Are you worried about your future? Well, who doesn’t? Especially for an inescapable event that’s right around the corner. It looks kind of blurry, leaving us all confused and worried.
If you are thinking about your retirement, we are on the same page. If you are not, think again. Thinking about your retirement may seem like a dream to you right now, a beautiful experience of doing all your favourite things without any time boundaries, but we have to look at the bigger picture here. For you to enjoy and rest in your retirement, your money has to start working now, just like you did. Sounds confusing?
Don’t scratch your head. We will answer all your questions, even the unstated thoughts. But before everything else, let’s get to the most important thing here, that is, what exactly is Retirement Planning in Dubai.
What is Retirement Planning in Dubai?
In short, retirement planning is financial planning for your retirement. It aims to make you financially stable in your golden age so that you can live the life you have been planning for years in your head in reality.
First of all, retirement planning Dubai isn’t a week’s work. So, don’t wait for the retirement years to knock on your door to get the financial planning started. Secondly, don’t get it confused with wealth management. These two are different things. While the former deals with the money you are earning nowadays, the latter deals with the money you will be spending in your retirement years.
Now, let’s talk a bit more about what exactly is retirement planning advisor in Dubai. Let’s suppose, you are an ex-pat and you are planning to stay in Dubai after retirement. Since the UAE is an expensive place to live in, you will need a lot of money to survive without working. Luckily, the country also offers a dynamic investment market that can help you grow your money to be later used as a retirement income. Retirement planning juggles your future needs and the current investment options to create a suitable financial plan for you.
Why is Retirement Planning in UAE important?
Retirement Planning Advisor UAE may seem like an easy task. Save money and then reap the fruit. But unfortunately, the saying is true, money doesn’t grow on trees. If you think your savings will save you in the future, you are wrong. And it doesn’t matter what amount you save every year. Because the interest rate you get on your bank deposits lags far behind the rate of inflation.
With time, many things change. In financial terms, it’s inflation, investment options, realty value, money value, depreciation of assets, etc. Retirement planning UAE takes everything into account and plans accordingly.
Let us understand it with an example, compounding. Rather than going linearly and saving layer by layer. One can wisely invest to achieve the compounding effect on your savings. This way, the money will grow exponentially with time. Compounding beats many factors like the rate of inflation, depreciating assets, etc.
Now, the question arises, where to invest, how to invest, what amount should be invested, what amount I can spend right now, how am I supposed to deal with any financial emergency (predictable and unpredictable), can I dream big for my retirement, and the list goes on and on.
Every little question falls under the close bracket of retirement planning. This is the requirement and importance of Retirement Planning Advisor in UAE.
What changed after covid-19?
To be honest, a lot. To be precise, a lot for you to get serious about financial planning. The covid-19 pandemic taught us all an important lesson in a real tough way. Especially to those, who didn’t believe in emergency funds. Countless people have lost their jobs, businesses, and family members to the pandemic all around the globe. The whole economy went through a rough patch, leaving numerous people with empty savings accounts.
That’s why we all have to make a full-proof financial plan for our present as well as future to tackle any problem life brings our way. And a perfect financial planner is most likely to be an experienced one. The good news is, you can always find an experienced financial advisor in Dubai to sort things out for you.
How does a financial planner sort retirement planning for you?
I hope you very vividly remember the financial questions we discussed above. The financial planner answers all those questions. Let’s discuss some important ones once again.
- When can you retire?
Gone were those days when the government used to decide your retirement age. Today, you decide when to retire, it could be your 40s or your 60s, it’s all up to you. To be more accurate, it’s all up to your current financial status and future financial needs. Talking with a financial advisor gives you a specific idea about the age when you can retire.
- How much should you save to sustain your lifestyle?
It’s certain that you will have to pay extra than you currently do to sustain your lifestyle. But how much that will be and how can you manage that amount of money? It can only be found out by closely evaluating your lifestyle, bank status and taking other funds like emergency funds, child’s education fund, family protection, etc into consideration.
A financial advisor helps you with every question in your mind and gives you a very precise and calculative answer. So, breathe a sigh of relief.
You must have understood by now that retirement planning isn’t only about your retirement. It takes other essential financial aspects into consideration and then plans for retirement separately. So, don’t worry so much and ask your financial advisor to give you a hand with your retirement plan.
Asfar is an Independent Financial Advisor and Associate Partner with Continental Group based in Dubai, UAE with over 12 years of experience in the region. His clientele includes high networth individuals, corporations, C suite executives, business owners, and entrepreneurs in the region.
Although with proper planning and consistent effort, you can save, invest and distribute your own finances. It is always good to get some professional advice. If you need help in planning your finances in the short, medium, or long term, I can help you do so. You can write to me with your questions and comments to email@example.com