Global mobility is now the norm. Many clients no longer spend their whole lives in one country—they may work in several jurisdictions, retire abroad, or move multiple times during their careers. For financial advisers, this shift creates opportunities to add real value, but also increases complexity, particularly when it comes to pensions.
Cross-border pension planning requires careful navigation. While the rewards are significant, mistakes can be costly. Below are some of the most common pitfalls advisers face, and strategies to avoid them.
Double taxation risks
Perhaps the most obvious challenge is the possibility of double taxation on an individual’s retirement benefits. Without the right structure, a client’s pension income could be taxed both in the country where the pension is held and in the country of residence. This not only reduces retirement income but can also create unnecessary stress for clients who assumed their planning was sufficient. There is also the risk that a pension in the wrong jurisdiction will see higher tax rates being paid unnecessarily.
How to avoid it: Understanding Double Taxation Agreements (DTAs) is vital. Jurisdictions such as Malta, which maintains an extensive network of DTAs, can provide more certainty that income will not be taxed twice. Gibraltar is also another favoured jurisdiction owing to its fixed 2.5% tax rate on retirement income. Pension providers offering flexibility in the pension jurisdiction assist Advisers when mapping out both current and potential future residencies of their clients to ensure that tax efficiency is preserved. International pensions that meet global compliance standards, such as QROPS or international SIPPs, offer advisers more flexibility to keep arrangements valid across borders. Advisers should also stay current with both HMRC rules and local legislation in the jurisdictions where their clients may reside.
Currency volatility
For internationally mobile clients, currency risk is a serious but sometimes overlooked issue. Exchange rate fluctuations can erode income over time. For instance, a retiree drawing a UK-based pension in sterling while living in the eurozone may find their purchasing power dropping significantly if rates move adversely.
How to avoid it: Pension structures that allow multi-currency investment and drawdown can provide stability. Advisers should encourage clients to think about the currency of both their pension assets and their expected expenses in retirement. Members may also wish to hold investments in the currency where they live to mitigate these risks
Lack of flexibility
Retirement planning often assumes stability, yet many expats continue moving even after they retire. Life events such as family circumstances, health, or new opportunities may prompt a change of country. Pension arrangements that are too rigid can create frustration or force costly restructuring.
How to avoid it: Focus on pension solutions that allow flexible access to benefits and offer portability across jurisdictions. This ensures clients can adapt without being penalised by their financial structures.
The adviser’s role in adding value
Cross-border pension planning is rarely straightforward. It requires foresight, knowledge of multiple jurisdictions, and the ability to align financial arrangements with a client’s long-term life goals. Advisers who identify these pitfalls early and guide clients toward robust, flexible solutions not only safeguard wealth but also provide peace of mind.
In today’s interconnected world, this type of advice is no longer niche—it’s increasingly mainstream. By addressing tax exposure, compliance, currency, and flexibility from the outset, advisers can turn complexity into clarity, proving their value as trusted partners for globally mobile clients.
How Momentum supports advisers
For advisers managing the complexities of cross-border retirement planning, having access to pension structures that are transparent, well-governed, and internationally recognised is essential. We provide solutions across leading jurisdictions, including Malta, Gibraltar, and the Isle of Man, designed to meet global compliance standards while offering flexibility and clarity. By combining technical expertise with a focus on long-term sustainability, Momentum helps advisers deliver pension outcomes that align with clients’ increasingly international lives.
The idea of a fixed retirement age is changing. Increasingly, people are choosing—or needing—to work well into their later years. For some, this decision is financial. For others, it is about lifestyle, identity, or even health, with work providing structure and purpose. Whatever the reason, the traditional model of stopping work at around 65 is being replaced by a more flexible reality.
For advisers, this shift brings both challenges and opportunities. Retirement planning used to assume a clear transition from accumulation to decumulation. Now, many clients expect to contribute to pensions for longer, access benefits gradually, or combine part-time work with partial drawdown. This creates new dynamics in areas such as contribution strategies, tax efficiency, and cashflow modelling.
The international dimension adds further complexity. Mobile professionals who have worked in several jurisdictions often face overlapping rules, and expats may be drawing income in one country while continuing to work in another. Pension structures need to accommodate these realities, not only from a compliance perspective but also in terms of practical flexibility.
Advisers are responding by broadening their conversations with clients. Instead of focusing solely on when retirement will begin, they are discussing how it might evolve. Some clients aim to phase out of full-time employment, reducing hours gradually. Others want the option to draw a portion of their pension while still working. These preferences highlight the growing importance of pensions that can adapt to later-life transitions.
Industry solutions vary. International centres such as Malta, Gibraltar, and the Isle of Man continue to play a role, offering regulated frameworks that can support portability and flexible access. For clients with cross-border lives, choosing the right jurisdiction can make a tangible difference in aligning extended careers with long-term goals.
For advisers, guiding clients who work beyond the standard retirement age is not just about numbers—it is about recognising broader life patterns. Retirement is no longer a single event but a series of stages, and pension planning has to reflect that. Advisers who can explain these shifts clearly, and help clients consider the implications, will stand out as trusted partners in an increasingly fluid retirement landscape.
