Resolving expat money worries

Nobody is totally immune to the many monetary issues faced while in employment – not even well paid expats.

Expat professionals who work abroad have to face some money-related worries, despite receiving higher pay and better benefits from working overseas.  Having an international job, after all, does not excuse anyone from the global economic crisis. With the price of everything rising, from the cost of living to inflation rates, 2011 is proving to be a tough year for just about everybody.

Expat workers have as least as many concerns about money as their onshore peers, but there are ways that those with international jobs can resolve, if not avoid, these main money worries.

Worry 1: Retiring Abroad
More than two-thirds of those surveyed by Shelter Offshore revealed that among their top worries in regards to working abroad is retirement. This issue encompasses the financial means to pay for medical and healthcare bills later in life and having enough money to keep them going after retiring abroad.

Although those with international jobs are provided with pensions, this does not guarantee them a comfortable life. In fact, pensions have received very negative press recently, especially in the UK, due to a number of mis-selling scandals as well as poor annuity rates.

To address this issue though, expats should try to explore several options and/or investments to prepare for retirement. They can also try to check on QROPS, or the Qualifying Recognised Overseas Pension Schemes, to ensure themselves of pensions that they can truly benefit from.

Worry 2: Rising Cost of Living
Many of those with expat jobs worry of the cost of living abroad that continues to rise year after year. From food to clothing to fuel, these increasingly expensive commodities add to the financial burden of people working in international jobs. To assuage the situation, expatriates can start buying in local markets and using the metro instead of a car. Buying from off-season sales will also stretch your money further.

Worry 3: Paying for Childrens’ Education
Education in many schools abroad is expensive. Thus, parents who work abroad often worry about paying for their children’s school fees. One of the options to solve this issue is to consider home schooling. Having the child stay at home for school with a family member is a way to help reduce your expenses.

Worry 4: High Taxes for Expats
Although there are countries that offer great tax benefits to those with expat jobs, a number of them do charge taxes at a very high rate. To deal with this, expats should start with getting an assessment of their income and taxes and see if there is any legal way to mitigate the financial obligation. Doing a research on local tax laws can also help shed light for a lower tax solution.

Worry 5: Job Insecurity for Expatriates
Among the top things that cause anxiety for those with international jobs is the security of and stability of their jobs. Although there is no way to avoid job insecurity, one can prepare for the worst through insurance and other investments. A financial back-up plan, like savings, would be very helpful if anything was to happen to your job while working abroad.

International jobs offer a number of financial benefits and advantages, but there are still a number of risks to face. But with the right knowledge and preparation you can protect your hard-earned money while living abroad.

Expat-Daily.com » Career Advice