Retired expats who are no longer earning an income are often keen to move to countries where the cost of living is lower and where they can enjoy a better quality of life for less money. No matter where you are living abroad, here are some money saving ideas that can help stretch your retired funds further.
Money saving tips for expat retirees
Sign up to discount services
Just because you are living on a budget, shouldn’t mean that you have to lose out on what’s going on around you. The first thing to do is sign up to an app like Groupon, which covers cities from all around the world. Here you will find savings on virtually everything from tickets to the local opera to meals out in your local town. Offers on Groupon are not merely limited to experiences, you can also find many items from home décor to kitchen implements selling for a discount on Groupon.
Live like the locals do
You will hear this advice over and over again – because it’s probably the most important piece of advice you will ever hear with regard to living abroad. Find out where the locals are buying their groceries and where they are eating out. Locals are always aware of where good value for money can be found. So don’t make the mistake of shopping or dining in a “tourist trap”.
Buy a water filter
If you are living in a country where the water is drinkable but doesn’t taste pleasant, consider buying a water filter instead of opting for store-bought water. While store-bought water might seem relatively cheap – you will be amazed how much it takes out of your annual budget.
Read the local classifieds
Yes, a lot of information is online these days – but if you are looking for bargains and discounts in your town, look at supermarket notice boards and newspaper classifieds for discounts. You might even find something going free!
Visit comparison websites
If you are retiring in the UK or in other European destinations you can research the best suppliers for your utility services online. Popular websites include uSwitch and Go Compare.
Access your South African retirement annuity abroad
Many South Africans living abroad are unaware that their relocation abroad enables them to access certain financial investments like retirement funds a lot earlier than they would be able to if they were living in South Africa. This is possible due to a change in tax legislation that came into effect in 2008.
Cashing in your retirement annuity and moving your funds abroad affords you with many financial opportunities:
- If you are retiring overseas, withdrawing your retirement annuity means you can utilise it in the currency of your new home, which simplifies life as it allows for the better matching of assets to liabilities when calculated in the same currency.
- You can withdraw all your funds without incurring any early withdrawal product penalties as long as you pay the withdrawals tax liability
- You can use your retirement annuity funds for any purpose – whether you wish to top up your existing retirement funds abroad or invest in a new home.
- Withdrawing your funds helps protect them from the volatile effects of the rand – and if you withdraw your funds at a time when the rand is trading strongly against your new currency, you will benefit even further.
At FinGlobal we have helped thousands of South Africans living abroad cash in their retirement annuities even before the age of 55, so they can make the most of their retirement abroad. To find out more about how we can assist you with this process, contact us today.