How Soon Can I Give Up Work?

The days of waiting until a prescribed age to retire are long gone.

Understandably, many people want to have the option to step back from work as soon as possible - giving them the opportunity to pursue their passions whilst they're still young enough to do so - whereas others are comfortable with the idea of continuing to work in their 60s, but perhaps as part of a 'hybrid retirement' plan.

The key benefit of giving serious thought to want you want this chapter of your life to look like, as early as possible, is that it will greatly increase the likelihood of you achieving the lifestyle you truly want, on the basis of having more time to put your plan into action.

To determine how soon you could be in a position to step back from work on your own terms and start enjoying the lifestyle you’ve envisioned, we’ve set out 3 key steps below...

Step 2: Build a Robust [Accumulation and Decumulation] Financial Plan

Once you have defined your Financial Freedom target number, the next step is to develop a robust financial plan to set you on course to reach it.

This involves strategic investment planning, tax optimisation, and risk management, to grow your wealth efficiently and sustainably.

The asset allocation of your investment portfolio and pension funds is an important consideration. Strategic asset allocation is essential for long-term investors aiming to maximise returns from different growth opportunities across sectors and regions whilst also managing risk by mitigate against significant losses associated with the poor performance of any single asset class or geography. For many British expats the pensions they have accumulated over the course of their working life will represent a significant element of their retirement funds. It's important to have an ongoing understanding of how each of your pensions is performing, whether they continue to reflect your attitude to risk, whether they are exposed to currency risk, and whether they will be accessible and tax-efficient in the country where you choose to retire.

Expats often have the option to transfer UK pensions into international pension schemes, such as an International Self Invested Personal Pension (SIPP). These pension schemes can provide tax advantages, greater flexibility, and investment options tailored to your chosen retirement destination. However, each option has its own rules and implications, making professional guidance essential.

Many British expats overlook the often-significant tax implications of pension withdrawals. Do you know when you will be able to access your pensions, how much you will be able to take as a lump sum - and how much you can potentially withdraw tax-free? Without proper planning, withdrawals could trigger higher tax liabilities in both your home and host countries. Each country has different tax rules for pension income, and double taxation treaties can impact how much tax you owe. Some expats assume they will pay UK tax rates, only to find that their host country taxes pension income at a much higher rate. Tax-efficient drawdown strategies, including phased withdrawals and leveraging available allowances, help to minimise these burdens and ensure that more of your savings go toward funding your retirement rather than paying unnecessary taxes.

Mitigating currency risk is also an important consideration. Exchange rates can fluctuate significantly over time, and an over-reliance on one currency – for example holding all your investments and pension funds in GBP if your intention is to retire in a Eurozone country - can significantly impair your purchasing power. Strategically structuring your assets to address cross-border currency and tax considerations, can help you to achieve greater financial stability throughout your retirement.

Key Considerations

• Do you know how many pensions you have, and their cumulative value?

• Do you know how your pensions are performing?

• Do they reflect your attitude to risk and are they exposed to currency risk?

• Will they be accessible and tax-efficient in the country where you choose to retire?

• Work with a Qualified Financial Planner

Share your vision and your current financial details with one of Forth Capital's dual-qualified international financial planners in a 'planning call'.

• Visualise Your Plan

Using the latest cashflow modelling software, your financial planner will map your projected outgoings and anticipated financial commitments, and overlay your savings and investment income and growth, to simulate scenarios and prepare a robust plan with detailed recommendations for your wealth accumulation and drawdown. This will encompass consideration of your investment portfolio, your attitude to risk, and structuring your assets to optimise long-term growth and minimise tax.

Case Study

Let’s consider James, a 48-year-old executive living and working in Texas.

James wants to have the option to step back from work by the age of 58 and relocate to France, maintaining his current lifestyle.

James estimates that his annual outgoings in terms of his accommodation in France and living expenses, travel, entertainment, dining out and provision for healthcare will be €144,000^* [£120,000] per annum.

James uses Forth Capital’s online tool to calculate his Financial Freedom Target Number.

James establishes that his Financial Freedom Target Number, giving him the option to step back from work at the age of 58 and sustain his desired lifestyle until the age of 100^**, is €3.4 million [£2.8 million].

James’ Savings and Investments

• He has two UK company pensions held in Pounds Sterling (GBP) with the schemes provided by his previous UK employers, prior to him relocating to Texas - with a combined current value of £100,000.
• He has two 401(k) plans with a combined current value of $250,000 [£195,000] from previous roles held with employers in Texas.
• He is contributing to a 401(k) plan through his current employer in Texas – with a current value of $400,000 [£312,000].

