Expat Banking and Finance


Poll reveals lack of retirement financial planning by expats

by Ray Clancy on November 19, 2014

Retired expats are known for seeking the best possible location for their retirement, but many have not saved enough money to make themselves comfortable, it is suggested.

An international survey has found that over 50’s believe that their number one financial mistake is not saving enough for their retirement, according to a poll carried out by an independent financial advisory organisation.

moneyLAUNDRY

34% of retired expats said that not putting enough money aside for retirement was their biggest regret

Some 34% of those polled by the deVere Group cited not putting enough aside for retirement was their biggest financial error.

The second most frequent response at 27%, was believing that they could successfully manage their financial affairs without professional advice.

The poll also found that 19% felt their biggest error was letting emotions rule over investment decisions, while 11% said it was a lack of diversification in their portfolios, 7% said it was not being adequately protected by insurance and 2% did not know.

A sample of more than 750 clients over the age of 50 were polled in various countries in which the firm operates, including the UK, the United States, South Africa, Hong Kong, the United Arab Emirates, Thailand, Indonesia and the Philippines.

‘It’s with a depressing predictability that this survey concludes that more than a third of the over 50s feel that they have not accumulated enough funds. The harsh reality is that unless there’s a seismic cultural shift in attitudes towards savings, many more people will reach the age of retirement and realise that there is just not enough in their pension pots to last throughout their retirement, or enough to enable them to enjoy the retirement they had envisaged,’ said Nigel Green, deVere Group’s founder and chief executive.

‘Putting money aside for later in life has never been more important because life expectancy is increasing, meaning the funds have to last perhaps two decades longer than even a generation ago. Living, care and medical costs will, naturally, all increase over time, interest rates and annuities are at rock bottom and it is highly improbable that the State will be able to financially support retirees in the future as it has done previously,’ he added.

He pointed out that the survey also highlights that too many people have previously believed that they could ‘go it alone’ managing their wealth and have committed costly blunders along the way.

‘The most important things in life, including financial security, cannot be left to chance. The best way to safeguard and maximise wealth is to devise, manage and implement a tailor made plan with a professional,’ he said.

‘The third biggest financial mistake cited by the over 50s was allowing their heart to rule their heads with investments. If your primary aim is to secure the best returns, investment decisions should be rational and dispassionate. Pride and bias can cloud judgement and this is, again, another reason why working with an independent expert is beneficial,’ he added.

He was also concerned that another considerable financial mistake the over 50s have previously made and now flagged in the poll is a lack of diversification in investment portfolios. ‘History teaches us that risk is reduced through diversification. A properly diversified portfolio should provide exposure to each stage of the economic cycle while avoiding over commitment,’ explained Green.

He was also concerned about the number of respondents who said that a lack of insurance has held them back financially when things go wrong which, unfortunately, sometimes they do.

‘One of the cornerstones of personal wealth management is protecting primary assets which, typically, include yourself as a source of income for you and your family, your home and your business. Therefore life, critical illness and business cover, amongst other types of insurance, are essential,’ Green concluded.

{ 0 comments }

Thumbnail image for Finance jobs in Asia help make Australians the highest expat earners

Finance jobs in Asia help make Australians the highest expat earners

November 11, 2014 Expat Banking and Finance

Australian expats are the wealthiest in the world, with 20% earning more than $200,000 USD, according to new research. They are in an exclusive club, as only 11% of expats earn this kind of money, the annual expat report from the Hong Kong Shanghai Banking Corporation has found. Another 10% of Australian expats earn more [...]

Read the full article →
Thumbnail image for UK taxman may dig deeper into expat banking and investment earnings

UK taxman may dig deeper into expat banking and investment earnings

November 7, 2014 Expat Banking and Finance

Expats working for investment banks, private equity firms and hedge funds can expect the UK taxman to probe deeper into their financial affairs in the coming years. Tax investigations into expats working as investment bankers or fund managers in the UK yielded record revenue in 2013/2014, and enforcement activity is expected to increase, according to [...]

