Research urges UK Intermediaries to promote offshore savings accounts
Intermediaries should be recommending offshore savings accounts to their expatriate clients as most fail to obtain these types of products when moving abroad, according to research by Alliance & Leicester.
The research showed nearly a third of expatriates do not increase their savings rate when they move abroad, even though their living costs are reduced.
Men were the more likely culprits of failing to save than women, with a third saying they have not managed to increase their savings compared with a quarter of women. One in six male expatriates did not save any money, compared with just one in 10 women.
Age also played a factor. Nearly half of expatriates who were in their late 40s and early 50s claim that since living abroad they have not been able to increase the amount they save, and a further 25% did not save at all. Only a quarter of expatriates under 45 have not been able to put more money away now they are living abroad, and only one in 10 say they did not save at all.
Location was also a factor in saving. Expatriates based in the Costa del Sol found it more difficult to keep money in their bank account. However, 80% of those based in Germany held onto their cash and increased the amount they set aside.
Simon Hull, managing director of Alliance & Leicester International, said: "This research shows that, while many expatriates find a lower cost of living, beneficial taxation and increased income by living abroad, this does not necessarily mean that they can increase the amount of money they put away for their future - in fact a significant number struggle.
"The good news, however, is that this is curable problem, and intermediaries have a crucial role to play in persuading expatriates to curb their extravagance and save for their future."
Head of UK intermediary distribution
‘Promising lead’ or ‘Back to the lab’?
PA360 2019 revisited
Complaints triple in past year
Our weekly heads-up for advisers