It is never too early to start thinking about how you will finance your golden years. If you’re already retired, you should regularly review your arrangements to ensure you continue meeting your goals.
Approaching retirement
There are things you need to consider to ensure you are on the right track financially and steps you can take today to help make your dream retirement a reality. Ask yourself:
- Will I be able to afford to retire when I want to?
- What is the best strategy for withdrawing from my business or employment?
- What options do I have for my pensions?
- Can I retain my existing wealth and assets?
- Do I want to spend my retirement in Spain?
Professional financial advice can prove invaluable. An adviser can take a holistic view of what you have – your savings, investments, assets, pensions – together with what you want – your timeline, income requirements, legacy wishes – and an objective assessment of who you are – your circumstances, goals, risk appetite – to design a personalised retirement plan for you.
Already retired
If you have already reached retirement age, that doesn’t mean you should forget about retirement planning. Regular reviews allow you to adapt your strategy to suit your changing circumstances and goals, plus keep up with the ever-changing tax and pensions landscape.
Your pension options
Deciding what to do with your pensions may be one of life’s most important financial decisions. Pensions are complex and with more choice than ever you must take care.
You might benefit from consolidating several UK pensions to provide a coherent, more cost-effective investment platform for your retirement income.
Britons moving or resident abroad may have the option of transferring UK pensions to a Qualifying Overseas Pension Scheme (QROPS). Note however that transfers from the UK (and other third country) pensions into an EEA scheme makes the fund value liable to Spanish income tax. If you are not yet tax resident in Spain, you have a limited opportunity to transfer your pension out of the UK without this tax liability.
Retiring in Mallorca
If you have yet to move to Spain but wish to retire here, review your retirement strategy early. You need to consider your residence status and cross-border tax implications in a post-Brexit world and adapt your estate planning to suit Spanish succession rules.
Careful planning is the key to minimising taxation and maximising the available opportunities so you can enjoy your dream retirement.
Summarised tax information is based upon our understanding of current laws and practices which may change. Individuals should seek personalised advice.
Keep up to date on the financial issues that may affect you on the Blevins Franks news page at www.blevinsfranks.com