More than a third of expatriates have misplaced pension pots we believe as a company reveals one of the world’s largest independent financial advisory organisations.
deVere Group findings show that expats are typically more likely than those who remain in their ‘home’ countries to have lost track of retirement savings because not only are they likely to have worked for several employers over their careers, but also worked in several different countries.
It is a scenario that creates the perfect storm for a pensions vacuum. In a global poll of almost 1,100 new and potential expat clients since January, 36 per cent admitted to having lost track of retirement funds over time.
I believe that due to the types of careers or clients and prospects have, and lifestyles they lead, that the typical expat wil reside in several overseas destinations throughout their working lives, and be employed by several employers. A consequence of a more transient lifestyle is that it is more of a challenge to keep up to date with personal finance admin, such as informing providers of new addresses. As such, many expats find that their accumulated retirement savings can all too often become lost over the course of time.
This is not just an issue for those who are nearing retirement. Our poll shows that a high proportion of those in their 30s and early 40s also have misplaced pension pots.
It’s important that we stay on top of all personal financial matters, but perhaps particularly so with pensions as it maybe some time until they have to be accessed. It is also true because we’re all living longer meaning we have to save more than ever to be able to fund a comfortable retirement, and because the State will not be able to provide the same level of support it has been able to previouslyAs a company deVere recommend that expats who have lost track of pension pots should contact an independent financial adviser (IFA) with specialist cross-border experience who can contact pension schemes to obtain information on their behalf. Once the retirement savings have been recovered, the IFA can then advise on how to protect and maximise the funds using the established financial products that are exclusively available to expatriates, allowing them in many cases to become significantly better off than their contemporaries in their country of origin.
Nigel Green deVere Group
Written 4th December