Expats can save without using an IFA: Adviser

Sam Instone, chief executive of AES International, said although many UK expats were failing to save and therefore had money worries, not all of them would need to have tailored independent advice – just some good pointers to help them kick-start the savings habit.

Mr Instone said: “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 can save in a tax-efficient manner and, with some discipline, reach the goals they originally had in mind.”

John Viney, chief operating officer, AES International, said: “The basic foundation of financial planning for an expat is a good bank account.

“After that, they can do many things on an execution-only basis, using an organisation such as Hargreaves Lansdown, through which they can also learn without the cost of going through an IFA. There is value in financial advice, but only when they need it.

“If people do not need financial advice they should not use us. We believe in being adult about this.”

This came as the firm carried out research that showed 52 per cent of UK expats responding to the survey had not increased the amount they saved each month, despite 67 per cent worrying they will not have enough for retirement or were spending too much.

Also, while 50 per cent feel financial planning is now more complicated, 68 per cent do not have a financial adviser.

Adviser view:

Trystan Lewis, chartered financial planner at Cheshire-based Griffin Wealth Management, said: “In some cases, expats can have complex tax planning requirements, and ideally should seek financial advice – even if it is to find they do not need advice. Without seeking advice you are not informed, and you can miss opportunities to manage your affairs more tax-efficiently.”