How much do I need in my pension?
A very good question indeed but especially so when you are an expatriate. A recent study(1) calculated that people would need on average a sum of 600,000 Pounds for their retirement.
In other words, for most people a substantial sum of money. Not so surprising when we are now living longer in retirement and we may have to cover 30 years plus of income. However, we have some good news!
Most people will be entitled to some form of state pension. This can be included in the total figure above. As can income from sources other than your pension pot. However, realistic pension planning is still very important to ensure that you have a reasonable quality of life in retirement. This is particularly true when you factor in the effect of inflation over such a long period as 20 or 30 years. Also, if you happen to retire at a period when interest rates are low it makes the requirement for a reasonable pension pot even greater.
As an expat you may well have additional requirements and expenditure. The cost of medical insurance, the trips home, changes in exchange rates may all affect your comfortable retirement. (See Financial Planning for Expats - Why it is different?)
Pension planning will depend on your circumstances. Factors will include how long you have worked, whether you are in a final salary scheme, whether that scheme is in deficit, if you have a QROPS, if you are in a personal pension, SIPP or SSAS scheme how the money is invested, what other assets you have, your current liabilities and much more.
This may seem a lot of variables to take into account. The best approach is to discuss your own, personal circumstances with an independent financial adviser who understands the particular requirements of being an expatriate and who is experienced and familar with the process of helping people build their total assets for retirement. In other words, one who has the experience to be able to answer the question, How much do I need in my pension?
If you would like to discuss your situation, without obligation, please email Pension Planning for Expats
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1) Source. MGM Advantage