Offshore Savings

Hannah Beecham  Tuesday, Feb 16 2010 16.01

Saving for Retirement

International retirement planning sounds like a complex subject, and indeed it can be. In common with most complex issues the best approach is to start with the basics, the foundations, and build upon them.

All journeys through life have a beginning, middle and end. Planning for your retirement is no different. Setting clear objectives requires having a clear understanding of the following:

• what you wish to achieve
• by when
• how you're going to do it.

What will retirement look like?

Start with understanding exactly what you want your retirement to look like. Are you intending to return home, live in a new country with a different monetary currency, change lifestyle or continue working on a part time basis? Answering this question is vital in setting an income target for your retirement, without which any retirement plan is doomed to failure.

When do I want to retire?

You have a vision of how your retirement will look, but when do you expect to commence your new life? Realistically, the typical target age range for retirement is somewhere between 50 and 70. Have a date in mind and allow a window either side to cater for changes in circumstances.

How do I put my plan into action?

Firstly, take good advice from a reputable adviser. Recommendations from friends or colleagues are a good starting point but do check that any adviser is appropriately regulated and authorised. Your adviser will take into account any existing provisions such as deferred pension schemes and your investment portfolio. Having conducted this exercise, your adviser may have identified a potential shortfall or gap between your retirement ambitions and your current position. You will have to consider options to rectify any shortfall, which may require additional financial commitment.