The majority of internationally mobile professionals are not clued up on their financial situation, according to research by Skybound Wealth.
The firm’s inaugural study of internationally-based professionals – The Retirement Reality Check – found that while 84% of respondents hold pensions or investments in more than one country, only 35% are clear on how their country of residence affects their pension, tax and investment position.
Skybound dubbed this planning challenge facing a generation of professionals who have accumulated assets across multiple jurisdictions as the ‘cross-border clarity gap’.
A lack of confidence has led to more than half of those canvassed postponing a financial decision because of uncertainty around cross-border tax, residency or regulation.
As a result, many respondents feel underprepared for retirement. Only one in six said they feel fully confident their plan will deliver the retirement they want while 47% have only a rough idea of the income they will need, and 38% either have no formal retirement plan or have not reviewed one in more than three years.
Greater clarity was cited as the catalyst needed to boost confidence. Over a third wanted a clearer overall plan (35%), while 31% said knowing their retirement number would help and 28% identified better tax planning (28%).
Mike Coady, CEO of Skybound Wealth Management Group, said: “The people in this research are capable, successful and financially engaged. The gap isn’t effort – it’s visibility.
“When your pension sits in one country, your home in another and your tax residence somewhere else again, no single adviser, employer or provider ever shows you the whole picture. Closing that gap is the most valuable thing our industry can do for internationally mobile clients.”
Carla Smart, group head of pensions at Skybound Wealth, added: “The most common thing we see is fragmentation. People arrive with pensions in two or three countries and no single view of what they hold.
“Decisions then get made at the wrong moment – a transfer that would have been right six months later, or a guarantee given up that nobody realised was there. Once someone can see the whole picture, the right decisions become far easier.”
