Retirement Planning The Offshore Way
By R.L. Williamson, Thu Dec 8th
Retirement Planning the Offshore Way Why do so many of us constantly push the thought of retirementplanning to the back of our minds? Reluctance…!
1Reluctance to save for an event that seems so far off2Reluctance to tie in to an inflexible pension scheme3Reluctance to put a large portion of our current income out ofreach for the long term But in terms of retirement planning, putting off until tomorrowthat which you could get done today will end up costing you verydearly. Every month you delay your retirement savings planning, yousignificantly reduce the value of your future potentialretirement fund. Or put another way, every month you delay yourretirement savings planning you significantly increase theamount that you will need to invest to achieve the same level ofretirement income than if you’d started today. If a 25 year old and a 35 year old were to start saving forretirement at 55 and the 25 year old invested £300 a monthtowards retirement, the 35 year old would have to increase hiscontributions to £803 a month to achieve the same potentialreturns. At the state retirement age of 65 the average man will have some19 more years to live and the average woman, 22 years. You willhave to support yourself without work and, very likely, withoutstate income. This means that you will spend 25% to 30% of your life inretirement. You will need substantial sums of money to support yourself inretirement in the manner to which you will have becomeaccustomed throughout your life to date. Recent figures show that individuals aged between 25 and 44 aresaving 1/3rd of the amount they should be saving in order tosupport their current lifestyle in retirement. In most countries you are forced to make your own pensionprovision if you want to have any chance of a comfortableretirement. The value of the government pension that you couldonce rely on is diminishing every year. Ready to Start Planning? If you’re an expatriate you are in a more privileged positionthan most – chances are you’re enjoying a higher salary andextra benefits as a result of working away from home.Furthermore expatriates have greater freedom when it comes tomaking investment decisions: they are not necessarily restrictedby the same regulations that domestic investors experience. Decisions That
Need To Be Made The most sensible solution would seem to be finding a safeharbour to anchor your retirement investments so that you canmove from country to country as necessary without this havingany negative impact on your assets. However, if you decide to do this you need to decide exactlywhere that safe harbour should be. Offshore financial centres present a viable solution -especially if you are undecided as to your eventual retirementdestination. Basing your pension investment offshore should meanthat future movements of capital or income are not impeded. What To Be Aware Of Your own personal circumstances are unique. Be realistic about how much you should be contributing. Consider the charges the bonuses and the flexibility of anyinvestment plan - generally the more flexible the plan the morecharges will be. Know that a good offshore retirement plan should allow you to dothe following without penalty:- 1Reduce contributions without penalty (normally after an initialperiod of one to two years). 2Switch investments betweendifferent funds to respond to changes in the market. Preferablyincluding funds managed by other people outside of theinstitution zone. 3Have the option of retiring when you want towithout penalty. 4Allow certain access to monies invested(again, after an initial period). How to Find the RIGHT Solution Finding out what each provider's best products are currently,and then hand picking the best to suit your own personal needsand current circumstances is the best idea! But how impractical! Do you have the time to do this? Would you consider yourself an expert in offshore investmentsand pension planning? Where would you start? Obviously professional advice will get you the right solutionand save you time and money and reduce your cost of delaysignificantly! To find out more about what solutions are on offer in the marketplace and to learn more about offshore investing and saving foryour future, visit http://www.offshoreinvestmentguide.com today. Discover how to build wealth, enjoy greater privacy, protectyour assets and secure your financial future with the OffshoreInvestment Guide. http://www.offshoreinvestmentguide.com About the author:R L Williamson is an independent offshore financial specialist. She has worked in the fields of financial advice, specialisingin retirement planning and she has worked in investment banking. |
