Frequently Asked Questions
Everybody needs a pension. If you haven’t got one, you need one! For a more detailed explanation, read our blog post on the subject here.
There are three key reasons why this is the best one for nomads – for the details, please click here
Pick an amount that you can afford without worrying about it each month – you can always increase the amount you save in future months. For more things to consider, please click here.
There are three big differences, which are really important. For the details, please click here.
Yes – in three jurisdictions. Those are Cayman Islands (UK Overseas Territory), Puerto Rico (USA Overseas Territory), and Malaysia. It’s also rated A- by the credit ratings agency AM Best. To check the licenses, please click here.
Most nationalities are accepted – although we currently cannot take applications from citizens of the USA or North Korea, and a few others. For the full list of nationalities accepted, please click here.
Most countries of residence are accepted – although we currently cannot take applications from residents of the USA or North Korea, and a few others. For the full list of countries of residence accepted, please click here.
Three things – your identity (i.e. a scan/photo of your passport or other official photo ID), your address (i.e. a scan/photo of a bank statement, utility bill, rental contract etc – which must be dated within the last three months – and in some cases we can accept a letter from an employer or business/website), and your payment card (a selfie with your face and the full credit or debit card visible (just the front of the card, not the back).
It will take you less than 10 minutes to fill in the form, and if completed correctly with all the required documentation uploaded, your pension will be active on the same day.
Yes – just upload ID and address proof for both applicants.
Your account is accessible 24/7 online via www.investors-trust.com
Two ways – firstly the structure, which is provided by Investors Trust, a global insurance company licensed and regulated in the Cayman Islands (UK overseas territory), Puerto Rico (USA overseas territory), and Malaysia. Secondly, by default, all invested monies go into an ultra-low-cost S&P 500 tracker from iShares, rated five-stars (out of 5) by Morningstar, a strategy consistently recommended by Warren Buffett, the world’s most successful investor (ever). For more information, please click here.
Yes, any time you like. Virtual cards and single-use cards are also accepted.
An index of the 500 largest companies listed on the stock exchanges of the USA, often taken as the 500 largest companies in the world. Investing into the index means you’re becoming a part-owner of each of those 500 companies which comprise the index. This means that you’re entitled to a share of their profits (paid via dividends), and a share of the company’s overall value, as expressed through it’s share price. Investing into an index is significantly cheaper than buying individual shares of all these companies. For more information, please click here.
No, you can also use it to save up for other things – such as buying a property, paying for children to go to university, or just general savings. Just don’t forget your retirement planning – one day you will want – or be forced – to stop doing whatever it is that you do to generate your income, and a pension will come in really handy…
Yes you can, although if you make a withdrawal before the end of your selected duration it negates the guaranteed minimum return. We strongly suggest not withdrawing money from your pension early – you will need it in future! Try to keep your pension going as planned, and make withdrawals from other savings if needed. For a savings product specifically designed to be accessible for making withdrawals without any negative consequenses, check out SavingsForNomads.com
You can increase at any time by starting a new plan in addition to your current one – this can be done at any time. You can also stop saving each month, but this negates the guaranteed minimum return. If you’re looking for a more flexible way to save and invest money regularly, check out www.SavingsForNomads.com – this works really well as an addition to your pension, so you’ll have one plan that you always stick to and another which you can change as you make your way through life.
Of course they will change! And when they do, your financial planning may need to change with them. In a worst-case scenario, you can stop saving each month without losing the money you’ve invested, and you can also make withdrawals if needed – just remember that stopping, or withdrawing, takes away the guaranteed minimum return, so what you get back will be entirely dependent on the S&P500 Index. Aim to build flexibility into your overall financial planning by having different solutions/products to different needs – that way, you’ll have the ability to change the more flexible aspects of your financial plan when needed, whilst still staying on track with the less flexible aspects which come with the highest benefits.
This depends entirely on the performance of the S&P500 Index. Historically, it has risen around 10% per year on average – just bear in mind that this is an average, sometimes it goes up, sometimes it goes down, and past performance isn’t a guarantee of future performance. What is guaranteed, is the minimum return – 100% of the money you pay in over 10 years, 140% of the money you pay in over 15 years, or 160% of the money you pay in over 20 years – but this is a minimum, and you can reasonably expect the actual return to be much higher.
All investment gains you make are not taxed in the jurisdiction where your pension is held (Cayman Islands, Puerto Rico, or Malaysia), and no tax is deducted at source. When you receive your pension money in future, whether that is a regular payment or a one-off payment, tax treatment will depend on the current rules of whatever country you’re living in at the time. In the majority of cases it would be completely tax free, in other cases your investment returns (what you get paid out, minus what you paid in) may count as a capital gain. There is no tax liability in either the Cayman Islands, Puerto Rico, or Malaysia (unless you are a resident of one of these countries and hold your pension in the same location). Speak to a tax specialist in your country of residence a year or two before you retire to determine the most efficient way of legally reducing any tax liability, if any.
Yes! Data shows that the vast majority of nomads are not saving for their retirement at all, and that many of those who do are not saving enough. A few clicks or posts can earn you really good referral fees (which you could use to boost your own pension value). Please click on the ‘Affiliate’ link in our footer to learn how you can get paid for helping us to spread the word about PensionsForNomads.com!
Yes of course – there are a lot more FAQs in our knowledgebase section at https://support.PensionsForNomads.com, and for any and all other questions, please email us at hola@PensionsForNomads.com and we’ll be happy to assist you, including setting up a time for a phone or skype call if you prefer.