Retirement Planning for High-Net-Worth Individuals: A Cross-Border Strategy for Expats

Retirement planning is particularly complex for HNW expats due to cross-border asset structuring, taxation, evolving regulatory requirements, automatic exchange of information regimes (such as CRS and FATCA), and jurisdiction-specific anti-avoidance rules that may affect residency, domicile, or temporary non-residence status.

This article will help address these challenges by outlining the key considerations for effective retirement planning for high–net–worth individuals, with a focus on coordinating investment strategy, tax positioning, mobility planning, and estate structuring across multiple jurisdictions.

How Do HNWIs Design Their Portfolios for a Secure Retirement?

For high-net-worth expats, retirement portfolio design rarely follows a linear accumulation model. More often, it involves restructuring significant, and sometimes concentrated, wealth into a resilient, income-generating framework that can support long-term financial independence across jurisdictions.

In practice, portfolio construction typically follows a deliberate sequence:

• De-risk concentrated or recently realised positions.
• Construct a globally diversified core allocation.
• Determine the appropriate legal wrappers, custodians, and jurisdictions through which assets will be held.
• Design a sustainable income framework.
• Incorporate selective alternative investments where appropriate.
• Align currency exposure with future liabilities.

While each individual’s circumstances differ, HNWIs generally prioritise six core strategies to support long-term resilience in retirement:

1. Managing liquidity events and concentration risk
2. Diversification and global asset allocation
3. Asset location and jurisdictional structuring
4. Income generation and cash flow management
5. Selective use of alternative investments
6. Currency risk mitigation

This sequencing ensures that retirement planning is not merely about growth, but about restructuring wealth in a way that balances preservation, income stability, tax efficiency, and cross-border flexibility.

Managing Liquidity Events and Concentration Risk

For many high-net-worth expats, retirement planning does not begin with a gradual accumulation phase. Instead, it often follows a significant liquidity event, such as the sale of a privately held business, a carried-interest realisation, or the disposal of concentrated equity holdings.

While these events can dramatically increase personal net worth, they also introduce new forms of risk.

A large, concentrated position, whether in a single company, sector, or property market, can expose you to volatility that is inconsistent with retirement objectives.

Even where long-term conviction remains strong, the risk profile may no longer align with capital preservation and sustainable income generation.

A structured post-exit strategy typically involves:

• Gradual diversification to reduce concentration risk while managing capital gains exposure.
• Coordinating disposals with residency status to avoid triggering unnecessary tax in high-rate jurisdictions.
• Assessing temporary non-residence or exit tax implications before relocating.
• Rebalancing toward income-generating and defensive allocations aligned with retirement timelines.

For internationally mobile individuals, the timing of a business sale or large asset disposal relative to a change in tax residence can materially affect after-tax proceeds.

Jurisdictions such as the UK apply temporary non-residence rules that can re-tax gains if you return within a specified period, while the United States imposes an expatriation tax regime on certain high-net-worth individuals who renounce citizenship.

Given the scale of wealth often involved, restructuring immediately after a liquidity event should be treated as a strategic priority rather than an afterthought.

A coordinated, cross-border plan can preserve optionality, improve tax efficiency, and align newly realised capital with long-term retirement objectives.

Asset Location and Jurisdictional Structuring

For globally mobile HNW expats, portfolio design is not only about asset allocation but also about asset location – the jurisdiction and legal structure through which investments are held.

The wrapper, custodian, and domicile of an investment can materially affect tax treatment, reporting obligations, estate exposure, and creditor protection. For example, certain investment funds may create adverse tax reporting outcomes for US taxpayers, while holding US-situs assets directly may expose non-US individuals to US estate tax.

Similarly, trust or insurance-based structures may be recognised differently depending on the legal system of your country of residence.

Beyond tax considerations, custody jurisdiction also warrants careful evaluation. Investor protection regimes, segregation of client assets, deposit guarantee limits, and bail-in frameworks vary across countries and may influence counterparty and platform risk.

For HNW expats with assets spread across multiple financial centres, aligning asset location with long-term residency intentions, estate planning structures, and reporting obligations is as important as selecting the underlying investments themselves.

Diversification and Global Asset Allocation

Diversification across asset classes and geographies is the foundation of long-term wealth preservation. For HNW expats, this extends beyond market exposure to include diversification across jurisdictions, legal systems, and regulatory environments.

By investing internationally, you can access a broader range of opportunities and reduce reliance on any single economy or market cycle.

For instance, you may allocate a portion of your equities to North America, hold fixed income exposure in Europe, and maintain real estate investments in Asia.

