A study into expatriates moving abroad has revealed some basic errors that are made by people who have just moved to a new country.
Apparently, some of the most common ‘basic mistakes’ come in the form of financial errors, for example correctly opening a new bank account.
The research, conducted by wealth managers from the UK, suggest that there are five main mistakes that are commonly made- opening an overseas bank account, writing a will, getting insurance, covering tax matters and sorting out a pension.
The subject of writing a will is often brought up amongst expats, even if you have written a will in the UK you will still need to create a new one overseas, as you may be in a country that will not recognise the one you have in place. For instance, this could be a factor in many popular Muslim countries, the UAE, as they will be governed by Shariah Law.
Setting up a bank account is also vital, as it will make menial financial tasks in your new country, paying local bills, much easier.
The next basic error is correctly informing HMRC that you are leaving the UK. By not doing this you may become liable for excessive tax, yet despite this grave financial issue many people forget to inform the UK tax authority.
Insurance is the next issue, expatriates are always advised to take out adequate insurance polices for their life abroad, i.e. life insurance and critical illness insurance.
Finally, and perhaps most importantly, making sure you have a good pension plan in place is of the utmost importance if you are to enjoy a comfortable retirement after your life of hard work. For expats there are special pension transfers, such as QROPS, that enable you to get the most out of UK pension plan.
If you are a new expat, or are soon to become one, then speak to a recommended financial adviser who will be able to help you with any financial queries you may have.