Read the full article →
Thumbnail image for Expats boost the use of new tech banking

Expats boost the use of new tech banking

November 3, 2014 Expat Banking and Finance

Expats are leading the way in terms of using online banking — little wonder, as it makes money trasfers so much easier than traditional banking. Face-to-face banking just doesn’t work when you are living abroad, especially if you have banks accounts in more than one currency and want to move money around regularly. Indeed, the [...]

Read the full article →
Thumbnail image for British expats urged to check their Premium Bonds with over £3 million unclaimed

British expats urged to check their Premium Bonds with over £3 million unclaimed

October 30, 2014 Expat Banking and Finance

British expats are sitting on over £3 million of Premium Bonds prizes that are unclaimed, with the largest amounting to £100,000. Premium Bonds are the UK’s most popular form of savings provided by National Savings and Investments (NS&I), which has almost 850,000 overseas-based customers with nearly £750 million Premium Bonds to their names. Of these, [...]

Read the full article →
Thumbnail image for Court decision clarifies residency issue for New Zealand expats

Court decision clarifies residency issue for New Zealand expats

September 24, 2014 Expat Banking and Finance

Kiwi expats with property investments in New Zealand should be breathing a collective sigh of relief following a High Court decision on residency. The New Zealand High Court has overturned a 2013 Taxation Review Authority (TRA) decision that a New Zealander living and working overseas for more than 10 years was still a New Zealand [...]

Read the full article →
Thumbnail image for British expats urged to take action on banking change

British expats urged to take action on banking change

September 10, 2014 Britain

British expats are being urged to join a campaign to change banking rules which say you must have a UK address to open a bank account in the country. Many expats keep their accounts when they move abroad, but once they are overseas they can no longer move or change their accounts even within the [...]

Read the full article →
Thumbnail image for Expats buying more affordable property in the UK

Expats buying more affordable property in the UK

September 4, 2014 Britain

British expats are increasingly buying property in the UK, but they aren’t splashing out, with the most popular investments in the £55,000 to £70,000 range, research has found. According to Find UK Property, a company that specialises in finding properties for overseas investors, sales to British expats have increased by 60% in the first half [...]

Read the full article →
Thumbnail image for British expats could be worse off under UK tax change proposals

British expats could be worse off under UK tax change proposals

August 12, 2014 Britain

Hundreds of thousands of British expats face paying tax on all of their UK income under new proposals being drawn up by the Treasury. At present, European Union nationals and British expats are entitled to offset income earned in the UK against the national personal allowance of £10,000. This means that for Brits who live [...]

Read the full article →
Thumbnail image for Retired British expats warned over currency fluctuations

Retired British expats warned over currency fluctuations

July 15, 2014 Expat Banking and Finance

Retired British expats in the Eurozone who are currently benefitting from a strong pound are being urged to remain cautious of potential currency fluctuations by a senior analyst at one of the world’s largest independent financial advisory organisations. The warnings from Tom Elliott, international strategist at deVere Group, which has 80,000 (mainly) expatriate clients globally, [...]

Read the full article →
Thumbnail image for US to see changes to offshore amnesty tax programmes

US to see changes to offshore amnesty tax programmes

July 10, 2014 America

The Internal Revenue Service in the United States has announced major changes to its existing amnesty programmes which were created to encourage delinquent taxpayers with offshore assets to come forward and become compliant with their US taxes. The two programmes, the Streamlined Procedures and the Offshore Voluntary Disclosure Program (OVDP) were launched in 2009 and [...]

Read the full article →
Thumbnail image for British expats in Eurozone now getting more from their pensions

British expats in Eurozone now getting more from their pensions

July 9, 2014 Expat Banking and Finance

British expats living in the Eurozone have seen their state pension increase by 10% in the past year due to beneficial exchange rates, new research shows. This means that the value of the UK state pension when paid in euros is now at an all-time high, with the increase largely due to the soaring value [...]

Read the full article →
Thumbnail image for Global regulatory changes are affecting expat investors

Global regulatory changes are affecting expat investors

July 8, 2014 Expat Banking and Finance

US expats are being told by financial services firms that they can no longer buy or trade mutual funds due to a stricter global regulatory environment. This means that when it comes to certain financial investment vehicles, they will not be able to undertake some investments because they live in a foreign country. One of [...]

Read the full article →