Retirement Savings- Planning for a bright future

Enjoy your tomorrow with a steady income

Planning for retirement has become essential for expats across nationalities. Post global recession, Governments across the world are cutting expenditure on pensions / old age support and healthcare facilities. Hence, Saving for maintaining your lifestyle is imperative not just for individuals whose home countries do not offer any income post retirement but even for those where the State provides pension and other benefits.

Are UAE residents saving enough for retirement? Most peeople are essentially driven by consumerism. Aggressive marketing and easy credit through credit cards and loans often ensnares individuals into spending more than they should thereby not leaving any scope for savings. There can be a couple of reasons for not saving enough:

  • Lack of Awareness on the concept of retirement planning
  • Lack of knowledge on how to save and in what instruments
  • Current spending habits that are influenced by sales and offers
  • A lifestyle of living off Bank’s credit that leaves no scope for saving.

The biggest problem that people can face at retirement is to maintain the current standard of living in terms of basic amenities like home, car & medical facilities. Lack of adequate finances for other needs such as entertainment and travel can often leave people depressed. A systematic investment plan will ensure that you and loved ones can enjoy a secure future and have fun post retirement.

The ideal way to save- What is it? How much should you save? Where should you keep the money?

The basic principle of Retirement Savings is to start investing early on in life.

Identify the gap – Do an online financial health check-up (a free tool available at MoneyCamel.com) to measure your financial health. It should be useful to look at how much you are saving versus what you need to save. Answer some basic questions - Where will you be 10-20 years from here and with what savings? Use free tools available on MoneyCamel.com like Own a Home Planner  and Retirement Planner to help you plan a secure future for your family.

Start investing for retirement - Saving for Retirement is all about investing in assets that will appreciate significantly in value over a long period of time. Essentially these assets have to not just beat inflation rates but also grow at a higher rate than inflation to deliver the expected objective.

To achieve the above, the three key areas of focus for any asset are:

  • The buy price.
  • The sell price.
  • The management in-between.

The next question you might ask is: “what can I buy which goes up and beats inflation”?
Broadly speaking investors buy a mix of assets such as cash (or Bank Deposits) , property, equities, bonds and collectibles. Those who do not wish to foray into the markets directly use Hedge Funds or AIS which essentially focus on these asset classes. Long term contractual saving plans offered by Insurance Companies are good for retirement. These plans work like forced saving plans and are great for people who’ve set long term saving objectives such as retirement.
There is nothing that goes up in a straight line without a risk of some sort. Absolutely nothing. Even guarantees are subject to the ability of the guarantor. It is most advisable to take assistance from a qualified financial planner to help you build a strong – diversified portfolio. Speak to us or write to us to meet a qualified financial planner.

Pension solutions include investment products for those starting to plan their retirement savings; it also includes specialist product information for expatriates of countries such as: Australia; France; UK (QROPS and SIPPS refer); South Africa and elsewhere. After all, Pension/Retirement legislation in your country of end-use can have a significant impact on the final advice. So if you know which Country or City you will retire in, it will help decide the right asset mix for you.
Additionally, our advisory partners are equipped to manage existing Pension structures assuming that they have “Terms of Business” with the existing product “providers”. Ultimately, our Pensions advice and education is designed to provide clients with greater control over their retirement options. We work with the leading product providers in the financial industry to offer comprehensive choice as well as peace of mind. To discover which solutions offer you the best retirement income possibilities, simply fill in the short form we'll be in touch shortly.

Saving for Retirement is no more a financial burden but rather the path to your financial freedom in the future.

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