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Will my pension in the UAE cover my retirement expenses in my home country? – information

Will my pension in the UAE cover my retirement expenses in my home country? – information

Residents can view savings schemes offered by various governments

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By Dhaval Jasani/Money Matters

published: Tuesday, February 21, 2023 at 1:06 am

What are the best savings plans in the UAE? Should I invest in stocks here? Is it better to invest in mutual funds and CDs in my home country than somewhere with higher interest rates? I am 34 years old and I arrived in UAE last year.

Taking your age into account, we assume that you will continue to work in your career for at least 20 years, whether in the UAE or outside the UAE, which gives you a longer window to accumulate savings.

While the UAE offers a variety of savings schemes from bonds to life insurance, you may wish to compare the savings schemes available in the UAE and your home country and choose the one with higher returns and lower risk.

As far as your personal investment portfolio is concerned, a combination of savings plans, bonds, mutual funds, bank term deposits, life insurance plans or retirement plans may be ideal considering your age group and life expectancy between now and into the future. retirement age.

Investing in the stock market always entails market risk and you should thoroughly research the inherent risks associated with any stock or market before deciding to invest based on your risk appetite. You may want to invest your money in index funds that various markets offer, and only invest a portion of your savings that you’ve worked hard to invest that you may not recall in the near future.

I have been working in UAE for 21 years. Should I rely on my pension to cover my retirement expenses in my home country? My net salary is Dh11,500 and I will retire from UAE next month at 60 years old. I own my ancestral home and my wife is my only support.

We are delighted to hear that you have witnessed the UAE’s growth story during your time here. We’re assuming you plan to spend the rest of your retirement in your ancestral home, saving you any rental expenses.

Fee income can provide you with additional liquidity in addition to the savings you may have accumulated to date. For your living expenses and unexpected expenses, you can keep a portion of your gratuity earnings. The rest of the funds at your disposal can be placed as fixed deposits with reputable banks, with the option to pay interest to support your daily living expenses, or invest a portion of these proceeds in the form of government bonds offering regular interest payments.

Check out the savings plans offered by governments, especially for seniors, designed to maximize interest income.

At this age, you probably don’t want to lose some of your capital while continuing to rely on your lifetime savings and fee income for the next leg of your life journey.

Also, be sure to check out any health insurance you may wish to use for yourself and your spouse.

Dhaval Jasani is a Chartered Accountant and the founder and CEO of ZTI. The views expressed are his own.

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