Thu11152018

Last update12:12:22 PM

Back You are here: Home Lifestyle Life Planning for Retirement Income

Planning for Retirement Income

Quest Bulgaria investigates considerations for how to make the most of planning for retirement income.With already a million Brits taking their state pension overseas and many Bulgarian property buyers considering retirement,

A large number of purchasers are choosing Bulgaria because of the financial benefits it provides. Certainly, in the UK it is increasingly difficult to live on a UK state pension but it is easy in Bulgaria.

Planning for retirement income tips

Buying a Bulgarian property can release the equity from their UK home, which can be placed in the bank and provide interest to top up the pension as well.

What is the best way to ensure you don't run into a financial strain for the rest of the days of your lfe?

First things first. Those considering retiring to Bulgaria should take professional advice on Bulgarian taxation and property before making the move. In this way, sound advice and up to date information will be obtained so that you can avoid any nasty surprises occurring.

One thing to be aware of is that if you are resident in Bulgaria you are liable for tax on worldwide income. This means that your UK pension must be declared in Bulgaria. The double taxation treaty between Bulgaria and UK means that you will not pay double tax.

It is wise to contact the Dept of Social Security quite some time before you move in order for required administrative procedures.

You'll also need to open a bank account in Bulgaria for your day to day banking and get your pension paid into this account. One of the most cost effective ways to do this and avoid high UK bank charges is to talk to a currency specialise, such as Currencies Direct, with whom you can make regular payment from the UK to Bulgaria at little or no charge.

Those who have a dream of retiring to Bulgaria should put finances and planning for retirement income at the top of the list. Often, buyers are carried away with cheap property, long sunny months and don't really look at the costs. At the end of the day, not budgeting properly for retirement overseas can end in people not enjoying their life.

Another aspect is to budget realistically for a property to buy before even looking at booking viewing trips - and keeping this budget strictly in control. Again, it is worth discussing property purchase with a currency broker so that if the pound to euro rate fluctuates you do not lose out.

Once you have moved, then during the months and years to come the day to day cost of living in Bulgaria is increasingly important. To help budget against this it is wise to make a yearly plan of all those outgoing costs which you cannot avoid (house insurance, car insurance, repairs, maintenance, etc) and allow a good percentage increase.

With this yearly budget it is also common sense to put in an emergency amount of cash to cover any unexpected costs.

Thinking about these financial issues and future planning for retirement income, although it is dull, will allow you to avoid the common mistakes when retiring to Bulgaria and enable you to enjoy a good life which you have worked hard for.