As life expectancy continues to rise, retirement planning is no longer just about reaching a specific age—it’s about ensuring your wealth can sustain the lifestyle you want, for as long as you need it.
Whether you’ve already retired or are approaching retirement abroad, careful planning around pensions, savings, investments and taxation can help protect your financial security and allow you to enjoy your time with confidence.
Here are five essential questions to ask yourself as you plan for the future.
1. How much income will you need?
Retirement income needs vary from person to person—but it’s vital to plan for more than just your monthly expenses. You’ll need to factor in:
- Everyday costs of living in your country of residence
- Potential healthcare and later-life care needs
- Unexpected repairs or home improvements
- Holidays, hobbies, or family events
Inflation also plays a significant role. For example, if you currently spend €5,000 per month, a modest 3% annual inflation rate could increase that figure to over €6,700 per month within 10 years, and more than €9,000 after 20 years.
📌 Action: Work with an adviser to create a realistic, inflation-adjusted forecast of your retirement spending.
2. How much do you want to leave behind?
For many individuals, leaving a financial legacy is just as important as enjoying their retirement years. But achieving both goals requires balancing your own needs with those of your heirs.
Estate planning shouldn’t be treated as separate from retirement or tax planning. An integrated approach can help ensure:
- Your wealth is distributed according to your wishes
- Unnecessary tax exposure is avoided
- Your assets are efficiently transferred to your beneficiaries
📌 Action: Review your estate plans to ensure they’re aligned with your retirement goals, and compliant with the rules of your country of residence.
3. How can you get the most from your pensions?
Your pension is likely your most valuable financial asset in retirement. If you’re living abroad or considering a move, you’ll want to explore how local and UK tax rules apply to:
- UK-based pensions (e.g. SIPPs or final salary schemes)
- Overseas pension transfer options like QROPS
- Death benefit and inheritance tax implications from April 2027, when pensions will be included in UK inheritance tax calculations
While QROPS may offer advantages in certain cases, recent rules impose a 25% overseas transfer charge unless both you and the pension are based in the same jurisdiction. Some countries also tax lump-sum transfers as income.
Importantly, doing nothing may also be the best course of action—particularly if you hold a defined benefit (final salary) pension, which guarantees a lifetime income.
📌 Action: Take regulated, personalised advice before making any changes to your pension. Every option has long-term tax and financial implications.
4. How can you make your savings and investments last?
Review whether your current assets are:
- Tax-efficient in your country of residence
- Structured for long-term income and capital growth
- Protected against exchange rate volatility
Expatriates often retain UK bank accounts or investments that may be taxed less favourably abroad—or may even lose access to services due to post-Brexit regulations.
If you’re spending in euros but holding assets in pounds, this exposes you to currency risk and conversion costs. Flexible, multi-currency structures—such as a compliant life assurance bond—can offer diversification, efficiency, and smoother income drawdowns.
Also, while it’s natural to reduce investment risk as you age, be cautious: cash rarely keeps pace with inflation. A well-diversified investment strategy can help ensure your capital continues to work for you throughout retirement.
📌 Action: Review your asset allocation, tax efficiency, and currency exposure with a qualified adviser.
5. How can you limit the effect of taxation?
With longer life expectancy comes higher public costs—often resulting in governments raising taxes to fund pensions, care, and services.
As a retiree abroad, you may face dual tax exposure, particularly if you still have UK-based income, pensions, or property.
Certain locally-compliant investment structures can significantly reduce your tax liability, making your income stretch further. These may also offer tax-efficient ways to pass on assets to your heirs.
But effective planning requires local expertise—what works in the UK may not work (or be allowed) in Portugal, Spain, France, Malta, Cyprus, or other jurisdictions.
📌 Action: Take advice from a cross-border specialist who understands both your home and host country tax systems.
Final Thought: Plan Today for Peace of Mind Tomorrow
Living longer brings many benefits—but also financial challenges. The good news is that, with a clear plan and tailored advice, you can protect your income, minimise tax, and ensure your money lasts throughout your retirement.
Wherever you are in your retirement journey, a review of your financial strategy can help give you peace of mind and greater control over your future.
📞 Ready to review your retirement plan?
Speak to Blacktower’s experienced advisers for personalised guidance on pensions, investments, and estate planning. We’ve been helping expatriates across Europe plan their financial future for many years.
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.
Since the Pensions Freedom Act came into force in the UK, in April 2015, there has been a huge outflow of money from defined benefit pension schemes and personal pensions in the UK. Many people have taken advantage of the new flexibilities by having control of their own pension pots.