As longevity rises and working lives stretch, the adviser’s role becomes even more central: not just in helping clients accumulate wealth, but in making sure their pension structures can support a more flexible and international future.
We support advisers in meeting the needs of clients whose careers and retirements no longer fit traditional patterns. Our flexible pension schemes and experience in cross-border pensions and commitment to transparent governance allows advisers to focus on guiding clients with confidence, wherever their later-life journey takes them.
Retirement planning has always carried an element of uncertainty, but for clients living internationally, one risk has become increasingly important: currency fluctuations. Exchange rates change constantly and while short-term shifts may appear minor, over the course of a 20- or 30-year retirement they can significantly affect the real value of income.
When someone draws a pension in one currency but spends in another, they are immediately exposed to this volatility. A familiar example is a UK national who receives retirement income in pounds but lives in Spain, where their daily costs are in euro. If the sterling weakens, their pension buys less, often without warning. This is not confined to Europe. Australians living in Asia, Canadians in Portugal, or South Africans in the Middle East can all face the same issue when income and expenses are denominated differently.
The long-term effect of these shifts can be considerable. Purchasing power may erode gradually, making it harder to maintain a consistent standard of living. Budgeting becomes more challenging as exchange rate swings introduce an extra layer of uncertainty. For those drawing down investments overseas, the timing of conversions can also affect overall returns. Clients often expect retirement to bring stability, yet currency fluctuations can add an unexpected and sometimes unwelcome variable.
The international pensions industry has developed a range of responses to this challenge. One is the increasing use of multi-currency functionality, where certain international pensions allow investments to be held in different currencies aligned to a clients needs, and income to be paid in a suitable currency. This can reduce risk and reliance on constant conversions. Another approach is the availability of funds and financial instruments in a range of currencies, designed to soften the impact of exchange rate movements, though they carry their own considerations. A further factor is jurisdictional choice: some international pension centres offer greater flexibility in the currencies they support, which can make long-term planning much easier.
None of these approaches is a universal solution, but together they demonstrate a wider flexibility within the international pensions industry to meet the needs of clients exposed or who wish to take advantage of currency fluctuations. For advisers, part of the role is helping clients appreciate that exchange rates can have just as much impact on their lifestyle as tax treatment or investment performance.
As more people move abroad for retirement, this topic will only become more significant. While the right solution will vary by individual, acknowledging the reality of currency risk—and making it part of the broader retirement conversation—is an important step in ensuring clients are prepared for the financial realities of life overseas.
We understand the challenges currency movements create for internationally mobile clients. Our pension structures across multiple jurisdictions are designed to offer flexibility in currency options, helping advisers frame strategies that reflect clients’ lifestyles and long-term goals. By combining robust governance and international expertise, we provide a platform that supports advisers in addressing currency risk as part of holistic retirement planning.
Artificial Intelligence (AI) is starting to influence how schemes and advisers operate, interact with members, and manage investments. At Momentum Pensions, we recognise the vast opportunities AI brings – but also the importance of adopting it in a way that safeguards the interests of members and upholds the principles of responsible pensions management.
AI is not without its challenges. Issues such as data governance, cyber security, regulatory compliance, and ethical application demand careful attention.
In pensions, the responsibility to act in members’ best interests is a long-term commitment. Any technology, no matter how sophisticated, must operate within robust governance frameworks. At Momentum Pensions, we see AI as a way to complement – not replace – human judgement. Trustees and administrators must remain actively engaged and accountable for the steps that impact retirement outcomes. With AI relying heavily on data, protecting personal information is paramount. Cybersecurity should be a core consideration from the outset, not a secondary measure.
The UK Treasury Committee’s recent inquiry into AI in financial services, including pensions, highlights both the excitement around its potential and the importance of oversight. The focus from policymakers on transparency, accountability, and consumer protection is well placed. As regulation continues to evolve, the industry must work together to ensure AI strengthens pension provision rather than creating unforeseen risks.
When applied thoughtfully, AI can deliver measurable improvements to the pensions experience. Recent insights from the Pensions and Lifetime Savings Association (PLSA) reveal that AI is already improving key areas, including:
Industry experts anticipate AI becoming a mainstream part of pension fund management by the mid-2030s, transforming the way schemes are run and experienced.
We are actively exploring how AI can be used to enhance the way we serve advisers and members. This includes investing in technology that simplifies processes, improves engagement, and delivers secure, user-friendly digital solutions.
Our Managing Director, Susan Brooks, has stated: “Our significant investment in technology infrastructure allows us to scale and innovate effectively. At Momentum Pensions, responsible innovation is key – we implement cutting-edge technology, but always with robust governance, data security and a client-first approach at our core.”
We believe the future of AI in pensions will be defined not just by what it can do, but by how it is used. At Momentum Pensions, we will continue to lead with integrity – embracing innovation while maintaining our commitment to security, transparency, and long-term trust.
