When moving abroad, expats usually focus on income taxes and property — but retirement savings are often the silent tax killer. Different countries treat pensions, superannuation, 401(k)s, and RRSPs in wildly different ways, and ignoring them can leave you double taxed or unable to access your money when you need it.
What Counts as a “Retirement Account” for Expats?
Australia → Superannuation
US → 401(k), IRA
Canada → RRSP, TFSA
UK → Pension schemes
Elsewhere → Employer savings schemes, provident funds, end-of-service benefits
Common Expat Retirement Traps
Double Taxation on Withdrawals
Some countries don’t recognize the tax deferral in others. Example: A US expat in Australia may face tax on a 401(k) withdrawal in both countries unless a treaty applies.
Loss of Tax-Free Growth
Accounts like Canada’s TFSA or UK ISAs may be tax-free at home but fully taxable abroad.
Forced Withdrawals or Withholding Tax
Non-residents often face mandatory withholding (e.g., 30% US withholding on 401k withdrawals).
Superannuation Confusion
For Australian expats, contributions or withdrawals from super can trigger unexpected assessments overseas.
Treaty Gaps
Not every treaty covers retirement income — meaning you could be exposed on both sides.
An Australian expat → check the Australia Expat Tax Guide for superannuation rules.
A Canadian expat → see the Canada Expat Tax Guide for RRSP and TFSA rules.
For more insights, browse the full Expat Tax Tips & Insights.
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