News & Insights

Although having solid expat regular savings is important no matter what the financial climate, it is good to see that recent efforts by campaigners to end the freeze on state pensions currently endured by more than half a million retired expats abroad may be gaining momentum.

As it stands around 550,000 retired Brits abroad have to rely on their expat regular savings to top up a state pension which was frozen at £67.50 a week; nearly a full £40 less than the sum received by other pensioners.

The unfairness of their situation is compounded by the fact that the Government has struck individual deals with certain nations ensuring the full, unfrozen pension, but has left the expat residents of another 150 countries stuck with the year 2000-level pension.

That is the question concerning many expatriates at the moment. What a difference a few days can make to the whole issue, before Cameron went to the EU to try to negotiate with a group of people that dislike anything that could disrupt the status quo or threaten their position (no matter how valid the argument), it looked like the in vote had the upper hand. 

Since returning and announcing the referendum on 23rd June, people he once considered good friends, allies and colleagues who he could count on for support have decided to join the out camp and now this is gaining momentum.

The Dividend Aristocrats are S&P 500 constituents that have increased their dividend payouts for 25 consecutive years.

The FTSE also has its own Aristocrats which many people who read this article will recognise and even have in their own portfolios, some of the dividend returns can make very interesting reading:

There is a lot of fear and scaremongering about the prospect of having Donald Trump positioned as the leader of the world’s biggest superpower.  A lot has been written about the economic disaster that would inevitably prevail but I am not so sure. The last time a Republican high profile public figure took the post with Ronald Reagan Hollywood superstar becoming President, many sceptics would have had similar fears.  

For many, the stresses and demands of work often leaves little time to consider your personal affairs and it is easy to put things on the back burner. International jobs whilst often paying “top dollar” can be transient in the regard that you may be in Paris this year and New York the next. Compound this with changes of employers and local pension regimes (if there is one) and one can quickly find that retirement provision is fragmented and very soon not in line with current earnings or expectations for your exit from business and eventual retirement.

A survey by Old Mutual Wealth has found that 38% of international financial asset management professionals would like a review of the new QROPS pension transfer scheme rules. Only 20% said they were happy with the new rules, while 40% described themselves as “unsure”.

As part of rules introduced in April 2015 those undertaking QROPS pension transfers should receive independent and impartial advice from a professional appropriately authorised by the UK Financial Conduct Authority.

As an IFA I have become very sensitive to market reactions and I have always had an interest in current affairs, but at this time even I am getting bogged down by this endless supply of bad news.

The recent drops in the stock markets are simply down to confidence and not of the same making of the crisis eight years ago.

I still struggle to see why a barrel of oil at $27 dollars compared to the $108 of eighteen months ago is anything other than good news. After all, there are more consumers of oil than producers. Motorists felt the positive effect immediately and users of oil in industry such as manufacturing plants or airlines should post better than expected quarterly profits, which may help dividend levels. In many cases this is yet to be rolled out.