When you decide to make the big move overseas, there are the usual tasks that people cover off , like arranging for the removalists, looking for a new house and getting the kids enrolled in their new schools. However one issue that is almost always forgotten is superannuation. Usually people only make a cursory glance at their statements and then file it away however considering that it is a vehicle that is going to provide for your retirement you’d think it would attract more attention.
When we sit down with clients and ask them how their superannuation is going, often they can’t tell you, let alone comment what the balance is. When you are living the expatriate life it is the furthest thing from your mind however when you consider what it could be costing you in lost retirement savings people often take notice very quickly.
Assume you are based as an expatriate overseas for 5 years and your accumulated superannuation is $250,000. If you elected the Conservative option in your superannuation, where the expected rate of return is 6.5%*, then you can expect your superannuation to be worth approximately $342,000 after 5 years however if you elected the Growth option, with an expected rate of return of 8.0%, then that portfolio would be worth approximately $367,000 or $25,000 more than the conservative option or 10% more than the initial investment amount.
Even though you are an expatriate it doesn’t make sense ignoring your superannuation whilst you are away. You need to speak to an adviser who has experience in advising expatriates about their super because how an expat manages their super is very different to an Australian resident.
* Source : www.moneysmart.gov.au