Such global asset allocation can enhance portfolio resilience, as poor performance in one region may be offset by overperformance in another, although diversification does not eliminate market risk or guarantee positive returns.

Beyond improving long-term stability, diversification can also support:

• Proactive tax planning: Different asset classes and jurisdictions entail unique tax treatments, enabling a more strategic withdrawal approach that reduces your overall tax exposure and improves wealth retention, subject to local anti-avoidance and reporting rules.
• Currency diversification: Holding assets in multiple currencies can help mitigate the impact of adverse currency movements, particularly when your retirement expenses are denominated in a single base currency.
• Strategic flexibility: A diverse portfolio allows you to adjust your strategy to your financial objectives (e.g., transitioning from growth-oriented to defensive assets as retirement approaches).

When building a diversified portfolio, your risk profile and investment horizon should guide your allocation decisions. It is crucial to implement an adaptive investment strategy with regular portfolio monitoring and rebalancing to maintain alignment with your retirement objectives.

Implementing this approach can be challenging, particularly when cross-border assets and regulations are involved. Our financial advisers at Titan Wealth International can help design and manage a personalised portfolio strategy focused on long-term preservation and efficient wealth positioning.

Income Generation and Cash Flow Management

Converting accumulated wealth into a reliable income stream is a core objective of retirement planning. The priority is to design a portfolio that can fund ongoing expenses while limiting undue erosion of principal over time.

For most HNW expats, this strategy is anchored in traditional income-generating assets, such as:

• Fixed income securities (government and corporate bonds, and potentially municipal bonds for US expats)
• Dividend-paying equities
• Income-producing real estate, including rental property or real estate investment trusts (REITs)

However, HNWIs may also incorporate additional instruments to enhance cash flow and improve income certainty.

For instance, annuities and certain structured products can be effective in establishing a contractual income stream, subject to issuer solvency and the applicable regulatory protections in the relevant jurisdiction, providing greater stability while allowing other portfolio components to support discretionary lifestyle goals.

For effective retirement income planning, a balance between defensive and growth-oriented assets is essential. Excessive reliance on fixed income may erode purchasing power due to inflation, while an overly aggressive growth orientation may lead to cash flow volatility and sequence-of-return risks.

Where appropriate, professional advice can help calibrate this balance and align income strategy with longevity, spending needs, and risk tolerance.

Selective Use of Alternative Investments

In contrast to most retail investors, HNWIs often have access to alternative assets that are typically unavailable to the broader market, including:

• Private equity
• Hedge funds
• Commodities
• Private credit

Incorporating alternatives alongside traditional holdings can improve diversification and reduce reliance on public markets and their associated volatility.

For instance, while listed equities can experience considerable short-term fluctuations, certain tangible assets and collectibles (such as art) may exhibit lower reported short-term volatility due to infrequent pricing, although valuation uncertainty and liquidity constraints can materially increase underlying risk.

However, alternative investments are typically illiquid, which exposes you to cash flow risks, particularly in retirement. Consequently, allocating too much capital to alternatives is generally not recommended, and disciplined position sizing is essential.

You must also consider the tax implications of alternative assets. For instance, certain private investments involve complex reporting (e.g., PFIC rules for non-US funds for Americans) or potentially unfavorable timing of taxable events. It is therefore prudent to coordinate with tax advisers on the structure, jurisdiction, and timing of alternative allocations.

Currency Risk Mitigation

Currency risk is a central consideration for globally mobile HNWIs with assets and liabilities spanning multiple jurisdictions. Accumulating wealth in one currency and then retiring in a country where expenses are denominated in a different one can create a misalignment that gradually erodes purchasing power.

Over a 20–30-year retirement horizon, even minor exchange-rate fluctuations can compound and significantly impact your disposable income.

Consequently, it is critical to align assets with anticipated future liabilities, while recognising that currency movements are inherently unpredictable and hedging strategies may involve additional cost and complexity.

Common approaches include:

How To Structure Retirement Savings Across Jurisdictions

Retirement income security is not only determined by the assets you hold but also by how they are structured.

For this reason, international pension schemes and tax-advantaged accounts play a vital role in improving portability, managing tax exposure, and supporting efficient withdrawals in retirement, although their effectiveness depends on the interaction between the pension’s governing jurisdiction and your country of tax residence at the time of contribution and withdrawal.

The most appropriate scheme typically depends on factors such as:

• Your home country and existing retirement arrangements.
• The intended retirement jurisdiction.
• Your broader financial objectives.
• Your current and expected future tax residency and domicile status.

