If you’re a UK expat living in Australia, you are likely to face particular challenges when putting together your financial plan.
Issues such as taxation, investments, and the regulatory framework governing your retirement savings all need careful consideration. Having assets in two financial jurisdictions can easily add complications to your planning.
Because of this, you need a robust, detailed cross-border financial plan that accounts for your assets and financial interests in both countries.
Read on to find out why a detailed plan is so important if you are an expat, and how we can help you design yours.
Your cross-border plan will reflect your long-term financial objectives
A financial plan gives you peace of mind that you are in control of your finances and have a clear roadmap towards achieving your goals.
This is particularly important for a British expat in Australia, as cross-border financial management can create complex scenarios that are best approached with a detailed plan in place rather than in a piecemeal fashion.
By making a plan, you can thoroughly review your objectives and aspirations so that they sit at the heart of your financial strategy, giving you a clear idea of how to achieve them.
It will also ensure that you’re prepared for emergencies or unexpected events and can take advantage of financial opportunities as they arise.
It’s important to always be aware that your plan won’t be set in stone. As an expat with potentially assets in more than one country, you must be able to adapt your plan to reflect changes in both your circumstances and your future aims.
However, the underlying principles of your plan – accruing wealth and protecting yourself and your loved ones – are likely to be present throughout.
Your plan will be unique to you and deal with specific issues related to being an expat
While addressing the issues raised by your potentially complex financial arrangements, the high-level objectives of your plan will be the same as if all your assets were in one country. These include:
- Securing a comfortable retirement
- Protecting your loved ones if you are unable to provide for them
- Growing your wealth as effectively as possible
- Ensuring robust legacy planning so your wealth passes to your chosen beneficiaries
- Maximising tax efficiency at every opportunity.
However, beneath those distinct aims, your plan should reflect the different financial arrangements you may have in the UK and Australia, as well as the specific challenges of being an expat.
These will depend on your own circumstances, but may feature:
- Mitigating currency risk involved in moving assets from one country to another
- Developing an investment strategy for assets in two countries
- Supporting family in the UK, particularly elderly relatives, with appropriate financial planning
- Creating an income by renting your UK property
- Planning for your eventual retirement and what to do with pensions held overseas.
In addition to those issues, you may also want to factor in the financial requirements of your potential future return to the UK.
Regular reviews and cashflow forecasting can help keep you on track to meet your financial goals
As you have read, putting your plan together is just the start.
It’s important to review it regularly to ensure it is still fit for purpose. Circumstances that may prompt you to consider amending your plan include:
- Changes in your family or work circumstances
- Plans to return to the UK
- External events, such as a period of high inflation or an economic downturn.
We would also recommend that you review your plans as you get close to your chosen retirement age.
One common problem with financial planning is that it’s difficult to predict what’s going to happen in the coming years.
However, by using an effective cashflow forecasting system, we can help you see how your financial position is likely to develop in the future.
You can also assess the effects of various scenarios to see how robust your plan is and whether you need to make any changes.
Find out more: How cashflow forecasting can help you plan your financial future
Get in touch
Expert advice and regular reviews of your financial plans can help ensure that you are best positioned to achieve your long-term goals.
At bdhSterling, we specialise in helping clients navigate the complexities of cross-border financial planning. Whether you’re managing assets in multiple countries or planning a move abroad, our expert advisers can help you build a resilient, long-term financial strategy.
If you would like to discuss your own plans, please get in touch with us today.
Please note
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
This article is for information only, it does not take into account your personal objectives, financial situation, or needs.
Please do not solely rely on anything you have read in this article and ensure that you conduct your own research to ensure any actions you may take are suitable for your circumstances.
All contents are based on our understanding of HMRC and ATO legislation, which is subject to change.