While life in Asia is an incredible experience, expatriates do face certain challenges when it comes to financial planning. We explore the most common concerns of expats living in Asia and suggest how to tackle them.
Financial planning for expatriates in Asia
Living abroad is a privilege that brings incalculable benefits, but it does also pose certain financial challenges. Expatriates who choose to emigrate often leave behind financial benefits such as state pensions, free healthcare, and subsidised university fees.
When you move abroad it is important to put a strategy in place to plug these financial planning gaps and protect your family against all financial eventualities. The good news is that affordable solutions exist.
In this article, we outline the five most common financial concerns for expatriates. Once you have these five bases covered, you can enjoy all the advantages of life in Asia worry-free.
The five most common financial concerns for expatriates in Asia
How can I ensure I am saving enough for retirement?
Retirement savings should be a priority for everyone. Saving and investing regularly over the long term is the only way to ensure that you maintain your lifestyle when you eventually stop working.
If your employer in Asia doesn’t have a work scheme, it’s time to put a private pension in place. Indeed, even with a work scheme, you may want to take advantage of the investment products available to you to build additional wealth for retirement.
The best way to assess your situation and highlight a potential shortfall in retirement is to make an appointment with a financial adviser. Here at Infinity, our advisers can crunch the numbers with our cash flow forecasting software. The results will give you an accurate picture of where you are now and flag up possible future issues.
If the forecast highlights a future shortfall based on your current situation, your lifestyle, and your retirement expectations, this can be addressed with a bespoke financial plan to make sure you won’t run out of money when you stop working.
How will I be able to pay my child’s university fees?
Parents the world over worry about how they are going to put their children through university. And with the cost of a degree high and rising, it is a valid concern. Higher education has become one of life’s biggest expenditures.
But many parents deem the cost worth it and there are clear labour-market advantages of a tertiary education. According to the OECD, those with a degree earn on average approximately 50% more than those who are educated to secondary level.
By planning ahead, you can spread the burden of university fees over a number of years and benefit from compound interest on your savings. Our advisers have a wealth of experience working with expatriates to create bespoke education fee plans that take into account currency considerations and possible future relocation. The sooner you start saving, the better so contact us now to give your child the best possible start in life.
How will I cover medical costs in the event of an accident or illness?
This is a legitimate worry for expatriates, especially if they no longer have the safety net of free healthcare from their home country. The solution is a comprehensive medical insurance policy.
In our view, medical insurance is non-negotiable for all expatriates living abroad. If you don’t have healthcare coverage through your job, or if you deem it to be insufficient, this is something you need to arrange as a priority.
There are hundreds of different policies on the market, and it can be confusing to decide which is best for you and your family. Infinity financial advisers are experts at finding policies adapted to the needs of expatriates. As an independent financial services provider, we are not tied to one company and can compare different products to find the one best suited to your circumstances.
How will my family maintain their standard of living if I die?
Losing a family breadwinner when you are far from home without family support is tough. It’s even tougher if there is nothing to replace the lost income. Life insurance will give you peace of mind that in the event of your death, your family will have enough money to cover their living costs while they decide what to do.
It’s easy to make mistakes with life insurance so it’s worth consulting a professional to check that you have sufficient coverage.
How can I ensure my savings are working as hard as possible for me?
If your savings are held as bank deposits then this is probably a justified concern, especially with inflation rates rising rapidly. Your return must outpace inflation for your wealth to grow.
Many expats benefit from high disposable income and the perfect opportunity to save and invest for the future. It would be a shame to waste this.
Infinity provides expats in Asia with advice on saving and investment strategies to help them build wealth in the most effective way possible.
Is it time for you to book a consultation with one of our advisers? If you’re hesitating because you’re not sure what it entails, take a look at this video, in which Adon Beddoes, one of our consultants, explains exactly what happens in an initial financial planning meeting.
Whatever your expatriate financial concerns, we’ve got your back. Book a call with us today and let us help reduce your stress levels so you can make the most of your life in Asia.
A leading provider of expat financial services and wealth management services across Asia.