For instance, British expats commonly consider two key structures:

Some HNW expats also utilise internationally compliant insurance-based investment bonds, pension arrangements, or trust-based retirement structures established in major financial centres (e.g., Luxembourg or the UAE).

These structures may enable multi-currency investing and flexible withdrawal design, which may be particularly useful when retirement spending and assets are spread across jurisdictions. However, recognition and tax treatment of such structures varies significantly by country of residence and may trigger reporting obligations under regimes such as CRS or FATCA.

US expats typically face a more challenging situation, as the IRS does not allow rollovers from 401(k) or IRA accounts into foreign pension arrangements. Transfers to non-US pension schemes are generally treated as taxable distributions rather than qualifying rollovers under US tax law.

As a result, they typically retain their US-based retirement accounts while contributing to international or foreign plans, with careful consideration of foreign pension reporting requirements and potential treaty interactions.

In addition, certain jurisdictions impose mandatory minimum distribution rules once you reach a specified age.

For example, US tax law requires required minimum distributions (RMDs) from most tax-deferred retirement accounts beginning at age 73 (rising to age 75 for individuals born in 1960 or later). Such compulsory withdrawals can affect cross-border tax coordination, marginal tax rates, and the sequencing of income across jurisdictions.

Mobility and Exit Tax Planning Before Retirement

For expats who are high-net-worth individuals (HNWIs), the decision of where to retire is rarely a lifestyle choice alone; it is a tax and legal decision with long-term financial consequences.

Changing tax residence can trigger exit taxes, deemed disposals, or anti-avoidance provisions depending on your citizenship and prior residency history.

In some cases, ceasing tax residence may also accelerate taxation of unrealised gains, deferred compensation, or share-based remuneration. These rules are often overlooked until after relocation, when corrective planning is limited.

Examples include:

• United States: Certain high-net-worth individuals who relinquish US citizenship may be subject to the expatriation tax under Internal Revenue Code §877A, which applies a deemed disposal of worldwide assets above statutory thresholds. Individuals meeting “covered expatriate” criteria may also face ongoing US tax consequences for certain gifts or bequests to US persons.
• United Kingdom: Temporary non-residence rules may bring certain gains back into charge if you return within five full UK tax years after departure. In addition, UK statutory residence rules and split-year treatment can affect the timing and allocation of income and gains in the year of departure.
• France and other EU jurisdictions: Exit tax regimes may apply to substantial shareholdings when ceasing tax residence, although deferral mechanisms may be available subject to conditions.

In addition, treaty tie-breaker rules may not always produce the expected outcome, particularly if you retain property, business interests, or family ties in multiple countries.

Many tax treaties also contain “saving clauses” (notably in US treaties), which may preserve taxing rights for certain categories of taxpayers despite treaty provisions.

Proactive mobility planning may involve:

• Accelerating or deferring disposals prior to departure.
• Crystallising gains in lower-tax jurisdictions.
• Reviewing trust and holding structures before residency changes.
• Confirming how pensions, deferred compensation, and carried interest will be taxed in the destination country.

For globally mobile HNW individuals, retirement timing and relocation strategy should be coordinated well in advance to avoid unintended tax crystallisation, dual residency complications, or adverse interaction between domestic law and treaty provisions.

How To Ensure Tax-Efficient Retirement Withdrawals

How much, when, and from which accounts you withdraw retirement income may substantially affect your total tax liability and the amount of wealth you retain over time.

A widely used approach is to withdraw funds in a structured sequence:

1. Taxable accounts
2. Tax-deferred accounts
3. Tax-free accounts (e.g., Roth accounts for US expats)

The logic behind this framework is to preserve tax-advantaged assets for longer, allowing tax-deferred and tax-free holdings to compound more efficiently.

However, this sequencing model is not universally optimal and must be adapted to your marginal tax position, residency status, estate objectives, and any mandatory distribution rules that apply. You must still avoid excessive and poorly-timed withdrawals that can push you into higher tax brackets or otherwise reduce after-tax outcomes.

For example, US taxpayers are generally subject to required minimum distributions (RMDs) from most tax-deferred retirement accounts beginning at age 73 (rising to age 75 for individuals born in 1960 or later), which may override preferred sequencing strategies and increase cross-border tax complexity.

Your optimal withdrawal strategy should also reflect the rules of the country in which you hold retirement assets. For instance, UK retirees may benefit from the pension commencement lump sum (PCLS), which can allow up to 25% of pension benefits to be taken tax-free, subject to the relevant Lump Sum Allowance (LSA), currently £268,275 for most individuals unless transitional protections apply.

In addition, for HNW individuals with assets held through trusts, investment companies, or insurance-based wrappers, the timing and character of distributions may differ from personal account withdrawals and require coordinated planning.

