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Our retirement plan! What are we missing?

Our retirement plan! What are we missing?

Old Feb 7th 2020, 8:26 pm
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Default Our retirement plan! What are we missing?

Hi all, There's such amazing advice on this site so TIA!
Consider ourselves quite small-fry in the expat world but trying to get a handle on the financial pitfalls we may not have considered.....

Husband and I are 5 years from retirement and both dual nationality UK/USA living on US East Coast. We have about £200k in old pension funds in UK from various workplaces and about 2/3rds of our UK state pension paid. In US we will have about $200k in 401k and 20 years of Social security payments when we retire. The DREAM is to have a little condo down south here and a little cottage in UK and spend 6 months in each place.
BUT....in retirement if we draw down $10-20k here from 401k and £10-20k in UK from pension funds each year will we get hammered with punitive tax costs trying to have it all - in a small way!

We also anticipate moving our main residence to UK over course of retirement to be near family and benefit from NHS protections - if we sell up in US and move funds out of country then does Uncle Sam take a chunk then and/or forever?? Someone said a move home from Florida as main residence would protect our exposure to future taxation better than a move home from New York state?

We've been advised to get a QROP or SIPP to hold UK pension investments, not sure how they differ and what would suit this situation....

Thanks for any top tips or if anyone has been through same planning

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Old Feb 8th 2020, 6:41 pm
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Default Re: Our retirement plan! What are we missing?

Don’t mean to pry into your financial state and future plans, but - do you envisage buying the FL and the UK pieds-a-terre in cash, or will you need to finance them? I do believe that becoming tax residents of FL will stand you in good stead, compared to being NY residents.

Sorry, but I don’t really have any practical answers to most of your questions. I did something remarkably similar to you in 2015 - bought a flat in Norfolk, retained my home in New York, and now I divide my time between the two. I actually haven’t yet done anything in relation to US retirement savings, since I’m still under the age of 70 so haven’t yet had to take RMD.
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Old Feb 8th 2020, 7:38 pm
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Default Re: Our retirement plan! What are we missing?

Firstly, please be very careful about financial advisors selling QROPS. There are some absolute sharks out there peddling misinformation and lies. If you are going to be UK resident I sincerely doubt there is any benefit to you by pulling pension funds out of the UK, but in any case pension funds in UK are protected on several levels, and even if there is some marginal benefit to pulling them out of the UK, I would strongly argue that the UK's protective blanket that wraps your pensions has some very real value that is worth holding on to.
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I don't have much to say about your plans, except to say it us doable, and easier if you exit the US before you retire and get into the Social Security and Medicare issues, and later have to disengage (there was another thread on this topics very recently).

But I would say that you may have issues with health insurance if, as a British resident, you try to spend over 5 months in the US, unless you are prepared to pay for annual coverage in the US that you won't need for most of the time. In other words, travel insurance for your time in the US will be expensive (because typical travelers spend less than a month in the US), and at some point (due to age and/or medical issues) travel insurance to stay in your US property may become exorbitant or unavailable.

Last edited by Pulaski; Feb 8th 2020 at 7:46 pm.
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Old Feb 8th 2020, 8:18 pm
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Default Re: Our retirement plan! What are we missing?

Medicare should be fine, though, and the premium for Pt. B is currently about $130 a month. It’s certainly common for people who retire to Mexico to keep up their Medicare. It’s what I’ve been doing for four years.
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