70% of expats do not understand pension freedoms

Expat employee

Almost three-quarters (70%) of British expats do not understand the new pension flexibilities, according to research by financial advice firm AES International.

The survey of 170 expatriates found that of the 30% who do understand the pension freedoms, just 6% know how it will affect how they plan to fund their retirement.

Additionally, of the 30% who do understand the rules, 70% thought they were a good idea.

The research also found that 30% of expats had received an unsolicited call offering financial advice on the pension freedoms; 45% described the calls as “suspicious”.

James McLeod, head of pensions at AES International, said: “Our survey suggests there are a worryingly high number of British expatriates who are in the dark about the recent pension changes.

“While the new pension flexibility rules were covered widely by the UK media, unless an expatriate specifically seeks out this information, they are likely not to be well-enough informed to take a properly thought-through decision.”