.png){kind=tracking}
.webp)
I’ve been giving financial advice to English-speaking clients who live outside of their home country for the last 23 years (of which the last 13 years in France), and they certainly are a varied bunch of folks.
Some have settled into their new country and new lifestyle very well, others not-so-well, and a few of these not-so-well people have now returned back to their home country.
Over the years, I have looked in depth at why this was the case, and there was a constant thread running through the settled ones. They planned their finances (and then sat back and enjoyed retirement). I’m talking about people who have now retired to another country (as opposed to moving abroad for work) and are relying on their pensions and investments to pay their bills, as 95% of my clients tend to fit into this category.
Understandably, retiring to another country is often a decision made purely on emotions—after a long working life, there is a desire for less work, a new lifestyle, and a better climate. However, to make a success of retiring abroad, facts as well as emotions need to enter the equation.
I equate financial planning to visiting the dentist. You tend to visit the dentist for two main reasons: either you have a horrendous toothache now, or you don’t want a horrendous toothache in the future.
Those who have planned in advance have visited their dentist regularly, and the dentist has put a plan in place to look after their teeth and avoid future toothache. Those who didn’t visit regularly end up at the dentist’s door with a swollen face and a toothache, leaving the dentist with fewer teeth in their mouth.
Good, regulated Financial Planning is essential to avoid Financial Toothache.
So, how do you make sure your bills and other expenses are paid for as tax-efficiently as possible when you have retired in France?
If you have moved (or are thinking of moving) to France from the UK, you need to be aware that France has a completely different tax system, currency, and inheritance rules. To get the right advice, it is essential to talk to an International Financial Adviser who understands the rules and regulations of both the UK and France.
For example, some people living in France are happy to keep their investments in UK deposit accounts, which make little or no interest, and often don’t even beat the inflation rate, meaning their investment is now moving backwards. Others continue to keep their investments in UK ISAs and Premium Bonds, but in France’s tax regime, the capital gains made on these are now taxable at 30% and must be declared annually, whether withdrawn or not.
Nowadays, due to historically low interest rates, to make any sort of return, you need to take a measured amount of risk within your risk profile while remaining as tax-efficient as possible in France.
Have you spoken to your International Financial Adviser about the options available for your savings and investments as a French tax resident?
For example, the UK pension freedom act (2015) presents many options for your pension retirement savings. You are no longer forced to purchase an annuity at historically low rates. In fact, UK annuities may become the next version of the PPI scandal, with Prudential and Standard Life both receiving large fines recently.
Have you spoken to your International Financial Adviser about the best options available for your UK pension savings as a French tax resident?
Make the first step now. Talk to your International Financial Adviser or visit our website:
https://beaconglobalwealth.com, where you can download our free booklet: “A stress-free retirement in France.”
Paul Flintham is an International Financial Adviser with Beacon Global Wealth Management in France and can be emailed directly at: paul@bgwealthmanagement.net.
Beacon Global Wealth Management
Central Administration Office
250 High Street, Guildford GU1 3JG, United Kingdom
Tel: +44 333 241 6966
Email: enquiries@bgwealthmanagement.net
Web: https://beaconglobalwealth.com
Beacon Global Wealth Management are members of FEIFA (the Federation of European Independent Financial Advisers): https://feifa.eu/
Before you engage us, we’ll get to know you to make sure we’re a good fit in terms of understanding what is most important to you.
After our discovery call, we will summarise our understanding of your current situation and the key objectives which will ensure we're aligned with your goals.
Once you’re happy that we’re right for you, we’ll provide our recommendations and implement them for you. But there’s never any pressure from us to proceed – that’s just not our style.
We will implement your plan, constantly monitor and report on the performance to ensure your private wealth is optimised and aligned with your goals and working for you. Additionally, we’ll provide you with regular statements and a half yearly review to ensure that you remain up to date with any investment or tax changes and that we continue deliver for the long term.
