If you are thinking of retiring abroad, be aware of how where you choose to retire to will affect your future pension.
John Lawson, Head of Pensions Policy, Standard Life commented: “Retiring abroad is a dream for many people, but does require careful planning and advice. Many people think living abroad is cheaper than living in the UK, but this isn’t always the case. Doing your homework in advance of moving, matching your retirement income and expenditure, and making the appropriate decisions around purchasing an annuity or using income drawdown are key considerations. Your retirement income could also be subject to exchange rates and currency fluctuations, as well as local tax laws.
Increases in UK State Pension
“You also need to think about your state pension and what, if any, reciprocal agreement is in place. A...