Living Well, Not Just Long in Portugal

Moving to Portugal is about more than sunshine and scenery, it’s about creating a lifestyle that’s financially sustainable. Whether your income comes from pensions, savings, or investments, the goal isn’t just to make your money last, it’s to make it work for you throughout retirement.

Pre-Relocation Planning

The best financial planning starts before you pack your bags. Taking advice while still UK-resident can unlock opportunities that disappear once you’ve left, such as using UK wrappers efficiently, accessing certain pension benefits, or repositioning assets before Portuguese taxation applies.

Understanding Your Time Horizon

Many underestimate how long their retirement income needs to last. A 65-year-old couple today has a strong chance that at least one partner will live into their 90s. That means your investment plan needs to serve you not for ten years, but for thirty. Thinking in decades, not years, changes everything about how you invest.

Risk vs. Volatility

True risk isn’t the ups and downs of markets, it’s the danger of losing purchasing power. Inflation quietly erodes savings left in cash, while diversified investments in quality assets often protect wealth over time. The “safest” place for money isn’t always the best place to keep it.

Drawing a Sensible Income

The right withdrawal rate depends on your portfolio and goals. As a rule of thumb, withdrawing 4–5% per year from a balanced portfolio can sustain income for decades. Even modest drawdowns can comfortably outlast a 30-year retirement if managed well.

A €1 million portfolio growing at 5% can support €50,000 annual income without eroding capital. Taking €70,000 (7%) gradually reduces capital, but in a controlled, predictable way that could still sustain 40–50 years of income.

Building the Right Portfolio Mix

A well-structured portfolio blends shares, bonds, and cash, but also considers geography and currency. UK-based portfolios heavily weighted in sterling can underperform and expose retirees in Portugal to unnecessary currency risk. Euro-denominated investment solutions often make more sense once resident here.

The Role of Tax-Efficient Structures

Tax efficiency is as important as investment performance. The use of compliant structures, such as EU investment bonds or qualifying pensions, can reduce the effective tax rate on growth to as low as 11.2% after 8 years or benefit from the 85/15 Category H rule for UK pensions. These advantages can dramatically increase how long your money lasts.

We have a client-focused guide on pension planning in Portugal, feel free to ask for a copy.

Fees and Transparency

Know exactly what you’re paying and why. Transparent, fee-based advice ensures your money is working for you, not for the adviser. At Atlas Bridge Wealth, our fee structure is clear, capped, and aligned to outcomes, not product sales.

Professional Guidance

Retirement planning across borders is complex, UK pensions, Portuguese tax law, and double taxation treaties all interact differently. Working with a Chartered adviser regulated in both jurisdictions ensures your plan is optimised for life in Portugal and beyond.

Conclusion

The key to making your wealth last isn’t luck, it’s structure, foresight, and good advice. By combining the rigour of UK financial planning with the flexibility of Portugal’s tax system, you can enjoy the lifestyle you’ve worked so hard for, without worrying whether your money will keep up.