Regardless of your approach, it is essential to understand how cross-border tax rules apply to your particular situation. Certain countries, most notably the US, tax citizens on global income, which may lead to double taxation when combined with taxes in your current country of residence.

US tax treaties frequently include “saving clauses” that preserve US taxing rights over citizens, which may limit the relief otherwise expected under treaty provisions.

Double taxation agreements (DTAs) aim to prevent the same income (including retirement benefits) from being taxed in multiple jurisdictions. However, each DTA is unique and allocates taxing rights differently across income types.

Reviewing the applicable treaty provisions and coordinating your withdrawal plan accordingly is critical to avoiding unnecessary tax liability, particularly where pensions, lump sums, dividends, and trust distributions are taxed differently under domestic law and treaty terms.

Which Considerations Should Expats Make Before Approaching Retirement?

One of the most consequential decisions for an HNW expat approaching retirement is where to retire. The retirement location you choose directly shapes your long-term financial security, as tax rules vary significantly across jurisdictions and can materially affect pension income, investment gains, estate outcomes, and exposure to wealth, inheritance, or situs-based estate taxes.

In addition, favourable tax regimes should be assessed for long-term legislative stability. Preferential treatment for new residents or retirees can be amended, restricted, or withdrawn over time, and retirement modelling should account for the possibility of future policy changes rather than assuming current rules will remain indefinitely.

Depending on your retirement objectives, you may prioritise a jurisdiction that offers:

• Special tax regimes for newcomers or expats (e.g., Portugal’s former NHR programme, now replaced for new applicants by a more limited incentive regime, or Gibraltar’s Category 2 residency)
• Low or zero tax on personal income (e.g., the UAE, which currently levies no personal income tax but does impose corporate tax on qualifying business profits, or various Caribbean jurisdictions)
• Flat tax incentives for retirees (e.g., Greece or Italy, subject to eligibility criteria and minimum residency requirements)

For some HNW expats, investor residence or so-called “golden visa” programmes, including those available in certain EU jurisdictions such as Italy, Portugal, and Greece, may also form part of retirement planning. These schemes typically grant residency rights in exchange for qualifying investments, which may provide mobility flexibility or a pathway to longer-term residence.

However, eligibility criteria, minimum stay requirements, and programme availability can change, and immigration status does not automatically determine tax residence or guarantee favourable tax treatment. Careful coordination between immigration rules and domestic tax residency tests is essential.

The timing of your relocation can also matter because certain countries, such as the UK, use split-year tax treatment, which may complicate your tax position and reporting obligations. Statutory residence tests and domestic anti-avoidance provisions may also affect the year of departure and the allocation of income and gains.

Beyond tax considerations, HNW individuals should also evaluate the broader legal and asset protection environment of a prospective retirement jurisdiction. Differences in marital property regimes, recognition of foreign trusts, creditor protection frameworks, and succession law can materially affect wealth preservation and control.

Beyond tax residence planning, expats should also consider several practical retirement issues:

• Healthcare: Medical costs typically rise with age and can become a major retirement expense. You should plan for both routine and unexpected care, especially if you expect to rely on private healthcare, seek treatment across borders, or want access to elective procedures globally. Eligibility for state-funded healthcare may depend on residency status, contribution history, or bilateral agreements, and international private health cover may become more expensive or restrictive with age.
• Long-term care: Assisted living, nursing care, or in-home caregivers can require substantial, sustained funding. In addition to allocating resources, you may wish to establish a fund or trust dedicated to care costs for clearer structuring, particularly where care may be required in a jurisdiction different from your tax residence.
• Insurance: Your insurance coverage should be appropriate across jurisdictions and aligned with your broader objectives. Besides protection, your policy can provide liquidity for heirs, help fund any estate taxes or settlement costs, and financially support dependants or a surviving spouse. Policy ownership, beneficiary designations, and trust arrangements should be reviewed to ensure they align with local succession law and cross-border tax treatment.

How Should HNW Individuals Approach Estate and Legacy Planning?

An effective estate plan for HNW expats must account for factors such as cross-border tax rules and DTA interactions, potential forced-inheritance rules, and differing regulatory and succession frameworks to ensure wealth is transferred as intended.

