You may have a very idealistic vision of retirement - doing all of the things that you never seem to have time to do now. But how do you pursue that vision? The State pension may be around when you retire, but the benefit that you get from it may not provide enough income for your retirement years. Or the State has stolen it to fund other things – that’s happening right now.

To make matters worse, few employers today offer a traditional company pension plan that guarantees you a specific income at retirement. On top of that, people are living longer and must find ways to fund those additional years of retirement. Such eye-opening facts mean that today, sound retirement planning is critical.

But there's good news: retirement planning offshore is not difficult. Here are some basic steps to get you started.

Determine your retirement income needs

It's common to discuss desired annual retirement income as a percentage of your current income. Depending on whom you're talking to, that percentage could be anywhere from 60% to 90%, or even more. The appeal of this approach lies in its simplicity. The problem, however, is that it doesn't account for your specific situation. To determine your specific needs, you should estimate your annual retirement expenses.

Use your current expenses as a starting point, but note that your expenses may change dramatically by the time you retire. If you're nearing retirement, the gap between your current expenses and your retirement expenses may be small. If retirement is many years away, the gap may be significant, and projecting your future expenses may be more difficult.

Remember to take inflation into account. The average annual rate of inflation over the past 20 years has been approximately 2%. Keep in mind that your annual expenses may fluctuate throughout retirement. For instance, if you own a home and are paying a mortgage, your expenses will drop if the mortgage is paid off by the time you retire. Other expenses, such as health-related expenses, may increase in your later retirement years. A realistic estimate of your expenses will tell you about how much yearly income you'll need to live comfortably.

Calculate the gap

Once you have estimated your retirement income needs, take stock of your estimated future assets and income. These may come from a retirement plan at work, a part-time job, and other sources. If estimates show that your future assets and income will fall short of what you need, the rest will have to come from additional personal retirement savings.

Figure out how much you'll need to save

By the time you retire, you'll need a nest egg that will provide you with enough income to fill the gap left by your other income sources. But exactly how much is enough? The following questions may help you find the answer:

At what age do you plan to retire? The younger you retire, the longer your retirement will be, and the more money you'll need to carry you through it. What is your life expectancy? The longer you live, the more years of retirement you'll have to fund. What rate of growth can you expect from your savings now and during retirement? Be conservative when projecting rates of return. Do you expect to dip into your principal capital? If so, you may deplete your savings faster than if you just live off investment earnings. Build in a cushion to guard against these risks.

Build your retirement fund: Save, save, save

When you know roughly how much money you'll need, your next goal is to save that amount. First, you'll have to map out a savings plan that works for you. Assume a conservative rate of return (e.g., 8% maximum), and then determine approximately how much you'll need to save every year between now and your retirement to reach your goal.

The next step is to put your savings plan into action. It's never too early to get started (ideally, begin saving in your 20s). To the extent possible, you may want to arrange to have certain amounts taken directly from your paycheck and automatically invested in accounts of your choice. This arrangement reduces the risk of impulsive or unwise spending that will threaten your savings plan - out of sight, out of mind. If possible, save more than you think you'll need to provide a cushion.

Understand your investment options

You need to understand the types of investments that are available, and decide which ones are right for you. If you don't have the time, energy, or inclination to do this yourself, hire a financial professional. He or she will explain the options that are available to you, and will assist you in selecting investments that are appropriate for your goals, risk tolerance, and time horizon. Note that many investments may involve the risk of loss of principal.

Use the right savings tools

The following tools are available if you choose to plan by investing offshore:

Regular Savings Plan

Choose a regular savings plan that has no Initial Period OR a very limited one. With one of these - there are two or three available - you can be sure that the traditional huge up-front commission payments of the old-fashioned product providers are not being paid, leaving you with more money in your pension pot.

Lump-Sum Platforms

As an expat, you stand a good chance of building up capital in the bank. But the bank is giving you nothing or very little for your deposit: you might not even cover inflation. Get into the markets with this money - but again, choose a low-cost platform. A good Adviser will tell you which ones these are.

And then, it's the usual regime:

• Diversify
• Don't try to time the markets
• Stay invested
• Keep both fear and greed under control so as to make rational decisions.

We will help you with ALL of this – calculating the need; what you need to invest to reach your target at the chosen age; and a whole host of other questions.

Get in touch today.