When moving abroad unravels your pension: what every expat needs to know.
Retiring abroad is meant to be a reward, the chance to enjoy the life you’ve worked hard for, somewhere that speaks to your soul. A slower pace. A warmer climate. A fresh chapter.
But behind the scenes, one small move can unravel a lifetime of financial planning.
I recently spoke to an American couple who had relocated to France for retirement. After decades of working in the U.S., they thought they were settled. They’d bought a home, updated their health cover, and were looking forward to a well-earned season of rest and adventure.
Then came the moment she called her pension provider to update her mailing address.
Simple enough, right?
Except that one update triggered a 60-day deadline to move her account. Why? Because the provider could no longer service a non-U.S. resident. And because she didn’t have an alternative lined up — and couldn’t find one in time — her account was forcibly closed.
The company liquidated her investments, withheld taxes, and posted her a physical cheque for the remainder.
All because she changed her address.
It’s one of those moments that’s equal parts heartbreaking and frustrating — and something I’d love to help others avoid with the proper planning.
When it comes to cross-border pensions and retirement accounts, residency matters. Tax law matters. Provider policy matters. And the rules are often stricter than people realise. These aren’t “wait and see” issues. They’re proactive planning issues. Because once the wrong box is ticked, or the correct form isn’t filed, the cascade is hard to stop.
This isn’t just a U.S. issue, either. Similar complications arise when moving between the UK, EU, and South Africa. Certain providers won’t support residents in specific countries. Some tax wrappers lose their efficiency outside of certain jurisdictions. And many pension schemes have strict reporting requirements depending on where you live.
But there’s good news: with the right advice, most of these pitfalls can be avoided.
It starts with one question: Does my financial plan travel as well as I do?
A good cross-border plan considers not only your investment strategy but your residency status, tax position, currency exposure, and long-term lifestyle goals. It makes sure the foundations are in place before you pack the boxes — not after.
And it helps you avoid the costly (and emotional) consequences of getting caught in administrative crossfire.
Because when you’re retiring abroad, peace of mind isn’t just about where you live; it’s about knowing your money still works the way you expect it to.
If you’re living overseas or planning a move, don’t let an address update become a disaster.
Let’s make sure your plan travels with you.
