Play the Retirement Catch-Up Game: Top 3 Retirement Concerns (Plus Their Solutions)

When thinking about retirement, most people visualize a relaxed and comfortable life where they will have enough time to socialize, travel, and hang out with their grandkids. However, some concerns might keep you awake at night. For instance, how will I be able to save enough for a stress-free retirement in a short duration? Will my savings last once I decide to retire? What if a large chunk of my retirement savings will end up in medical emergencies?

To play the retirement catch-up game, you need to find out what worries you most. As soon as you can identify your worries and take steps for them, your dream of living a desired leisure life during your golden years becomes more realistic and achievable for you.

Here, we are going to discuss the three retirement concerns that most people have. Along with each concern, here is a simple solution to better prepare for life after retirement.

Retirement Concern 1: Not Enough Time to Have Sufficient Savings for Retirement

A survey conducted by a global consulting company a couple of years ago revealed that almost half of the UAE residents delay their retirement planning until they reach their late 40s or 50s. Surprisingly, 45 percent don’t have any plans for a comfortable life post-retirement. Meaning, they are left with so little time to save enough.

Solution: Start Saving and Focus on Investing Early

The key to having sufficient savings for retirement is to start saving in your early 20s or at least late 20s. This way, you can harness the power of compound interest and the time in the market to grow your wealth exponentially. Besides, you will need to set aside small amounts that won’t make much impact on your current lifestyle.

If you are already past this age, the best time to start saving and investing is today. But, before you make any move, it is recommended to consult a reputable financial advisor to better know all your options.

Retirement Concern 2: What Will Happen If I Outlive My Retirement Savings?

It is not uncommon for people to live past the age they assume they will die. In the UAE, the current life expectancy is 78.32 years in 2022, a noticeable increase from 74.33 years in 2000. The trend of increasing life expectancy shows that more people will have to work longer to make ends meet during their twilight years, especially if they don’t have enough savings.

Build an emergency fund that can help you pay for expenses for several months in case of job loss or medical condition.

Consult an experienced financial planning advisor to make investments that provide better ROIs and also think about diversifying your investment portfolio.

Retirement Concern 3: What If I End Up Spending More on Medical Emergencies Than Expected?

As people age, the risk of infections and suffering from certain diseases or conditions increases dramatically. Dementia, cardiovascular diseases, diabetes, arthritis, high blood pressure, and mobility problems are some of the most common health problems that make the life of senior population difficult. Suffering from a long-term disease or condition is the last thing you want in your senior age.

Solution: Do Regularly Exercise and Stay Active

The best way to reduce your medical bills is to better take care of yourself. Regular exercise can help maintain your body and keep you fit. Experts recommend devoting at least 150 minutes a week doing aerobic activities such as brisk walking, jogging, biking, or swimming.

You can sign up for gym, yoga classes, hire a personal trainer, and even consult a nutritionist to ensure that you stay healthy and eat healthy

Lastly, don’t forget to have sufficient medical cover (i.e. health insurance) to reduce your out-of-pocket costs for medical emergencies and treatments.

New Age Insurance Brokers LLC is an esteemed UAE-based financial advisor, passionate about helping people with smart retirement planning. If you are ready to tackle your retirement concerns, please feel free to get in touch with us anytime.