Pensioners looking to move abroad
Tuesday, 14 Aug 2007 10:27
Pensioners looking to move abroad
Pensioners looking to move abroad have voted New Zealand as their destination of choice.
Research released by the Royal Bank of Scotland International suggests up to one third of pensioners (31 per cent) have considered moving abroad, with 11 per cent choosing New Zealand as their preferred destination.
Australia, with seven per cent, and Canada, six per cent, completed the top three desired locations.
As many as one million pensioners already draw their pension abroad according to the Department for Work and Pensions. 245,000 receive their pension in Australia, some 157,000 in Canada and a further 132,000 in the USA.
Furthermore, the Institute for Public Policy Research has predicted an extra 3.5 million pensioners could be living abroad by 2050.
The process, however, can be fraught if not planned correctly.
"When retiring abroad it is important to have looked into your pension arrangements and to have adequate financial planning in place," warned Tony Wilcox, managing director of Bank of Scotland International.
The group gave the following advice:
Ensure you have an account which allows you to receive your pension while simultaneously facilitating international banking.
Contact the Departments for Work and Pensions, National Insurance Contributions Office and Social Security Office to they continue to pay your pension while you are abroad.
Examine the currency risks of living abroad while drawing your pension in Pounds Sterling.
Research your tax status in your chosen destination and consider how much you will pay in tax.