For people moving abroad or returning to the UK, a major consideration needs to be in regard to currency and potential currency risk.
When you live in one country and all of your assets and income are in the local currency, there is no currency risk but as soon as a different currency is involved, then additional consideration is needed.
If you need to move a large amount of capital for a single transaction or send regular amounts, then better terms can often be achieved by using a foreign exchange specialist rather than a high street bank. It is also possible to “fix” the exchange rate in advance through these specialists.
From a financial planning perspective, there are additional aspects to take into account. Where income is required from investments, it may be appropriate to hold the investments in the same currency as the income required, as this then removes the currency risk, once the initial investment has been made. If there is an immediate concern that the exchange rate at the point of investment is unfavourable, then the movement into the new currency can either be delayed or phased over a period of time.
With regard to pension income, this often arises in the currency of the country of origin and fluctuations in exchange rates will affect the income. However, some private pensions can be transferred into a new plan held in the appropriate currency which will remove the future currency risk.
These are all factors taken into account as part of financial planning with RAFP.