Our retirement scorecard can really help you plan for a successful financial future

Category: Australia & News

In an article earlier this year we confirmed the launch of our retirement scorecard, which involves you answering a series of questions related to your personal finances.

The questions are designed to help expats, planning to retire in Australia, discover if they are financially ready to retire down under. The scorecard provides valuable insight into some of the key steps you need to take to ensure you are in a position to enjoy the retirement you’ve worked hard for.

The scorecard focuses on people who have, or are planning to, move from the UK to Australia and gives you an idea if you are financially able to retire to there.

A significant number of people have taken the quiz. As a result, we have been able to carry out some analysis of the answers so you can now read about some of the key takeaways that you should be aware of if you are planning to retire in Australia.

1. You need an expert adviser to help you manage the financial aspects of your move

When you move to Australia, from a financial perspective, you will face both threats and opportunities as you are settling in a new country.

Some of these will be obvious issues such as a new currency you have to get used to and different prices for certain goods and services.

But, more importantly, there will be a new tax regime and different retirement savings structure for you to understand.

Because of this, if you are moving to another country you would think it was imperative to have an expert on your side. They will be able to help you make the right financial planning decisions to ensure you are maximising the opportunities and mitigating the threats as far as possible.

But nearly 46% of people who took the scorecard do not have a financial adviser.

2. The adviser you work with should be authorised in both the UK and Australia

Of the people who do have an adviser working for them, 27% confirmed that the adviser they are working with is only authorised to give financial advice in either the UK or Australia.

To ensure you get the best possible advice and guidance it’s vital that your financial planner understands the rules in both countries and can advise you on both.

Ideally, they should be authorised in both countries, so you don’t need to use the services of one adviser in the UK and another in Australia.

As well as the obvious cost and inconvenience implications, having an adviser authorised in the UK and Australia will mean they will appreciate the synergy between the two financial and regulatory regimes. This will give you the added benefit that they will understand how best to maximise advantages and mitigate threats.

3. Before you move, you need to be financially prepared

Some of the questions in our scorecard are designed to help you understand how ready you are, from a financial planning perspective, to move to Australia.

It looks at some of the key financial planning areas to assess your preparedness for the move.

There was only one area, understanding the UK State Pension, where more than 50% of people felt that they were fully prepared.

In all the other areas, fewer than half of the people who completed the quiz were fully prepared. Those areas include:

  • Retirement planning
  • Your existing pension arrangements
  • Your investment holdings
  • Estate planning.

Furthermore, there are some decisions you need to make before you leave the UK and as 52% of people who completed the survey are already in Australia, they might have missed out on opportunities already.

The key takeaway is that you need to plan ahead before you get on the plane!

Some key issues the scorecard can help you address

Before you start putting your retirement plan together, you need to have at least an outline idea of your intentions and aspirations in retirement.

Your answers will also help you deal with the emotional aspects of moving from the world of work to the next phase of your life, as well as the financial implications of retirement.

It’s also important to know whether you have accumulated enough money in savings, investments, and pensions to cover the cost of the retirement you have in mind.

So, there are questions about your existing pensions, where they all are, and how much they are currently worth, as well as details of any other assets that you could use to provide additional income and cover large capital expenses.

Finally, there are some questions that will prompt you to consider your legacy and how you want your wealth managed after you pass away.

Get in touch

If you would like to know more about our retirement scorecard and how it can help you plan for your retirement, please get in touch with us.

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. 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 ATO and HMRC legislation, which is subject to change.