Retirement Planning in the UAE
“Retired person without money is called an old man, and with money, a gentleman”
Everyone needs to plan for retirement. Every person is unique and so are their needs and aspirations. However, one thing is more or less constant – how to plan for your retirement adequately. This planning plays a vital role in helping you to accumulate enough retirement savings that allow you to live your life comfortably and maintain your quality of life after 55 years or the age you retire.
Retirement plan for Dubai residents and expats can be quite different based on their needs. If you are a foreigner and planning to retire in Dubai, in order to be eligible for retiree visa, you must be at least 55 years old and fulfill one of the following conditions:
- You have or purchase a property in Dubai worth a minimum of AED 2 million
- You have at least AED 1 million worth financial saving
- You have an active income of at least AED 20,000 per month; it could be from your investment plan or pension plan
Thus, when it comes to financially preparing for the above i.e. how to plan for retirement in Dubai, it is crucial to get professional advice from financial advisors in Dubai.
How to Plan for Retirement in Dubai
The following guidelines on retirement planning in Dubai will help you plan better for yours and your family’s future and achieve your retirement goals.
Earlier the better:
Starting with a proper retirement plan at an early age offers numerous advantages. The earlier your start the smaller the sums of money are needed to be saved towards your retirement pot. The cost of delaying retirement savings is significant because you lose out on compounding interest. Read our blog to learn more about the enormous cost you are paying by delaying savings for even one year.
Plan for the costs:
The cost of retirement can be determined by calculating the likely expenses at retirement in today’s value and then adjusting it with expected inflation rate. Medical emergencies, routine health care costs, vacation to meet friends, relatives and grandchildren are typically the big expenses one needs to account for, assuming that housing and transportation are already secured. Expats who work up to 65 years have to calculate and provide for the next 15 to 20 years, post-retirement.
Are you curious to know – when can I retire in Dubai comfortably? Try our Retirement Age Calculator and check now.
Don’t put all your eggs in one basket when strategizing for financial planning, no matter how much your monthly income is and however attractive the scheme may be. Use different strategies and avenues of investment to minimize risk. Investments can be classified as High Risk, Medium and Low Risk. High risk investments have the potential to give high returns, while low risk investments are much safer, but the returns are small. A judicious allocation between all the three categories helps safeguard the retirement savings and investment and get better returns at the same time. Whether you are planning to invest in stocks, mutual funds or other investment vehicles, make sure you consult a financial advisor in Dubai.
Inflation and Tax Liabilities:
The tax rules vary from country to country. Inflationary trends too. Take these factors into account while going for retirement planning in Dubai, UAE. The cost of living, inflationary trends and tax structure in your home country have to be factored in.
Service Gratuity – Is it enough?
Too much reliance on service gratuity is fraught with risk such as will the company be around when you retire or will you be let go long before retirement? Even in the best-case scenario, the service gratuity paid by companies and governments for their employees is nominal and only a supplement to one’s own retirement savings.
Long Term vs Short Term:
For retirement planning in Dubai, long term commitment to savings is important. Short term behavior such as withdrawing funds to book immediate returns can be tempting. However, keeping money invested in long term is wise, even if your retirement pot takes a temporary hit due to market fluctuations.
Planning for your retirement or family’s future means making short and long-term financial planning and wealth management goals while meeting all your current financial obligations. It’s never too late to start financial management and planning for your retirement. At New Age Insurance Brokers, we are an investment and financial advisory in Dubai to help people achieve their retirement planning goals. We are committed to guiding you at every stage of your financial planning to diversify your investments while meeting inflation and tax liabilities.
Financial planning and wealth management help people take better control of their financial situation while saving for their retirement and family’s future. They can live a quality life freely with complete financial freedom and confidence. Financial planning provides a road map to achieve important life goals while maintaining good financial health in the present and the future. It reduces any money-related uncertainty and financial risk throughout your life.
Do you wonder – how much money do I need for retirement in Dubai? Contact us now.
What we do
As an experienced financial advisor in Dubai, we help you cover all aspects of money management while achieving top actionable areas in financial planning.
- Insurance Planning: While retirement planning assumes one lives long, life insurance planning prepares your family financially, in case one doesn’t live long. Insurance planning is an important actionable goal of financial planning. Life and health insurance cover you are your family’s future during tough times in your life. We help you find the best insurance policies based on your income, budget, and financial goals.
- Investment and Assets Planning: Investment and assets planning is the key to successful financial planning and wealth management for your future. We help you invest in best-suited assets, properties, shares, and bonds to help you achieve your retirement planning goals confidently.
- Emergency Fund Planning and Expense Management: We help you plan and manage emergency funds for unplanned expenditures and financial uncertainties to protect your retirement pot.
- Goal Planning: We help you determine your current and future financial goals such as children’s education, marriage, vacation, homeownership, and others while meeting your short and long-term financial goals. With better financial management, we make sure you enjoy every phase of your life.
- Budgeting and Loan Management: We help you make a smart budget based on your overall income and living expenses so that you can have better control of your finances. We also make sure you pay all your loans on time and clear bad loans for a debt-free life.
- Tax Planning: With proper tax planning, we make sure you have more money in your hand to plan for your future. We help you invest in the best tax-saving products to save on your taxes.
- Retirement Planning: We plan accordingly for your retirement while covering all aspects of money management and meeting all actionable areas. We make sure you live a happy retired life and be on vacation for the rest of your life with enough cash in your hand.
Start Financial Planning and Wealth Management with New Age Insurance Brokers
At New Age Investment Brokers, we offer reliable financial planning and wealth management to secure your retired life. We make sure you meet your investment objectives and financial goals for a happy retired life. We are a team of highly qualified and knowledgeable financial advisors in Dubai for all your needs.
Give us a call to discuss your requirements for retirement planning in Dubai.
Our advisors can help you plan for your financial requirements after retirement; e-mail us at email@example.com for more info.