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Expat overseas assignments get shorter in Asia and Middle East
| Published: | 13 Nov at 6 PM |
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Tagged: Currency, Property Abroad, UK, Canada, Citizenship, Working Abroad, Pension Transfer, England
According to a major investment bank, the traditional expat life for senior executives abroad is shrinking fast as assignment become shorter and perks are cut.
Investment experts at Coutts Asia and Middle East are having to deal with executive-level clients’ complicated tax planning as assignments diminish from decades to a few years and rewards are slashed. Shorter contracts are now the norm, with countries such as Singapore now preferring to employ domestic staff.
Expats working abroad are increasingly unable to commit to a lifetime plan as in the old days, and are being forced to be more flexible as regards frequent changes in host countries over the length of their careers. Cash requirements, currency movements and tax advice with uncertainty built in are becoming essential tools in the average expat’s personal financial management.
Also needing to be taken into account is a possible move back to the UK after many years, with keeping a financial anchor in the home country the best way. Long-term property ownership in the UK is one way, and holding domestic currency gives security as retirement looms.
Coutts advisors are not convinced the global recovery is as well underway as many politicians would have citizens believe. Interest rates are still alarmingly low, and many private pensions are set to return far less than was originally promised.
Investors looking for inherent growth or even income in fixed rate terms offered by British banks are having a hard time as the Bank of England sticks rigorously to its exceptionally low rate. The BOE governor has said that rates will remain on the floor until the UK’s unemployment rate shrinks below 7 per cent, an improvement expected by 2016.
Investment experts at Coutts Asia and Middle East are having to deal with executive-level clients’ complicated tax planning as assignments diminish from decades to a few years and rewards are slashed. Shorter contracts are now the norm, with countries such as Singapore now preferring to employ domestic staff.
Expats working abroad are increasingly unable to commit to a lifetime plan as in the old days, and are being forced to be more flexible as regards frequent changes in host countries over the length of their careers. Cash requirements, currency movements and tax advice with uncertainty built in are becoming essential tools in the average expat’s personal financial management.
Also needing to be taken into account is a possible move back to the UK after many years, with keeping a financial anchor in the home country the best way. Long-term property ownership in the UK is one way, and holding domestic currency gives security as retirement looms.
Coutts advisors are not convinced the global recovery is as well underway as many politicians would have citizens believe. Interest rates are still alarmingly low, and many private pensions are set to return far less than was originally promised.
Investors looking for inherent growth or even income in fixed rate terms offered by British banks are having a hard time as the Bank of England sticks rigorously to its exceptionally low rate. The BOE governor has said that rates will remain on the floor until the UK’s unemployment rate shrinks below 7 per cent, an improvement expected by 2016.
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