5 ways to plan for the future as an expat living abroad

3 min read

As an expat, the chances are that you think about money much more than you did when you were back in your country of origin. Whether that’s because you’re earning more, trying to more frugal with your savings, or you’re thinking about retirement and your future, it’s so important to be vigilant with your finances and think long-term. Below, we’ve put together some tips on planning for the future as an expat living abroad – let us know what you think.

Your pension is important

If you migrated from the UK to another country and paid enough National Insurance contributions, you’ll qualify for a State Pension in your new country of residence. However, it’s important not to rest on your laurels and invest in a private pension on top. Remember that you’ll have to deal with currency exchange fees when moving your pension from one country to another, so setting up a local pension is the most cost-effective method. Speak to an independent advisor who’ll recommend the most appropriate pension product for you.

Diversifying your income streams is wise

You might have a full-time job and a pension, but it’s always wise to diversify your income streams where possible. Setting up a side hustle can give you another source of income, whilst there are a number of ways to make safe investments as an expat in stocks, shares, and other forms. Do your research before handing over any money; it pays to take your time.

Speak to your employer

Don’t do it all on your own. Many countries have mandatory employee contribution schemes where businesses have to set aside money for a private pension or allow employees to take stocks from a business as part of their service. Speak to your employer about the schemes they have in place and let them know that you’re committed to them – they’ll be more likely to want to invest in you and your own future if they know you’re sticking with their organization.

Pay off that mortgage

Whilst interest rates are at record lows in many parts of the world right now, it still pays to pay off your mortgage when you can. If you’re able to live mortgage free for ten years before you retire, you’ll have significantly more money to invest in your future, whatever your chosen path may be. What’s more, paying off a mortgage young gives you the peace of mind that your monthly outgoings will be low, making life that little bit more comfortable.

Consider investing in property

Although the market changes on a regular basis, the chances are that property is one of the most sensible and low-risk investments in your new country of residence. Not only does property appreciate in value virtually year-on-year, but it’s a physical asset and is much less risky than putting your money into stocks and shares. An added benefit is that you’ll become a landlord (or holiday homeowner) and can generate monthly returns on your investment, as well as have the peace of mind that you can free up a chunk of money should you need it.

There you have it – our tips for expats. Check back to our site soon for some more advice.