.
Decisions about where to hold investments, how to structure pension wealth and whether to retain assets in the UK may therefore have consequences not only for retirement income, but also for how wealth is eventually passed to beneficiaries.
A wealth management adviser can help identify areas that may need consideration, while recommending where specialist tax or legal advice may be required.
5. Creating an Adaptable Retirement Strategy
Regular financial reviews can help identify when a retirement strategy may need to change. For example, a significant movement in exchange rates could alter the purchasing power of overseas retirement income, while changes to investment performance or personal circumstances could affect how much an individual needs to draw from their assets.
Eldridge adds that, ‘Retirement planning isn’t just about establishing how much income will be available. It also means looking at how a retiree’s circumstances might change, and creating a stable financial plan that has some flexibility built in.
Expats creating retirement plans often need the assurance that their finances and assets will continue to be sufficient for the years to come, accounting for the possibility of changes to financial markets, personal circumstances and their priorities.’
When Professional Wealth Management Advice May Be Important for Expat Retirees
Retiring abroad can be an opportunity to enjoy a different lifestyle and make the most of a long-planned chapter, but moving to another country can also require financial decisions that may not arise when remaining in the UK.
Taking a wider view before relocating can help expats identify potential challenges and understand where their existing financial arrangements may need to be reviewed. And, with the right planning, retirees can build a strategy that is designed not just for the move itself, but for the years of retirement that follow.
About Chase Buchanan Private Wealth Management
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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