Without a solid financial plan, retirees risk running short of money, losing track of pensions, or paying unnecessary fees and taxes. The good news is that with the right preparation, you can enjoy a secure, comfortable, and stress-free retirement overseas.

This Blog covers everything UK citizens over 60 need to know about financial planning for retirement abroad, with examples and a focus on Vietnam.

Why Financial Planning Matters in Retirement Abroad

• Fixed Income – Pensions and savings must last for decades.

• Currency Fluctuations – Income in GBP but expenses in VND (Vietnamese dong) or another currency.

• Healthcare Costs – Insurance and medical emergencies must be budgeted.

• Tax Implications – Retiring abroad may affect tax liability in both the UK and your new country.

• Lifestyle Goals – Whether you want to travel, dine out, or live simply, your budget needs to reflect your priorities.

Step 1: Assess Your Income Sources

UK State Pension

• Currently around £221.20 per week (£11,500/year) for those who qualify for the full new State Pension.

• Can be claimed abroad, but it may be frozen (no annual increases) in some countries.

• Vietnam is not a country where UK pensions increase annually, so your pension will be frozen at the rate you first receive it.

Workplace and Private Pensions

• Can usually be paid abroad.

• Check if there are charges for transferring funds overseas.

• Consider consolidating small pensions for easier management.

Savings and Investments

• ISAs remain tax-free in the UK but may not have the same benefits abroad.

• Rental income from a UK property can provide steady income but must be declared to HMRC. See my Blogs – A Guide to becoming a first-time Landlord and Tax on rental income.

Other Income

• Some retirees take on part-time or online work abroad.

• Check visa restrictions before working in Vietnam. Read my Blog on Visa and residency

Step 2: Budget for Life Abroad

A realistic budget prevents overspending and stress.

Example:  this is my average monthly budget here in Hanoi

• Rent: £250 ( I live in a popular area in Hanoi, the capital city, you can live cheaper in other parts of the country)

• Utilities & Internet: £48  (electricity £45, Water £3, Internet free with rent)

• Groceries/Eating out: £200   ( I very rarely cook and eat out usually twice a day. Average meal out is £1.40)

• Health Insurance: £90   ( Ask Tanzing Pacific for a free quote)

• Transport: £50 (Currently rent a motorbike £40 a mth, petrol about £5, but to book a Grab bike/taxi cost as little as £1 a journey of up to 5km)

• Entertainment: £200    ( Beer, coffee shops. Cinema, snacks etc)

• Miscellaneous: £100

• Total: £938/month (about £11,250/year)

Things I do not have to pay for living abroad – council tax, tv licence, road tax and insurance, window cleaner etc. I was lucky I had paid my mortgage off, but that means the cost of renting an apartment here in Hanoi increases my monthly out goings.

Compare this with an equivalent UK budget of £1,200+/month, and the savings are clear.

In the UK I had to work to help pay the bills and socialise etc. I have retired here in Hanoi, Vietnam so I am now living the relaxed life and my expenses are covered without having to work. As well as my private pension income I receive rent from my UK property. In 5 years time I qualify for the state pension too.  I would suggest you always have an emergency fund saved up as well that you can call on should, or when, unexpected expenses occur. 

Step 3: Banking and Currency

• UK Bank Accounts – Keep one open to receive pensions and pay UK bills. I did but have experienced some problems initially.

• Local overseas bank Accounts – may be required for local transactions such as rent etc.

• Money Transfers – Avoid high bank fees. Use services like Wise or Revolut for cheaper transfers.

• Currency Fluctuations – The GBP/VND rate can impact your monthly budget. Plan for ups and downs.

Step 4: Tax Considerations

UK Tax Rules

• You must inform HMRC if you move abroad (using form P85).

• You may still pay UK tax on pensions, savings, and rental income. See my Blog – Tax on Rental Income

• Your UK personal allowance (£12,570 in 2025) still applies if you’re classed as a UK taxpayer.

Vietnamese Tax Rules

• Vietnam taxes residents on worldwide income, but enforcement on pensions varies.

• Rental or business income earned locally is taxable.

• Double taxation agreements (DTA) may apply, the UK has a DTA with Vietnam for pensions.

Consult a cross-border tax adviser before moving.

Step 5: Healthcare and Insurance

Healthcare is a significant financial consideration.

• Local health insurance in Vietnam: £800–£1,500/year. Depending on your age and any pre-medical conditions.

• International cover: £2,000–£5,000/year.

• Budget separately for long-term care or medical emergencies.

• But generally private hospitals are a lot cheaper than paying private back home in the UK.

• Main issue here is you may well lose access to the UK NHS. Look into this yourself and build this into your planning.

Step 6: Housing Decisions

• Renting – Flexible and affordable in Vietnam (£250–£400/month).

• Buying – Complicated for foreigners in Vietnam; most retirees prefer renting. Different countries have their own rules. Look into this closely.

• UK Home – Decide whether to sell or rent. Renting provides income but involves landlord responsibilities. Read my Blog – Renting or Selling

Step 7: Estate and Legacy Planning

• Update your will to reflect assets abroad.

• Consider powers of attorney in case of ill health.

• Check inheritance rules — Vietnam has different laws compared to the UK.

Common Financial Mistakes Retirees Make

1. Underestimating the cost of health insurance.

2. Forgetting their UK pension may be frozen.

3. Not budgeting for flights home or visa renewals.

4. Paying excessive fees on international transfers.

5. Neglecting to seek tax advice before moving.

Tools for Managing Retirement Finances Abroad

• Wise/Revolut – Low-cost money transfers and multi-currency accounts.

• XE Currency – Track exchange rates.

• HMRC Online – Manage UK tax obligations.

FAQs

Q: Can I get my UK State Pension in Vietnam?
Yes, but it will be frozen at the rate you first receive it — no annual increases.

Q: Do I have to pay UK tax if I live abroad?
It depends. UK rental income and some pensions are taxable in the UK. Inform HMRC when you leave.

Q: Should I keep a UK bank account?
Yes. It makes receiving pensions and paying UK bills easier.

Q: Is it better to rent or buy in Vietnam?
Most retirees rent due to legal restrictions and the low cost of renting.

Q: How much do I need to retire comfortably in Hanoi?
Around £1,000–£1,200/month provides a very comfortable lifestyle.

Conclusion

Financial planning is the foundation of a successful retirement abroad after 60. With lower living costs in places like Vietnam, many retirees find their pensions and savings stretch much further than in the UK. However, without preparation for taxes, healthcare, and exchange rates, unexpected costs can quickly erode savings. Plus, if you have a Vietnamese girlfriend these costs can go up easily.

By carefully managing pensions, setting realistic budgets, and securing the right insurance, retirees can enjoy peace of mind and financial freedom. Retirement abroad doesn’t just have to be cheaper — it can also be richer, more enjoyable, and more rewarding.

For anyone considering Hanoi or elsewhere in Vietnam, a well-prepared financial plan ensures that money is the least of your worries as you embrace this exciting new chapter.