The chances are that regardless of who you are speaking with about your pension plans, they will all tell you that it boils down to planning for retirement as early as possible – there is no such thing as too early!  You may feel hard-pressed to find other statements that are as truthful or concise on this topic, so this article will discuss the significance of pension plans early in life. 

Starting to play early literally pays off in later life!

If you remember to begin early for your retirement, the greater your chances of spending later years with a certain level of comfort that you desire and will rightfully deserve.  The majority of people may shrug off the issue stating that they do not see the urgency in retirement plans; perhaps they are relying on the national pension in their home country’s social security programs or maybe they are involved with company pension plan programs.  While this can work out for individuals who spend their lives paying into a social security system, retirement years are not always comfortable and many expatriates will often need to take the situation into their own hands.

While you may be in luck if you do not move from one country to another often, the “serial experts” should not waste any time in thinking about how they wish to fund their retirement.  This is based on various reasons connected to today’s growing international lifestyles.  It is important to take these considerations into account:

Your home country may not have any social security agreements in place with the countries where you work; thereby, making it difficult to transfer or access all contributions you have made across the globe.

You may not be able to use tax benefits for retirement provisions available in your country of origin, and you might need to pay large bank transfer fees to access your funds.

The company retirement plan may not be transferable to different countries or premiums may not be payable in certain currencies.  This means that you could lose money based on poor currency exchange rates.

In addition to all the points above, you should also take into account the different practical concerns when considering your particular retirement provisions.  For instance, managing the bureaucratic aspect of a retirement provision can be complicated if you are performing the task from a foreign country and require changes, such as needing personal details to be altered. Here is a good site to transfer UK pensions to the US.

However, if the documents are dealt with correctly, a pension provision may enable you to enter retirement early.  Many expatriates have received sufficient remuneration for the work in a foreign country, and opting to save or invest the disposable income can be a good pay-off in the long-term.

What About International Pension And Savings Plans?

Fortunately, the special circumstances recognized by large companies sending employees across the globe as mobile expats have prompted the employers to offer staff a type of international pension plans.  Due to the fact that there is no “one size fits all” retirement planning solution, especially for expatriates, the range of provision solutions available is a formidable one; however, the method used to execute the majority of international pension plans are similar in style.

What happens is the bank or insurance provider invests the individual’s contributions and the employer’s contributions into specific funds to vary the risk, which are almost always voluntary and payable in different currencies.  As a pension plan holder, you will receive the option of investment possibilities from which you can choose a solution based on your preferences.  The advantages are clear as this can result in respectable long-term returns; however, it will also provide your provisions vulnerable to market fluctuations.  This is why it is essential that you discuss any international pension provisions with your employer in detail before agreeing to the plan.

If your employer does not provide an international pension plan, or if you are an entrepreneur, freelancer or contractor, then it is best to approach the retirement provisions issue independently.  This article provides some useful tips on what to look for as part of international savings and retirement planning; as well as the various advantages or risks of the most popular alternative – the international savings plan.

Always remember that both of the above-mentioned options provide different means of accessing savings.  The majority of savings plans or international pension programs are not developed to pay out until retirement, but for a predetermined period.  Of course, there are situations where a person can have a lump sum of the savings paid out or one could choose to receive an annuity.  Before settling on a specific offer, it is recommended that you ask about this significant detail!

What Are The Other Popular Pension Provisions Available?

There are numerous means for expats to take care of their pension provisions.  In the article on this subject, we discuss the advantages of life insurance and how this is one of the more popular pension provisions options.  Another highly popular alternative is the use of real estate, regardless of whether it is in your home country, a country you have lived in as an expat or a country you plan to retire in.  Real estate does, however, present with inherent risk and the option to purchase property that one will not retire in, but to sell for a profit, should always be discussed with a real estate professional.

What Questions Should Be Considered When Choosing Your Retirement Location?

While your provisions are not the end of one’s pension plans, sooner or later you will need to choose where to retire.  The majority of expatriates choose a country they enjoy living in or a country where there is delicious food with constant good weather – preferably both!  While the choice is personal, it is recommended that you keep certain factors in mind when deciding.  In this way, you will make an informed decision and will not lose a part of your savings needlessly.  Always consider:

– the possible additional taxes in the country that are not calculated in the original plan, such as wealth tax.

– how you will handle issues such as medical bills and health care.

–  how the country manages wills and inheritance laws.

– if you are eligible to receive compensation when you have not made contributions to the country’s social security system.