More than half of British expats have not increased the amount they save each month, despite two thirds worrying they will not have enough for retirement or are spending too much
The research from expat financial advisers AES International also found, despite more than 60% of respondents saying they feel better off since moving abroad and more than 50% saying they feel financial planning is now more complicated, 68% do not have a financial adviser.
More than a third of respondents also said they spend more now they are an expat on socialising.
Sam Instone, chief executive of AES International, said: “Most people tend to move away from their home country for a combination of reasons, but high on the list is usually an increased salary.
“However, once people find themselves in what can feel like a holiday atmosphere, original aspirations to save can become clouded by the temptations of the here and now. People are also prone to procrastination and this is well demonstrated by their saving habits.
“We are not suggesting everybody needs a financial adviser – in fact far from it, we think there are much simpler and cheaper ways to save than going through an adviser – but we would urge people to consider at least setting up an offshore bank account. In this way, expats will be able to save in a tax efficient manner and, with some discipline, reach the goals they originally had in mind.”
Offshore banks were found to be the most popular savings vehicles among respondents to the survey, with just under half (48%) of expats saying they have one. This compares with 22% who had a long term savings plan and 8% with an offshore bond.
“People could use these summer months, when perhaps they are waiting to join family on holiday, or are otherwise a little less busy, to put their finances in order and begin building the future they want,” added Instone.