Regular Saving Plans

Many expats move abroad for the opportunity of higher earnings and greater tax savings. This should, ideally, create a larger surplus income. Unfortunately many then get used to this surplus income and forget to save. They instead reach a new, nicer, more lavish lifestyle but they do not put savings away for the future. The reality is that many expats do not receive pensions or have entitlement to state pensions when working abroad. At least part of this surplus income for these clients should be set aside into a pension (surplus), but this is easily overlooked. For others who do receive a pension from their employer, or have other provisions for their retirement, this surplus income can still be put to work.

Its a common fallacy that putting savings in the bank is the safest place. Unfortunately, with increasing rates of inflation and the lowest interest rates in several decades, clients who leave their savings in the bank are guaranteed to lose money over time. Setting up a disciplined, sustainable and structured savings plan is a great way to affordably accumulate wealth whilst benefitting from compound interest as shown in our illustration below. Life is full of routines – make saving one of them. Let the impact of time work to your advantage.