Pensions 'vacuum' warning for expats

Pensions 'vacuum' warning for expats

Expats are more likely than those in the UK to have lost track of their retirement savings, with more than a third of expats misplacing their pension pots.

Independent financial advisor deVere Group says expats are typically more likely to have lost track of their pensions because they are more likely to have worked for several employers over their careers, and more likely to have worked in several different countries.

This scenario creates "the perfect storm for a pensions vacuum", according to deVere Group chief executive Nigel Green.

He said: "Due to the types of careers they have, and lifestyles they lead, expats will typically reside in several overseas destinations throughout their working lives, and be employed by several employers.

"A consequence of a more transient lifestyle is that it is more of a challenge to keep up to date with personal finance admin, such as informing providers of new addresses. As such, many expats find that their accumulated retirement savings can all too often become lost over the course of time.

deVere Group said this is not solely an issue for those approaching retirement - a high proportion of the 1,100 people polled who said they had misplaced pensions were in their 30s and early 40s.

Green added: "It's important that we stay on top of all personal financial matters, but perhaps particularly so with pensions as it maybe some time until they have to be accessed.

"It is also true because we're all living longer meaning we have to save more than ever to be able to fund a comfortable retirement, and because the State will not be able to provide the same level of support it has been able to previously."