Financial traps lurk for the unwary who retire abroad

"People considering retiring abroad should seek financial advice years in advance to maximise their retirement and tax planning.

"Tax on pensions varies enormously. 'Tax free' lump sums may be taxable in France, Spain may have higher rates of tax on drawdown income and Portugal may offer retirees the possibility of withdrawing their pension completely tax free.

"People need to plan for this in advance so they can take advantage of the most favourable tax treatment rather than leaving it until they move to another country and finding out too late that they could have done things differently."