They have the ability to acquire a larger disposable income than their friends and family in the UK, and their counterparts in their countries of residence, according to Nigel Green, chief executive officer of the deVere Group, which manages funds for more than 60,000 expat clients.
He said that expats can be divided into two groups; those who are reeled in with high salaries and incentives, and those who have spent time in a country and were lured by its lifestyle and culture.
“The first category will naturally have a significant bearing on the overall figures for expat wealth, as they’re a country’s high earners. Historically, many top jobs in emerging markets, places such as Russia, China and Brazil, for example, have gone to expatriates as they have often had more professional experience,” he said.
“In addition, the second category, those lured by a country’s lifestyle as well as those in the high earning first category, are often able to take advantage of substantial tax savings."
Green noted that this week’s HSBC Expat Explorer survey for 2011, which showed that expat wealth has remained buoyant, is a testament to the strength of the expat in the financial market place.
And he added that those living and working abroad, wherever they are in the world, have distinct benefits.
“For example, they can transfer their UK pension in an HMRC approved Qualifying Recognised Overseas Pension Scheme, or QROPS," explained Green.
"By doing this, they avoid UK income tax if they retire outside the UK, they avoid inheritance tax and lifetime allowance charges, and have a potential flexibility to diversify away from the sterling, if they choose to."