Retirement Planning for Expats and Digital Nomads

Employees in one country usually have retirement mapped out for them: a state pension that grows with every year of work, maybe a workplace plan and a clear retirement age. Expats and digital nomads do not. You may work in three countries over twenty years, be paid by clients instead of an employer, leave gaps in several pension records and end up retiring somewhere that is not where you worked.

None of that makes retirement impossible, but it does mean nobody will plan it for you. This guide explains what changes when you live and work across borders, how to take stock of what you have, how to estimate what you will need, and how to build a retirement plan step by step. It builds on our introduction to how to save and invest as an expat.

The short answer

For a retirement plan that works across borders:

1. List every pension and benefit you have built up, in every country.
2. Check the rules of each state pension, especially the minimum number of years needed.
3. Estimate what you will spend and where you will live.
4. Save regularly into long-term investments, in a way that suits your tax situation.
5. Plan for currency, healthcare and tax in the country where you will retire.
6. Review once a year, because rules change.

Why retirement is harder for expats and nomads

• Fragmented pensions. You may have small entitlements in several countries, each with its own rules and minimums.
• Gaps in state pension records. Time abroad can leave years uncounted in your home system.
• No employer plan. If you work for clients, there is no automatic workplace pension.
• Several tax systems. Pensions and withdrawals can be taxed in more than one country.
• Currency risk. Your savings may be in one currency and your retirement costs in another.
• Healthcare gaps. Public healthcare coverage may depend on residence or contribution history.
• Changing rules. Governments change contribution and eligibility rules, sometimes with little notice.

Before you start

Retirement saving works best once the basics are in place. First build an emergency fund so that you never need to cash in long-term savings early, and make sure that you have the right insurance. Then start building long-term wealth.

Step 1: Take stock of everything you have

Make a simple inventory of:

Item	What to note
State pensions	Which countries you contributed to and how many years
Workplace pensions	Employer, plan type, balance, contact details
Personal pensions and retirement accounts	Provider, country, balance, fees
Savings and investments	Where, in which currency, how they are taxed
Property	Value, loans, rental income
Other	Business equity, life insurance, annuities

Many people discover forgotten pension pots from old jobs. Request statements, update your contact details with each provider and keep the records in one place.

Step 2: Estimate your retirement budget

You need two numbers: how much you will spend and where. Start from your current costs, then adjust for where you expect to live. The same lifestyle can cost very different amounts in different countries. Use your cost of living budget as a starting point and consider:

• Housing: rent or ownership, and whether the loan is paid off.
• Healthcare, which often rises with age.
• Travel, including trips back to your home country.
• Visa, residency or tax costs in the country where you retire.
• A margin for inflation, since prices rise over decades.

Do not assume you will spend much less in retirement. A prudent plan includes extra for healthcare and unexpected costs.

Step 3: Understand your state pension rights

State pensions differ a lot, and for expats the details matter. Two examples show why.

Example: the UK State Pension

The UK State Pension depends on your National Insurance record. You need 10 qualifying years to receive any UK State Pension at all, and 35 years for the full amount. If you live abroad and have gaps, you can sometimes pay voluntary contributions to fill them, but the rules have just changed:

• From 6 April 2026, voluntary Class 2 National Insurance contributions are no longer available for periods spent abroad. Only voluntary Class 3 contributions remain, which cost considerably more per qualifying year (check the current weekly rates on GOV.UK before deciding).
• From 2026-27, paying Class 3 from abroad generally requires a stricter record: either 10 years of UK residence or 10 years of UK-paid National Insurance, rather than the previous three years.
• Voluntary contributions paid before April 2026 still count towards your record.
• People who already pay Class 2 from abroad will be contacted by HMRC and can apply to pay Class 3 without meeting the new 10-year test if they apply before 6 April 2027.
• Where you retire also matters. The UK State Pension is increased each year in some countries, such as those in the EEA, Gibraltar and Switzerland, and in countries with a relevant agreement, but it stays frozen at the first-paid rate in others, such as Australia, Canada and New Zealand.

If you are affected, check your National Insurance record on the official UK government site, compare the cost of voluntary contributions with the pension you would gain, and speak to an adviser before committing.

Example: US Social Security

US Social Security retirement benefits generally need 40 credits, roughly 10 years of work covered by the system. The US has totalization agreements with 30 countries (as of 2025). They do two things: they avoid double Social Security contributions by assigning coverage to one country, and they allow you to combine credits from both countries to qualify for benefits you might not otherwise get. They do not cover income tax. You can usually receive US benefits while living abroad, but benefits are taxable income for US citizens, up to 85% in some cases, and the Foreign Earned Income Exclusion does not apply to them because they are US-source.

What to do in your own case

The lesson is general: find out the minimum years you need, whether years abroad count and what you can do to fill gaps, before you move or when you plan a long stay. Check each country where you have worked, since small entitlements may be worth claiming later.

Step 4: Build your own retirement savings

For freelancers and nomads, personal savings do most of the work. Consider the following:

• Choose a fixed percentage of every payment to save for retirement, and increase it when your income grows. Saving a share automatically is better than saving whatever is left.
• Use tax-advantaged accounts where you are eligible. Many countries offer retirement accounts with tax benefits, but eligibility can depend on residence, citizenship and source of income. Check the rules in each country that can tax you.
• Keep your plan simple. Broad, low-cost, diversified investments are easier to manage across borders than a patchwork of complicated products.
• Beware of high-fee “expat” products. Some long-term savings or pension products sold to expats carry high charges and long lock-in periods. Always read the full cost and exit terms before you sign, and ask whether the seller is paid by commission.
• Be careful with pension transfers. Moving a pension to an overseas scheme can have tax and regulatory consequences. In the UK, for example, a pension transferred overseas generally needs to go to a Qualifying Recognised Overseas Pension Scheme (QROPS). Take regulated advice first.