A well-designed estate plan typically addresses several core components:

• Asset protection: Leverage appropriate legal structures (trusts, foundations, holding entities, etc.) to provide a degree of protection against bankruptcy exposure, creditor claims, and geopolitical and regulatory risks, subject to local insolvency, matrimonial property, and anti-avoidance laws.
• Tax-efficient wealth transfers: Structure ownership and transfers to minimise unnecessary tax exposure, utilising jurisdiction-specific reliefs and planning mechanisms, while considering the interaction between lifetime gifting rules, inheritance or estate taxes, and any applicable gift taxes.
• Business succession: Establish clear continuity plans for business interests, whether through family succession, management buyouts, or pre-planned exits, with attention to valuation, control rights, and potential capital gains or transfer tax consequences.

It is equally important to understand the scope and limitations of each legacy-planning tool. For instance, under Australian law, a will governs many assets in your estate, but superannuation death benefits are generally not distributed under the will by default.

Instead, you must make a binding death benefit nomination (BDBN) to ensure such assets are transferred according to your wishes, and the validity and renewal requirements of a BDBN should be reviewed periodically.

Managing Cross-Border Estate and Inheritance Tax Exposure

Estate and inheritance taxation is often a more significant risk to intergenerational wealth than retirement income tax.

Unlike income tax – which applies gradually – estate taxes can apply at substantial rates upon death, potentially eroding a significant portion of accumulated wealth if planning is fragmented across jurisdictions.

Key considerations for HNW expats include:

• Worldwide vs. situs-based taxation: The UK applies inheritance tax to worldwide assets of UK-domiciled individuals, and long-term residence may create deemed domicile exposure, while the United States may impose estate tax on US-situs assets held by non-residents, often with a significantly lower exemption threshold than that available to US citizens.
• Forced heirship regimes: Civil law jurisdictions may override testamentary intentions by allocating fixed shares to heirs, although the application of EU succession rules or local elections may influence governing law in certain cases.
• Trust recognition differences: Some countries treat trusts differently for tax and succession purposes, which can affect asset protection and tax outcomes, particularly where the trust is not recognised as a separate legal arrangement under domestic law.
• Pension death benefits: The tax treatment of pension transfers on death varies significantly across jurisdictions and may depend on age at death and local residency status of beneficiaries, as well as domestic limits such as lump sum and death benefit allowances where applicable.

International estate planning should therefore align:

1. Asset location
2. Legal ownership structure
3. Applicable succession law
4. Double taxation treaty provisions (where available)
5. Immigration and residency status of beneficiaries

Without coordinated planning, it is possible for multiple jurisdictions to assert taxing rights over the same estate, particularly where assets, citizenship, and residency span several countries.

A cross-border estate strategy ensures that wealth passes efficiently, in accordance with your intentions, and with minimal exposure to avoidable taxation or administrative delay.

Family Governance and Intergenerational Wealth Planning

For many high-net-worth expats, retirement planning extends beyond personal income security to the stewardship of multi-generational wealth.

Significant cross-border wealth can create governance complexity, particularly where family members reside in different jurisdictions with differing tax and legal systems.

Effective intergenerational planning may involve:

• Establishing family investment companies, trusts, or foundations to centralise oversight
• Clarifying succession protocols for operating businesses
• Defining decision-making authority and trustee selection
• Educating the next generation on financial responsibility and cross-border tax implications
• Structuring philanthropic vehicles that align with family values while preserving tax efficiency
• Implementing formal family governance documents, such as family constitutions or shareholder agreements, to reduce dispute risk

Where assets are held internationally, governance structures must also account for reporting obligations under automatic exchange of information frameworks such as the Common Reporting Standard (CRS) and, where applicable, FATCA, as well as local transparency and beneficial ownership disclosure rules.

A clearly articulated governance framework can reduce disputes, improve continuity, and ensure that wealth preservation objectives extend beyond the first generation of beneficiaries.

Why Should High-Net-Worth Individuals Consider Professional Advice for Retirement Planning?

Given the financial, legal, tax, and logistical complexities of retirement planning for HNW expats, expert guidance can be indispensable. To achieve desired, consistent outcomes, your strategy should be coordinated holistically by professionals who can integrate each facet of your circumstances into a single, coherent plan, while ensuring compliance with the regulatory and reporting requirements of each relevant jurisdiction.

In most cases, this requires advisers with specific international expertise, such as:

• An international financial planner with experience across global markets, multi-currency portfolio construction, and cross-border structuring considerations
• A tax adviser or tax attorney who understands the rules in both your home country and your country of residence, including treaty interactions and anti-avoidance frameworks
• An estate planning lawyer with experience in succession law, trust structuring, and multi-jurisdictional documentation

A properly integrated advisory team can align portfolio design with your tax strategy and estate planning objectives, ensuring that investment decisions contribute to your long-term retirement goals, while reducing the risk of unintended tax exposure, reporting failures, or structural inefficiencies.