One of the best pieces of expat pension advice is to never move or consolidate your pension without first checking the tax implications in both your home and host country.
Managing pensions as an expat is rarely straightforward, since cross-border tax rules, pension transfer options, and retirement planning strategies vary widely by country.
Without the right guidance, expats risk overpaying taxes, locking themselves into unsuitable pension products, or missing out on better retirement benefits.
This article covers:
- Who advises pension funds?
- What is the primary purpose of a pension plan?
- Should I transfer my pension or leave it?
- Is pension advice worth it?
My contact details are hello@adamfayed.com and WhatsApp +44-7393-450-837 if you have any questions.
The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.
Who is the best person to talk to about pensions?
The best person to talk to about pensions is a licensed international financial advisor with proven cross-border expertise.
While local planners may understand domestic rules, they often lack knowledge of double tax treaties, international transfer options, or offshore schemes.
For expats, only advisors experienced in global wealth management can provide pension strategies that align with your residency, retirement goals, and long-term financial needs.
What is the purpose of an expat pension plan?
The purpose of an expat pension plan is to secure retirement income while living abroad in a tax-efficient and legally compliant way.
Unlike standard pensions, expat pension plans are designed to accommodate changing residencies, multiple currencies, and different tax jurisdictions.
They also provide estate planning flexibility, helping ensure pensions can be passed on to heirs without unnecessary taxation.
What are the types of expat pension plans?
There are several types of expat pension plans:
- QROPS (Qualifying Recognised Overseas Pension Scheme): A common option for UK expats to transfer pensions abroad.
- International SIPPs (Self-Invested Personal Pensions): Another UK-centric option, but often marketed to mobile expats who want flexible, cross-border investment access.
- Offshore pension schemes: Used by expats of many nationalities, typically based in low-tax jurisdictions like the Isle of Man, Guernsey, or Malta, offering multi-currency investment and estate planning benefits.
- Employer-sponsored expat pensions: Global multinationals may create tailored pension arrangements for employees on international assignments.
- Private retirement savings / personal pension plans: In many countries (e.g., US 401(k)s, Canadian RRSPs, Australian Superannuation), expats must manage or sometimes transfer these when relocating.
What is the most tax-friendly country for expats?
In the context of expat pension, some of the most tax-friendly countries include Portugal, the UAE, and Malta.
Portugal’s Non-Habitual Residency regime can reduce or even exempt foreign pensions from tax for a limited period.
The UAE offers zero personal income tax, while Malta provides favorable double taxation treaties.
However, the best country depends on your nationality, retirement income source, and long-term residency plans.
What are the biggest financial mistakes that retirees make?
Common mistakes include:
- Ignoring home-country tax obligations
- Assuming pensions are automatically tax-free abroad
- Failing to hedge against currency fluctuations
- Taking advice from unregulated advisors
- Not updating estate and pension plans after relocating
What is bad expat pension advice?
Bad expat pension advice usually comes from unregulated or commission-driven advisors. Warning signs include:
- Promises of guaranteed high returns
- Lack of transparency on fees
- Pressure to transfer pensions unnecessarily
- Use of complex, costly structures without clear benefits
Taking advice from the wrong source can lead to higher taxes, poor investment performance, and loss of pension protections.
What is the best thing to do with your pension?
The best option depends on your situation. If you plan to return to your home country, keeping your pension where it is may be the most cost-effective choice.
If you are retiring abroad long-term, transferring to an international pension scheme can provide tax efficiency, currency flexibility, and estate planning advantages.
Regular reviews with a qualified expat pension advisor ensure your pension strategy remains aligned with changing laws and goals.
Is it wise to transfer a pension?
Transferring a pension can be wise, but it is not always the right move.
Transfers may provide better tax treatment, access to wider investment opportunities, and flexibility to receive benefits in your chosen currency.
However, they can also involve significant risks.
Independent advice is essential before making any transfer decision.
What are the risks of transferring pension?
Risks of pension transfers include:
- High fees and hidden costs: Many international pension products come with setup charges, annual management fees, and transaction costs. These can erode long-term returns, especially if the plan is held for decades.
- Loss of defined benefits: Transferring out of an employer’s defined benefit or final salary scheme often means giving up guaranteed lifetime income. Once transferred, this security cannot be restored.
- Currency volatility: Expats living abroad may receive pension payments in a currency different from the one in which their pension is denominated. Exchange rate fluctuations can significantly reduce retirement income and purchasing power.
- Regulatory uncertainty: Governments regularly change pension and tax rules, especially around offshore schemes. A plan that looks tax-efficient today may become less attractive if regulations tighten in the future.
- Fraud and mis-selling: Loosely regulated markets and aggressive sales tactics expose expats to unsuitable or even fraudulent pension products, with little recourse once money is transferred.
What are the benefits of transferring pension?
Despite the risks, pension transfers can be beneficial:
- Potential tax savings in favorable jurisdictions
- Wider investment flexibility
- Ability to manage assets in your preferred currency
- Estate planning efficiency, making it easier to pass pensions to heirs
- Avoidance of double taxation in certain cases
When done correctly, transfers can make retirement planning more efficient and secure.
Is it worth getting a financial advisor for pension?
For most expats, the answer is yes. A qualified advisor helps navigate tax treaties, structure pension transfers correctly, and balance global investments.
When selecting an advisor, look for:
- Proper licensing and regulatory oversight
- Experience with expat clients and cross-border planning
- Transparent fee structures without hidden commissions
- Strong track record and references from other expats or HNW clients
The right advisor can save significant money over time while reducing compliance risks.
How much does a financial advisor charge for expat pension advice?
Some advisors charge a flat consultation fee ranging from USD 500 to 3,000 for an initial pension review, while others use an hourly rate of USD 150–400.
For ongoing management, many international financial advisors work on an assets under management (AUM) basis, typically 0.5%–1% annually.
Commission-based advisors may charge indirectly through product fees.
Always ask for a clear fee breakdown before engaging an advisor to avoid hidden costs.
Conclusion
Expat pension advice is more than just choosing where to keep your retirement savings.
It’s about aligning your pensions with global tax rules, currency considerations, and estate plans.
By working with a qualified international financial advisor, expats and high-net-worth individuals can secure a retirement plan that protects wealth while optimizing income across borders.
FAQs
What is the best country to retire as an expat?
Do you get pension if you live overseas?
Yes, most pensions can be paid overseas, but tax treatment and payment options vary by country and pension scheme.
What is the meaning of expat retirement?
Expat retirement means choosing to spend retirement years outside your home country, requiring tailored pension, tax, and estate planning.
What to do with my pension if I move abroad?
You can leave it in your home-country scheme, transfer it to an international pension, or explore offshore options depending on your tax obligations, retirement destination, and personal goals.
Pained by financial indecision?
Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.
