The number of French people living abroad is estimated to be between 2 and 2.5 million*. This international mobility is unevenly distributed across different regions of the world. However, when it comes to calculating one’s retirement, it can be a real headache… In this regard, Novelvy offers five tips to anticipate and prepare for retirement with peace of mind.
1/ Get informed about your status: detached or expatriate?
The « detached » status refers to a situation where an employee is temporarily sent to work abroad by their user, while remaining under the social security system of their home country. On the other hand, an « expatriate » is someone who has permanently moved to another country for work or personal reasons and is no longer covered by the social security system of their home country.
It is important to know your status in order to understand your rights and obligations regarding retirement benefits. For example, as a detached employee, you may be entitled to certain benefits from both your home country and the country where you are working. As an expatriate, you may need to make your own arrangements for retirement savings.
2/ Start planning early
It’s never too early to start planning for retirement. The earlier you start, the more time you have to save and invest for your future. This is especially important for expatriates, as they may not have access to the same retirement benefits as they would in their home country.
3/ Consider your options for retirement savings
As an expatriate, you may not have access to the same retirement plats as you would in your home country. However, there are still options available to help you save for retirement. For example, you can contribute to a private pension plan or invest in a retirement savings account. It is important to research and compare different options to find the best fit for your situation.
4/ Keep track of your social security contributions
If you are a detached employee, it is important to keep track of your social security contributions in both your home country and the country where you are working. This will ensure that you receive the correct benefits when you retire. As an expatriate, you may need to make voluntary contributions to your home country’s social security system in order to maintain your benefits.
5/ Seek professional advice
Navigating the complexities of retirement planning as an expatriate can be overwhelming. That’s why it’s important to seek professional advice from a financial advisor or retirement specialist. They can help you understand your options and create a personalized plan for your retirement.
In terme, while retirement planning can be challenging for expatriates, it is not impossible. By staying informed, starting early, exploring different options, keeping track of contributions, and seeking professional advice, you can prepare for a comfortable and secure retirement. Don’t let the challenges of being an expatriate discourage you from planning for your future. With the right approach, you can retire with peace of mind and enjoy the fruits of your international experience.
