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Expats a Factor in Huge Pension Withdrawals

The high level of withdrawals highlights just how bold and innovative savers can be once they are granted the freedom and flexibility to do as they wish with their pensions rather than being saddled with the passive and sometimes disempowering pension rules of a few years ago.

Many are not simply withdrawing their money and spending it or indeed investing it in the stock market. Instead, they are choosing other methods of taking their pension, including expat pension transfers such as QROPS and SIPPs.

The figures are also further proof of the moribund state of final salary schemes; many savers are taking the option of receiving a lump sum payment in exchange for the cancellation of their final salary scheme. This is an arrangement that seems to be suiting both savers and the administrators of final salary schemes.

However, there are some concerns that the level of pension withdrawals could be a sign that some savers are making irresponsible or ill-informed decisions that could place their future financial security in jeopardy. As such, every saver should consider that the freedoms afforded by the pension reforms place an additional emphasis on the need for trusted professional advice when making decisions about how to transfer or invest pensions. Any desire to scrimp in this regard is likely to prove a false economy.

Good advice can help savers make solid plans and contingencies that align with their strategies, goals and projected timescales. This is hard enough for most investment professionals to achieve, let alone the lay investor.

Interestingly, the FCA figures reveal that close to 40% of the withdrawals were made by savers between the ages of 55 and 65, with the majority taken as a lump sum; it is clear that today’s savers are seeking to do things are on their own terms, but do so successfully good advice is critical.

Speak to Blacktower today for expat pension planning advice and information on the full gamut of wealth management and investing opportunities available to you as an expat.

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Expats join forces to publish paper

There has been unity among groups representing British expats living in EU nations – particularly Spain, Germany France, Belgium, and Italy – in an attempt to convince MPs to ensure expats have their rights sufficiently protected during Brexit.

The “Alternative White Paper”, published the same day the government released the Brexit White Paper setting out plans for leaving the EU, demands that expats’ rights be prioritised during exit agreement negotiations once Article 50 has been triggered.

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What are the best cities to move to in Spain?

Any expats looking to move abroad from the UK to Spain will obviously need to decide where to make their new home. Like many other popular Mediterranean countries, the majority of cities in Spain boast sun, fun, and fantastic culture, but if you’re looking for something particular, the following cities may be just the right […]

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