How to save for your twilight years while living and working abroad Those aged between 25 and 34 should be saving between 15pc and 25pc of their income for retirement, rising to 25-35pc for those aged 35 to 44, and 34-45pc for those aged 45 to 54, said Mr Green. The sooner you start saving, the easier it is going to be as you have a longer period for those savings to grow to meet your retirement needs. Expats will not benefit from tax relief on their pension savings while overseas in the same way as they would if they were in the UK, unless they are working for the Armed Forces overseas or the Crown. However, if you are living in a country where you do not have to pay income tax, then any money you put away for your pension will still effectively get 100pc tax relief. Pension saving when you are based overseas can be problematic, especially if you do not yet know where you plan to retire. Building up funds offshore can be tax-efficient, but if you are coming back to the UK to retire, you should think carefully about the best way to bring that money back onshore to limit any tax liabilities. Of course, if you have already built up your pension pot in the UK and have retired overseas, you are likely to be one of the thousands of people who has seen your spending power plummet as the pound has weakened on the back of the UK's double-dip recession, and the ongoing quantitative easing strategy implemented by the Bank of England. Those retiring to Australia - still the number-one destination for expats - will have seen their spending power nearly halve since 2003, according to research from Equiniti, one of the UK's largest pensions administrators. It means many pensioners will have struggled to make ends meet because they are constantly exposed to currency fluctuations between the pound, which is the currency their pension is paid in, and their new "home" currency, which is what they are spending in each day. However, you can protect yourself from this and gain a number of other benefits by transferring your pension to a qualifying recognised overseas pension scheme (QROPS), which means your entire pension pot can be moved to a scheme in the country you are now living in. If you do not have a QROPS in the country you live in - there is a full list on the HM Revenue and Customs website - then you can use a scheme in an offshore jurisdiction, such as the Isle of Man. You would need to get professional advice before undertaking the move, but you can access benefits such as a lower level of income tax, a higher tax-free lump sum, and lower tax liabilities on your pension if you pass it on to your estate. If you can transfer the pension to the country you live in now, you will also remove the impact of currency fluctuations. Unfortunately, you will not be able to move your state pension into a QROPS. The rules vary in each country, so you need to consider your options carefully before you make the move. It is essential to take independent financial advice from a pension specialist.