How To Save For Retirement in UAE When you are 50 or Older?

At age 50 wondering how to save for retirement can be perturbing and even discouraging.

But It can also be a great stopping point to sit down, review and plan your financial future.

If you are yet to plan and save for retirement until now, don't be disheartened! Now is the time. Resources like time, money, and experience can be more than willing to help you save for retirement.

The right time to Save For Retirement

Around 50 years of age, you would be at the top of your professional skills, and abilities, thus resulting in an increase in income.

Most of your personal responsibilities would be more or less over. Children probably would be out of college, ready to propel their own future. Goals like owning a home, starting a business, touring may have been achieved, thus resulting in higher disposable income.

More income and fewer expenses is a wonderful recipe for successful retirement savings.

While savings is essential to build a nest egg, wise investment of your savings is crucial to mitigate inflation and currency risks.

You should carefully choose a good retirement savings plan which takes into account the following aspects; 

Characteristics of a Robust Retirement Plan

Low Premium Payment Term 

The premium payment period should be between 2 years to 7 years and no more. A plan with a longer premium payment term comes with higher surrender charges if the plan has to be stopped earlier than planned.

Security 

When looking to save and invest for retirement, select a reputed and financially stable investment/insurance company.  Do all the due diligence necessary and choose the company which has solid foundations, giving you the confidence that your money is in safe hands.

Favorable Currency 

As an Expat in UAE, your retirement plan has to take into account the currency exchange risk.  Particularly Expats from India, and other southeast Asian countries, whose currencies are falling down in value.

They would be better off, investing in Retirement or Pension plans in UAE in US Dollar Denomination, helping you mitigate currency depreciation risk.

Click here to know Why NRIs should invest in a Dollar based Life Insurance and Investment Plan in UAE.

Diversified 

The investment has to be diversified into various asset classes, industries and geographies to ensure that the portfolio is balanced and is not exposed to extreme volatility

Flexibility 

The retirement plan should be flexible enough to adapt to the possible changes in your financial situation.

Check if the following flexibilities are available;

• Increase or decrease of the premiums
• Partial Withdrawal
• Full Surrender

Tax Efficient 

It is always advised to choose an Offshore plan protecting your income earned as an Expat in UAE. This protects your savings from the tax implications in your home country. It also allows you to decide where and how the Maturity Proceeds of the plan are to be paid.

Transparent 

All savings and retirement plans have charges and other important caveats.

It is extremely important to read the terms and conditions of the plan with your financial adviser, and demand satisfying answers; before signing up for the plan.

Your financial adviser plays a crucial role in helping you choose and manage your retirement plan. Be diligent in choosing your financial adviser.

Obtain as much information as possible about his background, experience, and qualifications.

Seek testimonials of his past clients and other relevant information.

Arrange a Free Consultation to know more about, How to save for retirement or to help you choose and manage your existing investment portfolio.

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