In the Telegraph’s Expat Money section on 21st June 2015 there was an article regarding how some British expats are being charged very high fees for financial advice that are not always clearly explained. It’s important that you fully understand what we would call the Total Expense Ratio (TER) and how it affects the performance of your pension / investment.
The TER is all the costs associated with pension / investment moves turned into a percentage of the total fund value. This will tell you how much your investment needs to grow by each year before it ‘breaks even’. An easy way of protecting yourself is to only use fee-based cross-border financial advisory firms, who have a clear and easy to understand tariff of charges. We strongly recommend that you are presented with a fee agreement from your advisor that clearly shows what their tariff is and how much you are being charged for the advice you are receiving.
If there are no fees for the pension, investment or underlying investment fund, it is likely that commission is being paid to the adviser, therefore it’s very important you understand how you’re effectively repaying this commission through your pension / investment charges.
It is also important to be certain that the financial advice you have received has taken account of your circumstances, future plans and life goals. Do the advisers understand what you are hoping to achieve? Do they understand every part of your move abroad? Does their plan make sense to you both now, in the UK and when you are resident in your new country?
Advisers with cross-border permissions will also be able to help you with both ‘ends’ of your move and will have a thorough understanding not only of your UK pensions and investments, but also of the rules and likely taxation implications of your move abroad.
If you are concerned about your pensions or investments, moving abroad or are already resident in a foreign country then get in touch with us via the below form and we will be delighted to talk through how we can help.Announcements, Finance for Emigration, Expatriate