James realises that his financial freedom target number is a higher value than his current savings, investments and pension arrangements are currently projected to provide for him by the age he wants to have the option to step back from work [58] - so to address that gap, he realises that he needs to speak to an international financial planner.

To create a plan for James, and bring this to life for him, Forth Capital’s UK-US-EU-qualified financial planner uses cashflow modelling technology to help him visualise the accumulation of his investments and savings up to the age of 58 and to illustrate how he can then drawdown income from those investments to fund his lifestyle from that point onwards.

Financial Planning and Tax Considerations

Managing James’s US 401(k) Plans
James’s financial planner discusses with him the opportunity to consolidate his US 401(k) accounts and roll them into an Individual Retirement Account (IRA). IRAs typically offer a broader selection of investments and lower-cost investment options, enabling his funds to grow unencumbered by the higher fees and charges associated with 401(k)s. IRAs can also offer investments in Euros (EUR), to mitigate James’s exposure to currency risk.

To learn more about optimising your US retirement savings as a British expat, click here.

Mitigating Currency Risk
James’s UK and US pensions held in Pounds Sterling (GBP) and US Dollars (USD) respectively, could potentially benefit from being converted to Euros (EUR) to align with his expenses in France. Currency fluctuations could otherwise negatively impact the potential future value of these pensions over the course of the next 10 years. Since 2001, for example GBP has fallen in value by 24% in relation to EUR. Working with his international financial planner James could mitigate this currency risk by transferring his UK pension funds into an international SIPP held in EUR rather than GPB, and his US 401(k)s into an Individual Retirement Account (IRA) held in EUR rather than USD.

To learn more about managing currency risk and its potential impact on your UK pension if you plan to retire abroad, click here.

Assurance Vie as a Tax Efficient investment and estate planning tool
James could also potentially benefit from an 'Assurance Vie' policy when he moves to France, a flexible and effective investment and estate planning solution; generating tax-deferred growth and providing the flexibility to withdraw funds when needed - as well as providing him with an effective estate planning solution, reducing the inheritance tax payable by beneficiaries.

To learn about the benefits of Assurance Vie as a British Expat in France, click here.

James’s financial planner then creates projections of different scenarios, to show him how making different levels of contributions to his investments and pensions, stepping back from work slightly later, semi-retirement, or introducing an additional passive income stream, and the adjustments to his assets detailed above, could potentially enable him to hit his financial freedom target number even earlier and make a positive impact on the lifestyle he would be able to sustainably afford in later life.

James is now on track to achieve financial freedom by the age of 58, confident in the knowledge that he will have the option to step back from work on his own terms, with the peace of mind that his financial future and financial legacy is secure.

Understanding the Tax Implications of Returning to the UK
James's international financial planner also makes him aware that if he should decide to return to the UK, then they must carefully plan for the implications this could have in terms of his UK tax exposure. Re-establishing UK tax residency could, for example, expose James's worldwide estate to UK inheritance tax (IHT) at 40%, and gains from the disposal of any assets could result in a 24% Capital Gains Tax charge. By working with his international financial planner, however, he can strategically manage his residency status and assets to minimise his UK tax exposure.

To learn more about UK tax-residency click here and to download our Statutory Residence Test Flowchart Guide, click here.

* Exchange rate correct as of 4 March 2025 [Source: OFX]

** Research published in the Lancet^† suggests that if life expectancy in developed countries continues to increase at the current rate over the course of the coming decades, then the majority of people born in the UK since 2000 will live beyond their 100th birthday. With life expectancy increasing in this way, a target age of 100 has been chosen for the calculator, as we want to ensure that all our clients have planned with confidence for a future that is sustainable and affords them absolute peace of mind.

^† The Lancet - Ageing populations: the challenges ahead [Prof. Kaare Christensen, MD, Prof. Gabriele Doblhammer, PhD, Roland Rau, PHD, Prof James W Vaupel, PHD] Published 3 October 2009.

• This communication is for information purposes only and does not constitute financial, legal, or tax advice.

• All content is based on current UK legislation and is subject to change. All planning arrangements should be regularly reviewed in consideration of legislative updates.

• Pension regulation and tax treatment vary between jurisdictions. Any reference to UK or international pension rules is portrayed in general terms and is not intended to reflect individual circumstances. Any examples provided are hypothetical and for illustrative purpose only. Outcomes will differ based on individual circumstances and local law and regulation.

• Pension transfers carry specific risks and may not be appropriate for everyone. The suitability of any transfers or investments should be assessed on an individual basis.

• Past performance is not a reliable indicator of future results. The value of investments can fall and rise, and you may not get back the amount originally invested.

 Last updated 15 August 2025