Living Abroad Can Complicate Retirement

Working-age and retired U.S. citizens overseas should understand impacts on retirement plans

FORT LAUDERDALE, Fla., June 27, 2022 /PRNewswire/ -- CERTIFIED FINANCIAL PLANNERtm Melinda Kibler has a message for the estimated 9 million U.S. citizens living abroad: Pay attention to your retirement plans.

In a recent article for Palisades Hudson Financial Group LLC (https://www.palisadeshudson.com/2022/05/retiring-to-a-simpler-life-abroad-is-not-so-simple/), Kibler explains that living abroad can complicate saving, investing and spending retirement funds. However, there is no one-size-fits-all checklist for expats. Every country has its own laws, and many have individual tax treaties with the United States. Kibler, who is a senior client service manager at Palisades Hudson, urges Americans abroad to understand their host country's rules, ideally before departure.

"Because the United States imposes a worldwide tax regime, citizens are subject to U.S. tax no matter where they live," Kibler says. "You will also need to pay taxes to your country of residence. In the absence of a tax treaty, you may face double taxation while you live and work abroad."

Americans who work overseas may need to spend a bit of extra time to be sure they understand their retirement savings options, especially if they are employed by a foreign company. Depending on the country and the employer, such workers may face complex income tax situations in the present, and potentially in the future as well.

U.S. citizens considering a move abroad after retirement face another set of complications. In the article, Kibler covers what retirees need to know about receiving Social Security payments outside the United States. She also discusses how expats should handle other U.S.-based retirement accounts.

Despite the complications, Kibler urges readers who are considering living abroad not to let the added complexity hold them back.

"Living outside the United States can be an enriching and rewarding experience," Kibler says. "With some care and expert advice, the complications of saving for retirement or managing your retirement savings shouldn't keep you from pursuing any opportunity that appeals to you."

A financial professional with more than a decade of experience, Kibler holds the IRS Enrolled Agent designation as well as the CFP® credential. She has contributed expert financial advice to major publications including Forbes, Fox Business, The Huffington Post and The Associated Press. In addition to writing regularly for the firm's newsletter, Kibler contributed chapters to Palisades Hudson's two books, "The High Achiever's Guide to Wealth" and "Looking Ahead: Life, Family, Wealth and Business After 55," both of which are available on Amazon.

Contact: Amy Laburda, [email protected]

SOURCE Palisades Hudson Financial Group LLC