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Retirement abroad can bring major local banking problems. It is unlikely that retirees will be able to import into new countries their good and long banking histories. In most countries there are no banks eagerly waiting to do business with new residents. There are ways to ease entry into a new financial system and to, eventually, derive all available facilities. Solutions begin at home with early preparations for the move. The "Golden Rule" for retirees is that nothing irreversible should be done without at least one, preferably more, exploratory visits to the new country. Prior to such a trip it should be ascertained with which organizations currently used banks do business in the destination country. A letter of introduction to the overseas correspondent bank or a general banker's reference should be obtained. Such a document may not need to be produced but it may provide some introductory insurance for both a bank and the prospective customer. If language is likely to be a difficulty it may be helpful to use the services of a local solicitor or attorney. The choice of such a firm may be found by reference to the home solicitor in the same way as a local banks are identified. Advice from others who have already retired to the country should also be sought if possible. The ultimate selection of a bank or a legal representative must be a judgement call based upon all advice obtained and personal feelings at the time. It is most important that nothing should be done to adversely affect present banking arrangements. This applies especially to card facilities. Most cards can be used abroad although some banks like to be notified in advance if overseas charges are likely to be incurred. In some countries not all banks conduct overseas business. The purposes for which a local account is needed must be decided before applying to become a client. Most retirees will need a bank with the ability to receive funds from overseas. Such receipts may be as transfers from personal offshore accounts or from the paying authorities of the sources of any pensions. It is also possible that transfers to offshore accounts may be necessary if too much in local funds is accrued. This can occur from local employment earnings, if such activity is allowed, or from excess pension credits if the whole of such income is transferred to the new country. The best arrangement is to have overseas income paid to an offshore account and to draw on it in the new country of residence as necessary. Most banks, offshore or local, will provide a debit card which can be used at local ATMs to obtain cash and to pay for larger items such as hotel bills and airfares. Wire transfers between banks are usually easy to arrange although they can be expensive. Opening a local bank account is not always easy. Problems encountered in the U.S.A. are illustrative of the difficulties that a new resident may encounter. The initial meeting at a major bank in the U.S.A. will probably be with a staff member known as a "banker". This grade seems to be the basic level of professional employee at a bank. The interview in the banker's cubicle will be concerned with establishing identity and status in the country. It is quite possible that the interviewer will be accustomed only to dealing only with U.S. citizens. The banker may have no knowledge of various kinds of immigrant status. The lack of a social security number will be confusing. After all information has been entered into the banker's computer and any automatically produced forms have been completed and signed it is likely that a checking account will be opened. It is also probable that internet access and a debit card will be available. Any incorrect interpretations or assumptions can have serious repercussions perhaps many months later particularly with respect to taxation. Only the minimum possible deposit should be tendered at this time. Confirmation of the opening of the account should arrive by post together with checks and the debit card. With this account and the card remote access to funds is available. Most shops and internet traders will accept such cards for purchases. For a few months bank statements and mail should studied carefully. If questions arise or explanations are needed it is best to visit the opening branch. A banker will relay any major concerns to a senior employee. Slowly knowledge of the local banking system is accrued. Banks in most countries will follow similar principles although staffing situations and local conditions may vary. Normal living will be possible with judicious use of overseas and local facilities. Only time will cure remaining problems and satisfy any residual desires. Les Johns who has lived and worked on all continents still travels widely. His experience can be derived from his web site which is worth a visit for all considering retirement abroad. At this site it is also possible to purchase the inexpensive country specific books in the series "How to Retire in ...." series published for the Amazon Kindle and the Barnes and Noble Nook. The web site and the books will save retirees much research time.
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Retirement Abroad, banks, retirees, debit cards, checking account,
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