UAE retirement planning is very important if you are looking to secure your financial financial future when you retire. This is very critical for everyone, whether you are a foreigner in the UAE or whether you are a local resident. It is important that you take out the required time to create a retirement plan for yourself. This will help ensure that you have enough resources to enjoy a comfortable life after you have retired from active work. Retirement planning is very essential for everyone as the government currently has no provisions for pension whether you are a foreigner or a local resident of the UAE. If you are looking to create a retirement planning for yourself in the UAE, this article takes a deep dive into the available investment options that are available for both foreigners and the local residents in the UAE.
UAE retirement planning for foreigners in the country
The UAE is home to millions of foreigners who find the country very conducive for their career and entrepreneurial aspirations. In this case UAE retirement planning is very crucial. As a foreigner, if you want to plan for your retirement, you will need to consider your revenue/income. Future plans, and well as the total time you will be staying in the country for. Foreigners are not eligible to receive any pension assistance from the government. This is why it is important for all foreigners in the UAE to make arrangements for their own retirement plans. Next, we present you with some common investment options that are available for foreigners who are working in the UAE.
Gratuities provided by companies on retirement
As a foreigner working in the UAE, one of the only available income that you can receive on retirement is your gratuity. This is the lump sum payment that your company pays to you at the end of your service with them. This may not be enough and you may need to resort to other reliable UAE retirement planning options.
Savings in the bank
One good way for UAE retirement planning in the country us through money saved in the banks. For example, in the UAE, you can easily get backs that offer you opportunities to save with them in the form of fixed deposits or savings accounts that yield high interest. In the UAE, you can easily access bank account services that allow you to save your money and make very high interests.
Investing in real estate
Another good way to ensure sufficient UAE retirement planning is when you put your money in the country’s real estate. For example, it is common to invest in real estate in cities such as Abu Dhabi and Dubai. There are many areas in the UAE where foreigners can buy properties and enjoy the rewards.
Investing in the UAE stock market
The UAE is home to two strong stock exchanges, which are the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX). These stock markets act as important UAE retirement planning platforms as they offer a range of investment opportunities. This means that as a foreigner in that country, you can easily invest in stocks, ETFs, or even mutual funds to help ensure financial stability in the future.
Investing in offshore businesses
Many foreigners in the UAE can choose to incest offshore as a way to diversify their portfolios. In this case, they cam easily have access to many offshore businesses that offer tailored retirement savings instruments according to their needs.
UAE retirement planning for local residents
As a local resident in the country, your UAE retirement planning opportunities will be slightly different than that of a foreign worker. This is because local residents can easily access a range of benefits from the government. However, due to recent uncertainties in the market, it is important for local residents to try other options to secure their financial future once they retire. We present to you retirement planning options available for UAE residents.
Pension scheme of the UAE government
If you are a UAE resident working in the public sector, you can easily access the pension scheme that has been made available by the government. This is however, based on your salary as well as how long you worked for the government.
Investing in real estate
Just like how we have seen with many foreigners, it happens that many UAE nationals like to invest in real estate. When you choose to put your money in the UAE property market, this helps you secure your long-term financial stability. Once you retire, you can expect to get stable income steams from your real estate investments.
Stock markets
If you are a local resident, you can create a UAE retirement planning strategy by investing in both local and international stock markets. The UAE is home to two popular local stock markets known as the DFM and ADX. Local residents can also look beyond these to invest in various available international markets.
