{"id":63,"date":"2018-05-22T05:31:27","date_gmt":"2018-05-22T05:31:27","guid":{"rendered":"https:\/\/adamfayed.com\/?p=63"},"modified":"2024-05-24T06:34:09","modified_gmt":"2024-05-24T06:34:09","slug":"financialplanningandpensionsforexpatteachers","status":"publish","type":"post","link":"https:\/\/adamfayed.com\/it\/financial-planning\/financialplanningandpensionsforexpatteachers\/","title":{"rendered":"Financial Planning and Pensions for Expat Teachers"},"content":{"rendered":"

Effective financial planning and pensions are crucial for expat teachers, with offshore pension bonds<\/a> offering significant benefits.

Last time I spoke about the needs of oil and gas workers.\u00a0 <\/span>Teachers overseas are in a similar position in some ways but in a different situation in other words.\u00a0 <\/span>The following points were made about oil workers but also applies to education:<\/p>\n\n\n\n

1.  <\/span>Assicurazione sanitaria <\/span><\/strong><\/p>\n\n\n\n

Your employer should provide this.  <\/span>However, almost all insurers for expats, won\u2019t cover pre-existing conditions at a reasonable rate if you haven\u2019t already been insured through them.  <\/span>In other words, if you have a contract in 2018 and are insured by AXA through your company, if you lose your job in 2020 and got cancer or a heart attack in 2019, you won\u2019t be able to easily get insurance to cover those conditions unless you are part of a group scheme.  <\/span>So spending 1%-2% of your insurance on your own health insurance makes sense.<\/p>\n\n\n\n

2.  <\/span>Income protection due to ill health<\/strong><\/p>\n\n\n\n

The average age for expats claiming illness insurance is 43-44 in Asia, not 54 or 64! Oil and gas has it\u2019s stresses just like all jobs, but also some specific threats to your health.  <\/span>Like on health insurance, protecting your income if a disability or serious illness occurs, can be incredibly cheap, provided you don\u2019t already have pre-existing conditions.  <\/span><\/p>\n\n\n\n

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3. Life cover.<\/strong>  <\/span><\/p>\n\n\n\n

If you have kids or dependents such as elderly relatives or a partner who doesn\u2019t work, you need life insurance.  <\/span>Insurance though is dead money if nothing happens.  <\/span>Therefore, it makes sense to get as many benefits as possible, for the lowest possible price.  <\/span>If you can get your income, life and health insured for 5% of your income, it is a non brainer and helps you sleep at night .<\/p>\n\n\n\n

4. Income <\/strong><\/p>\n\n\n\n

If you are 55+ and are thinking about retirement, you should think about how your investment portfolio (which is hopefully relatively big by now) will fund your retirement.  <\/span>What income options exist?<\/p>\n\n\n\n

5. Property at home or abroad<\/strong><\/p>\n\n\n\n

This is part of estate planning and inheritance, but depend that, investing in property doesn\u2019t always make sense.  <\/span>It can do, depending on the area, whether you can find a buyer and so on. Expat mortgages can be reasonable and arranged.  <\/span><\/p>\n\n\n\n

6.  <\/span>Your current pension or savings<\/strong><\/p>\n\n\n\n

 <\/span>How well is it performing?  <\/span>Do you have too much money in the bank earning close to 0% or an underperforming portfolio?<\/p>\n\n\n\n

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In addition to the above, teachers have additional considerations, including the below:<\/p>\n\n\n\n

1. Teaching isn\u2019t the most lucrative occupation, but back home the pension benefits are substantial.  <\/span><\/strong>It isn\u2019t usual for a teacher to get a pension of 17,000-20,000GBP, in addition to the state pension of around 10,000 pounds.  <\/span>To put that in perspective, a teacher earning 27,000-30,000GBP in retirement would need a retirement post of over $1M if they did it privately.<\/p>\n\n\n\n

2. <\/span>Teachers overseas in international schools usually have bigger salaries, but less pension benefits<\/strong>.  <\/span>This makes saving, and saving from a young age, important, to ensure you have parity or better with your peers back home.  <\/span>If you are 30, investing $500-$800 may be enough to provide you with a good retirement come 60-65.  <\/span>If you have left it until age 45, in comparison, you may need to invest $1,500+<\/p>\n\n\n\n

3.  <\/span>Unlike expats in certain functions in oil and gas, teachers can often get at least part-time work at 65 or even 70.  <\/span><\/strong>An expat teacher who is 65 needs to carefully consider how they will fund retirement, including part-time income. Nobody knows when their health will go, so this shouldn\u2019t be an excuse for a younger expat to delay, but if you are in this unfortunate position, you need to see much your current pot could be worth on a monthly basis and then decide how many hours you need to work. <\/span><\/p>\n\n\n\n

adamfayed@iamgltd<\/em>.com – for more questions about this article.<\/p>","protected":false},"excerpt":{"rendered":"

Effective financial planning and pensions are crucial for expat teachers, with offshore pension bonds offering significant benefits. Last time I spoke about the needs of oil and gas workers.\u00a0 Teachers overseas are in a similar position in some ways but in a different situation in other words.\u00a0 The following points were made about oil workers […]<\/p>","protected":false},"author":1,"featured_media":65250,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10166176115445471_100883565069113":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[11829],"tags":[6],"class_list":["post-63","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-planning","tag-branding"],"_links":{"self":[{"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/posts\/63","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/comments?post=63"}],"version-history":[{"count":2,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/posts\/63\/revisions"}],"predecessor-version":[{"id":87288,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/posts\/63\/revisions\/87288"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/media\/65250"}],"wp:attachment":[{"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/media?parent=63"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/categories?post=63"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/adamfayed.com\/it\/wp-json\/wp\/v2\/tags?post=63"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}