Where to invest

The accounts and funds you can use depend on your residence, your nationality and the rules of the broker or platform. Some brokers restrict clients with foreign addresses, and some funds are tax-inefficient for certain nationalities. Before you choose, check which brokers for expats and non-residents serve your country, and read the basics in our guide on how to save and invest as an expat.

Currency

Your retirement spending will be in a particular currency, but your savings may not be. A fall in the currency you save in can reduce your retirement income when you convert. A common approach is to keep a diversified mix while you are far from retirement and gradually shift towards the currency of your future spending as the date gets closer. For more, see how to protect your savings from currency swings.

Healthcare in retirement

Healthcare is one of the largest and least predictable costs of retirement abroad. Public coverage depends on the country and may require residency, contributions or both, and private insurance becomes more expensive with age. Before you decide where to retire:

• Find out how healthcare works there for foreign residents.
• Compare private options and how premiums change with age. Our guide to international health insurance explains the main types of cover and the questions to ask.
• Check what happens to pre-existing conditions.
• Consider long-term care and how it would be paid for.

Taxes in retirement

Pension income, withdrawals and investment returns can be taxed by the country where you live, the country where the pension is paid and, in some cases, your country of citizenship. Tax treaties may reduce or avoid double taxation, but their terms differ. The most important question is where you will be tax resident when you receive the money. If you are unsure, read about tax residency and consider an international tax adviser before you retire, since decisions about where to live and how to take your income can have large tax effects.

Other things to plan for

• Where you will actually live. Visa or residency rules for retirees differ, and some countries require proof of income or insurance.
• Your home country links. Property, pensions and family may keep you tied to your country.
• Estate planning. Wills and inheritance rules differ by country, and assets in several countries can complicate things. Keep your will, beneficiaries and powers of attorney up to date.
• Leaving a trail of accounts. The more accounts you have, the harder it is for your family to find them. Keep a simple, secure list.
• Longevity. Plan for a long retirement, since running out of money is a bigger risk than leaving some behind.

A rough timeline

Stage	Main focus
Early career (20s–30s)	Build the habit, save a fixed percentage, learn the pension rules where you work
Mid career (40s)	Take stock of all pensions, close gaps, increase savings, review investments and currency
Later career (50s)	Estimate your retirement budget, choose where to retire, plan taxes and healthcare
Near retirement (late 50s–60s)	Confirm pension entitlements, plan income withdrawals, reduce risk, check currency and estate plans
In retirement	Review each year, manage withdrawals, keep records for your heirs

A checklist

1. Build an emergency fund first.
2. List every pension, account and entitlement in every country.
3. Check your state pension records and the minimum years needed.
4. Decide whether voluntary contributions make sense, and check deadlines.
5. Estimate your retirement budget and where you might live.
6. Set a fixed percentage of income for retirement savings.
7. Choose low-cost, diversified investments you can hold from where you live.
8. Plan for currency, healthcare and tax.
9. Update your will and beneficiaries.
10. Review once a year, and speak to a qualified adviser.

Common mistakes to avoid

• Waiting until later. Early years of saving matter most.
• Ignoring state pension rules until it is too late to fill gaps.
• Losing track of old pensions.
• Assuming years abroad count in your home system.
• Buying high-fee expat products without reading the terms.
• Transferring a pension without advice.
• Ignoring tax residency in retirement.
• Keeping everything in one currency that does not match your spending.
• Underestimating healthcare costs.
• Having no will or out-of-date beneficiaries.
• Treating the emergency fund as retirement money.

Frequently asked questions

How much do I need to retire abroad?

It depends on where you live, your lifestyle and your healthcare costs. Estimate your annual spending and plan for a long retirement, then check what your pensions and savings can provide.

Do years abroad count towards my state pension?

Often not, unless you contribute to the system or a social security agreement lets you combine credits. Check the rules for each country where you have worked.

Can I still pay into my home pension while living abroad?

Sometimes, but the rules differ and may be changing. In the UK, for example, voluntary contributions from abroad changed in April 2026 and now generally mean paying the higher Class 3 rate with stricter eligibility.

Will my state pension be paid if I retire abroad?

In many countries yes, but yearly increases may depend on where you live. Some countries freeze the pension at the rate first paid.

Are pensions taxed twice if I retire abroad?

They can be taxed in more than one country, but tax treaties and credits often reduce this. The rules depend on your residency and the countries involved.

Is it safe to move my pension overseas?

It can have tax and regulatory consequences, and some schemes are expensive. Take regulated advice before you transfer anything.

Do I need a financial adviser?

It can help when you have several pensions, assets in more than one country or a move planned. Look for someone with real cross-border experience and ask how they are paid.

Final thoughts

Retirement planning across borders is a project of records, rules and regular saving, not a single decision. Know what you have, check the state pension rules before gaps become permanent, save a fixed share of every payment, keep costs low and plan for currency, healthcare and tax. Review it every year, because the rules keep changing, as the recent UK pension changes show.

This article is educational and not investment, tax, pension or legal advice. Rules change and vary by country. Information reviewed October 7, 2026.