M

HOME | OUR SERVICES

Expat Retirement Guide

Plan your retirement with clarity and confidence abroad.
A complete guide for expats to secure, grow, and enjoy their future.

Book your free consultation
Speak to adviser

Service

Expat Retirement Guide

Thinking of retiring overseas? Whether you’re planning ahead or already living as an expat, managing your pensions and preparing for a financially secure retirement abroad requires more than guesswork. This guide offers expert advice on everything from pension transfers and tax implications to choosing between QROPS and SIPPs.
Speak to an adviser
Book your free consultation

Why Retirement Planning Matters More for Expats

As public pensions become harder to rely on and retirement ages increase globally, expats face even greater complexity. Different tax systems, cross-border regulations, and investment rules can significantly impact your retirement income. Poor planning can result in:

  • Limited access to funds
  • Unnecessary taxation
  • Currency exchange losses
  • Difficulty managing multiple pension pots

But with proper strategy, your international retirement can be smooth, secure, and even more rewarding than you imagined.

Speak to an adviser
Book your free consultation

Understanding Pension Schemes: What You Need to Know

Defined Contribution Pensions (DC)

  • These include:
    • Personal Pensions
    • SIPPs (Self-Invested Personal Pensions)
    • SSAS (Small Self-Administered Schemes)

Disadvantages:

  • No guaranteed income
  • Investment risk

Advantages:

  • Flexible investment choices
  • Tax relief on contributions (UK)
  • Access from age 55 (57 from 2028)
  • Option to pass on pension to beneficiaries
  • Suitability for consolidation

How they work:

  • You contribute regularly. These contributions are invested. Your final pension value depends on market performance and how much you’ve put in.

Defined Benefit Pensions (DB)

Also known as:

  • Final Salary Schemes
  • Occupational Pension Schemes

How they work:

  • Your employer promises a fixed pension amount based on your salary and years of service. Income is usually guaranteed for life and may continue for a spouse or dependent.

Disadvantages:

  • Less flexibility
  • Harder to transfer (and may be less beneficial if retiring abroad)

Advantages:

  • Guaranteed, predictable income
  • Often includes spouse and death benefits
  • Usually employer-funded

Pension Transfers for Expats: Why They Matter

If you’re living overseas or plan to retire abroad, it’s crucial that your pensions are portable, tax-efficient, and consolidated. Many retirees hold pensions with multiple former employers or providers. Without proper transfer, access can be complicated or even restricted.

  • Key Benefits of Pension Transfers:
    • Easier access to your money internationally
    • Potential tax advantages based on your country of residence
    • Opportunity to consolidate several pensions into one pot
    • Improved control over currency risk
    • Estate planning flexibility (some schemes allow full transfer to heirs)
Speak to an adviser
Book your free consultation

SIPP vs QROPS: Choosing the Right Path

Self-Invested Personal Pension (SIPP)

SIPPs are ideal for those who want flexibility and control. They let you manage your investments or appoint a financial adviser to do so.

Best for:

  • People with UK residency or expats still liable for UK tax
  • Retirement pots under £1 million
  • Flexibility and DIY investors

International SIPP Features:

  • Multi-currency investment options
  • Access from anywhere in the world
  • No need for UK residency

Qualifying Recognised Overseas Pension Scheme (QROPS)

QROPS are HMRC-recognized overseas pension schemes that can receive transfers from UK pensions. They’re particularly suitable for expats planning to retire abroad long term.

Best for:

  • Expats with pension values over £1 million
  • Those living permanently outside the UK
  • Individuals concerned about the UK Lifetime Allowance (LTA)
  • Enhanced estate planning

Considerations:

  • You must be outside the UK for 5+ years to enjoy full QROPS tax benefits
  • Charges may be higher than a SIPP
  • Fewer providers since post-Brexit regulatory changes

Tax Considerations for Expat Retirees

When retiring abroad, tax is a crucial factor in deciding whether to transfer your pension or leave it in the UK.

Common Tax Issues:

  • Double taxation: Some countries may tax both the pension income and the lump sum.
  • Foreign pension rules: Tax treatment of UK pensions differs by country.
  • Currency conversion: Transferring at the wrong time can reduce your real income.

Solutions:

  • Use Double Taxation Agreements (DTAs) between the UK and your country of residence.
  • Work with an adviser to structure your pension income tax-efficiently.
  • Time withdrawals according to market and currency trends.

Estate Planning and Inheritance

Your pension can be a key part of your estate. However, different schemes offer different rules about passing on your pension after death.

Key Points:

  • Defined Benefit pensions may not allow full transfer to heirs.
  • SIPPs and QROPS typically allow 100% of the pension fund to be passed to beneficiaries.
  • QROPS may avoid UK Inheritance Tax if properly structured.

A good adviser can help you align your pension strategy with your estate planning goals—so your family is protected.

Common Mistakes Expats Make

  1. Leaving pensions in multiple schemes without consolidating
  2. Ignoring currency risk when drawing income
  3. Failing to update beneficiary nominations
  4. Missing local tax filing requirements
  5. Relying on UK-based advisers unfamiliar with expat law
Speak to an adviser
Book your free consultation

EVERYTHING ABOUT GALILEO

Pension Transfer Questions

How is a pension transfer value calculated?

Defined Contribution: Based on the current value of investments minus fees.

Defined Benefit: Based on a CETV (Cash Equivalent Transfer Value) calculated by the scheme trustee.

Are there transfer penalties?

Some DB schemes apply a penalty or reduce CETV if transferring before a certain age.

Transferring to an unauthorized overseas scheme can incur a 25% tax charge.

What happens to my UK state pension?

You can still receive it abroad, but it may be frozen (no annual increases) depending on your country of residence.

Why Choose Galileo Wealth?

01

25+ years of international pension experience

02

Specialists in both UK and offshore pensions

03

FCA-regulated advisers with expat expertise

04

Transparent fees and personalized service

05

Trusted by 1,000+ expats globally

Get a Free Personalized Retirement Review

At Galileo Wealth, we offer a free, no-obligation consultation to:

  • Identify all your existing pensions (including frozen pots)
  • Recommend suitable transfer options
  • Help with QROPS or SIPP setup
  • Design a drawdown strategy aligned to your country of residence
  • Minimize tax and currency risk

Case Study: UK Executive Retiring in Portugal

Name: Richard (age 60)
Situation: Has 3 pensions – 1 defined benefit and 2 defined contribution
Goal: Retire in the Algarve and reduce UK tax exposure

  • What we did:
    • Transferred DC pensions into an International SIPP
    • Kept DB scheme due to guaranteed income and spouse benefits
    • Created a tax-efficient withdrawal strategy under the UK-Portugal tax treaty
    • Protected income from currency risk by investing in EUR assets

Ready to Talk?

Secure your ideal retirement overseas.

Speak with a licensed international retirement planner today

Speak to an adviser
Book your free consultation