An offshore savings plan could offer several headline benefits for someone looking to save money regularly and consistently. Download this regular savings plan guide.
This in-depth guide includes:
- What are the benefits
- Savings plans vs investment platforms
- Tax efficiency of offshore savings plans
- Unit cost averaging
- Currency selection
- Calculating how much you need to save
- What happens if you return home?
- Savings plans and pensions
- Savings plans for your children's future
FAQs
You should consult with a financial adviser before investing in an offshore savings plan. A financial adviser can help you understand the benefits and risks associated with offshore savings plans and can help you determine if such a plan suits your financial situation and goals.
A financial adviser can also help you compare different offshore savings plans and can assist you in choosing a plan that suits your investment objectives, risk tolerance, and time horizon. Additionally, a financial adviser can provide ongoing support and advice to help you stay on track and make any necessary adjustments to your plan over time.
It is important to choose a financial adviser who is licensed and qualified to provide advice on offshore savings plans and who has experience working with clients in similar financial situations. Your adviser should also be transparent about any fees or charges associated with their services and should always work in your best interest.
The cost of an offshore savings plan can vary depending on several factors, including the provider, the specific plan, the investment options available, and any additional fees or charges associated with the plan.
Common fees that may be associated with offshore savings plans include:
- Management fees
- Administration fees
- Surrender fees
- Other fees
The Isle of Man.
At Hoxton, we would advocate the Isle of Man as the preferential offshore jurisdiction. The Isle of Man has a well-regulated financial services industry, and several investor protection measures are in place to help safeguard your investments in an offshore savings plan based in the Isle of Man.
The Isle of Man Financial Services Authority (IoMFSA) is the regulatory body responsible for overseeing the financial services industry on the Isle of Man. The IoMFSA sets and enforces lofty standards of conduct and transparency for financial services providers and works to ensure that investors are treated fairly.
Savings plans based in the Isle of Man are typically issued by life insurance companies. Insurance companies are legally bound to maintain a certain level of solvency and financial strength. This means that the life insurance company should have sufficient funds to meet its obligations to policyholders, even in the event of unexpected losses.
The length of time that you must commit to contributions into an offshore regular savings plan can vary depending on the specific plan and provider that you choose. In general, however, offshore regular savings plans are designed to be long-term investment vehicles, with a minimum recommended investment horizon of five to ten years or more.
All the things you need to know
This guide was created by our qualified investment advisers. Our advisers are some of the best in the world and understand the pains of having assets split all over the world. They have put together this easy-to-follow guide to help and inform all expatriates who may have questions about transferring their UK pensions abroad.
This guide was last updated in May 2023.