Your working life is complete, your children have fled the nest and you have money in the bank and time to travel. Sounds idyllic, doesn’t it? Retirement is filled with advantages – and one of the biggest is that you can move to a country where you don’t have to be dependent on your work, your location to big cities or your distance from local schools. The world is literally your playground. So if you’re thinking of becoming a retired expat, here are some good reasons to give it a go:
Improved quality of life
For many people, moving to a country where you can make your money go further with a lower cost of living makes great financial sense. The added advantage is that many of these countries offer wonderful climates and a high standard of living. So it’s not surprising that, according to the Telegraph newspaper in the UK, almost half of Britons with an income of more than £60,000 are planning to retire outside the UK where their pounds pack a punch – in countries like Spain, Malta and Portugal.
Why stay in a country where the climate negatively affects your health? One of the reasons you feel happier on holidays is as a result of the warmth and the sunshine. Vitamin D is being increasingly recognised as an important and very necessary vitamin in maintaining our overall health – and the best and most natural source of it, is the sun! Before you move, do your research and choose a retirement location based on your ideal overall climate – based on your lifestyle and your favourite hobbies.
Moving to a new country enables you to pursue new interests. Perhaps you’ve always wanted to learn to sail, or dance the Flamenco. Retirement is often the first time in your life where you can put yourself first. So if your current location is not offering you everything you want – plan your move abroad around your passions, hobbies and interests.
Retiring abroad can give you greater control over your personal wealth. Offshore accounts allow you to invest in currencies and opportunities you may not have exposure to locally. In addition, becoming non-resident for tax purposes through financial emigration can also open up a great many benefits including the transfer of the following assets abroad:
- The proceeds of your retirement annuity, even before the age of 55, which you may then use as you please
- South African source inheritance
- The proceeds of assets declared in your emigration application
- Passive income i.e. rent, dividends, director’s fees, salary for services rendered in South Africa and income from discretionary or vesting trusts
- Proceeds from a third party life policy
At FinGlobal we work with thousands of expats over 105 countries, many of these retirees, to ensure they are maximising their financial situation in their new country. If you’d like your money to go further in your golden years, contact FinGlobal today more information about transferring South African retirement savings, foreign exchange services and claiming tax refunds.