Planning for retirement may feel distant but starting early is crucial for a smooth journey.
When preparing for retirement, it is important to understand your individual needs and goals.
While many people believe they are aware of their spending and saving habits, only a small portion seek professional guidance regarding money management.
By consulting with a financial expert, you can develop an investment portfolio that matches your risk tolerance, investment goals and timeline and, with that, help you to achieve your individual financial goals.
Another important element that tends to get missed easily is inflation, which gradually raises the cost of living.
Your retirement savings should account for this increase to ensure your purchasing power remains intact.
Below are five key strategies to plan your retirement.
1. Understand your retirement goals
Visualise your ideal retirement – including your desired location and activities. This will help you start your financial journey. The more vivid this visualisation is, the better prepared you can be.
Creating a solid savings and investment plan is key to achieving financial success.
To start, establish clear retirement goals based on your current and desired lifestyle, as well as additional expenses such as your children's higher education.
Calculate how much you will need to save – aim for 15 per cent to 20 per cent of your income for retirement.
However, making a start is crucial, even if it is only 5 per cent of your income. For example, if you earn Dh5,000 a month, saving Dh750 can help you stay on track.
2. Prioritise retirement savings
It is never too late to take the first step towards securing your future. While it is important to consider when you start, it is also necessary to focus on how you start!
You do not need to start with a lot of money – even Dh100 a month can make a difference. Starting early gives your money more time to grow and, therefore, more opportunities.
Residents planning to retire in the UAE should also take advantage of employer-sponsored options to ensure a comfortable post-retirement life.
Strategically allocating your income can have a significant impact on your long-term savings and financial well-being.
Developing a sound savings and investment strategy is one of the cornerstones of financial success.
3. Diversify your investment strategy
Diversify your investments instead of keeping all your money in one place. Just like planting different seeds, spread your investments across stocks, bonds or real estate. If one investment does not perform well, the others may.
The challenge is that only a few people are aware of the resources available at their fingertips. It is important to conduct research, educate yourself and seek assistance from the right people.
This includes preparing yourself with some facts such as how different investments can have a different lead time for liquidity.
Once you know what you are looking for, the process will become much easier.
Following the age-based investment rule is a great approach to balancing risk and returns, with a minimum investment amount typically ranging from anywhere between Dh1,000 to Dh25,000, depending on your income and goals.
Top 10 global cities for retirement – in pictures
4. Focus on funding your child's education
If you have children, it is essential to consider education as a critical aspect.
Estimate the costs, open an education account and start saving early. Those early savings can make a significant difference and ensure that you are financially ready when your children reach college.
Investing in a dedicated education fund becomes a strategic move, allowing your financial resources to grow over time and ensuring that your child's educational aspirations are well supported when the need arises.
While prioritising your children's academic future, it is important to focus on securing your own financial stability simultaneously.
5. Plan regular check-ins
Life is full of unexpected changes, and your retirement plan should adapt accordingly.
Regular conversations with a financial expert can help you stay on track, ensuring that your retirement savings align with your goals and adapt to market fluctuations.
Schedule regular reviews of your retirement plan with a qualified financial adviser to evaluate your progress towards your goals and make any necessary adjustments.
Monitoring the performance of your investment portfolio and rebalancing it from time to time is important to maintain diversification and manage risk.
By following these steps consciously, you can create a secure and worry-free road to your retirement.
Taru Singhal is head of retail distribution at Zurich International Life
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
UAE currency: the story behind the money in your pockets
Banthology: Stories from Unwanted Nations
Edited by Sarah Cleave, Comma Press
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
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Asia Cup Qualifier
Venue: Kuala Lumpur
Result: Winners play at Asia Cup in Dubai and Abu Dhabi in September
Fixtures:
Wed Aug 29: Malaysia v Hong Kong, Nepal v Oman, UAE v Singapore
Thu Aug 30: UAE v Nepal, Hong Kong v Singapore, Malaysia v Oman
Sat Sep 1: UAE v Hong Kong, Oman v Singapore, Malaysia v Nepal
Sun Sep 2: Hong Kong v Oman, Malaysia v UAE, Nepal v Singapore
Tue Sep 4: Malaysia v Singapore, UAE v Oman, Nepal v Hong Kong
Thu Sep 6: Final
Asia Cup
Venue: Dubai and Abu Dhabi
Schedule: Sep 15-28
Teams: Afghanistan, Bangladesh, India, Pakistan, Sri Lanka, plus the winner of the Qualifier
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
Hili 2: Unesco World Heritage site
The site is part of the Hili archaeological park in Al Ain. Excavations there have proved the existence of the earliest known agricultural communities in modern-day UAE. Some date to the Bronze Age but Hili 2 is an Iron Age site. The Iron Age witnessed the development of the falaj, a network of channels that funnelled water from natural springs in the area. Wells allowed settlements to be established, but falaj meant they could grow and thrive. Unesco, the UN's cultural body, awarded Al Ain's sites - including Hili 2 - world heritage status in 2011. Now the most recent dig at the site has revealed even more about the skilled people that lived and worked there.
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From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
If you go:
The flights: Etihad, Emirates, British Airways and Virgin all fly from the UAE to London from Dh2,700 return, including taxes
The tours: The Tour for Muggles usually runs several times a day, lasts about two-and-a-half hours and costs £14 (Dh67)
Harry Potter and the Cursed Child is on now at the Palace Theatre. Tickets need booking significantly in advance
Entrance to the Harry Potter exhibition at the House of MinaLima is free
The hotel: The grand, 1909-built Strand Palace Hotel is in a handy location near the Theatre District and several of the key Harry Potter filming and inspiration sites. The family rooms are spacious, with sofa beds that can accommodate children, and wooden shutters that keep out the light at night. Rooms cost from £170 (Dh808).
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Aldar Properties Abu Dhabi T10
*November 15 to November 24
*Venue: Zayed Cricket Stadium, Abu Dhabi
*Tickets: Start at Dh10, from ttensports.com
*TV: Ten Sports
*Streaming: Jio Live
*2017 winners: Kerala Kings
*2018 winners: Northern Warriors
More from Neighbourhood Watch:
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Match info
Manchester United 1 (Van de Beek 80') Crystal Palace 3 (Townsend 7', Zaha pen 74' & 85')
Man of the match Wilfried Zaha (Crystal Palace)
RESULTS
Main card
Bantamweight 56.4kg: Mehdi Eljamari (MAR) beat Abrorbek Madiminbekov (UZB), Split points decision
Super heavyweight 94 kg: Adnan Mohammad (IRN) beat Mohammed Ajaraam (MAR), Split points decision
Lightweight 60kg: Zakaria Eljamari (UAE) beat Faridoon Alik Zai (AFG), RSC round 3
Light heavyweight 81.4kg: Taha Marrouni (MAR) beat Mahmood Amin (EGY), Unanimous points decision
Light welterweight 64.5kg: Siyovush Gulmamadov (TJK) beat Nouredine Samir (UAE), Unanimous points decision
Light heavyweight 81.4kg: Ilyass Habibali (UAE) beat Haroun Baka (ALG), KO second round
UAE currency: the story behind the money in your pockets
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
The five pillars of Islam