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Expats should consider short-term appeal of regular savings, says report

Of course, this does not mean that those looking to save for their retirement should automatically look to put their cash into savings; it simply means that those looking for a low-risk strategy could do worse – Lewis’s study found that unlike shares, savings always produce profitable returns.

“People who prefer the safety of cash can make returns that beat those on tracker funds,” said Lewis. “Over the longer-term shares are likely to do better but I wanted to find out when the boundary is. My research shows that it’s only at about 18 years that the balance turns in favour of shares over cash.”

Lewis’s data showed savings accounts outperforming shares in the majority of five-year periods beginning each month from 1 January 1995 to the present. However over the course of 21 years the tracker yielded a compound annual return of 6%, superior by one percentage point to that produced by best buy savings accounts.

It should be noted, however, that in order to achieve the best possible returns on regular savings, expats need to become what Lewis terms “active savers”. This means that every year they need to move their savings between ‘best-buy’ accounts.

What Lewis’s study certainly underlines is the importance of good expat financial advice. There are so many variables applying to both people and the products they choose that good guidance is imperative.

This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.

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Consolidate your Irish pension

Sunset over rocks on a beachOne of the best pieces of semi-financial advice I ever received was about buying clothes: buy good quality (obviously) and then have the garment altered to fit me specifically; sound financial and sartorial sense. Of course, this means going a little further than one might normally when buying a new outfit, but it’s a little extra that I think is more than justified in the end. Ready-to-wear clothes are great without doubt, but having something that fits you perfectly gives a continued feeling of satisfaction with every wear, it’s so worth it. There are parallels to be made in my professional life as well; it’s such a pleasure to be able to offer clients advice and products that are tailormade to their requirements and fit their circumstances perfectly.

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Expats a Factor in Huge Pension Withdrawals

Pile of CoinsExpat pension needs are one of the major reasons behind the £15.3 billion the Financial Conduct Authority (FCA) say was was taken from pensions during 2016/17.

The high level of withdrawals is no doubt attributable to the increased flexibility afforded UK pension savers by the introduction of landmark reforms over the past few years.

The £15.3 billion figure was disclosed following a Freedom Of Information request to the Financial Conduct Authority (FCA) and is a massive 173% increase on the £5.6bn that was withdrawn in 2012/13.

In fact, the second quarter of 2017 saw the highest quarterly level of pension withdrawals in five years – no doubt including many expat pensions withdrawals – with more than 40,000 people withdrawing £4.3bn from their pensions.

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