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
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
Results
6.30pm Al Maktoum Challenge Round-3 Group 1 (PA) US$100,000 (Dirt) 2,000m, Winner Bandar, Fernando Jara (jockey), Majed Al Jahouri (trainer).
7.05pm Meydan Classic Listed (TB) $175,000 (Turf) 1,600m, Winner Well Of Wisdom, William Buick, Charlie Appleby.
7.40pm Handicap (TB) $135,000 (T) 2,000m, Winner Star Safari, Mickael Barzalona, Charlie Appleby.
8.15pm Handicap (TB) $135,000 (D) 1,600m, Winner Moqarrar, Fabrice Veron, Erwan Charpy.
8.50pm Nad Al Sheba Trophy Group 2 (TB) $300,000 (T) 2,810m, Winner Secret Advisor, William Buick, Charlie Appleby.
9.25pm Curlin Stakes Listed (TB) $175,000 (D) 2,000m, Winner Parsimony, William Buick, Doug O’Neill.
10pm Handicap (TB) $135,000 (T) 2,000m, Winner Simsir, Ronan Whelan, Michael Halford.
10.35pm Handicap (TB) $175,000 (T) 1,400m, Winner Velorum, Mickael Barzalona, Charlie Appleby.
Results
5pm: Maiden (PA) Dh80,000 (Turf) 1,200m, Winner: ES Rubban, Antonio Fresu (jockey), Ibrahim Aseel (trainer)
5.30pm: Handicap (PA) Dh85,000 (T) 1,200m, Winner: Al Mobher, Sczcepan Mazur, Ibrahim Al Hadhrami
6pm: Handicap (PA) Dh80,000 (T) 2,200m, Winner: Jabalini, Tadhg O’Shea, Ibrahim Al Hadhrami
6.30pm: Wathba Stallions Cup (PA) Dh70,000 (T) 2,200m, Winner: AF Abahe, Tadgh O’Shea, Ernst Oertel
7pm: Handicap (PA) Dh85,000 (T) 1,600m, Winner: AF Makerah, Tadhg O’Shea, Ernst Oertel
7.30pm: Maiden (TB) Dh80,000 (T) 1,600m, Winner: Law Of Peace, Tadhg O’Shea, Satish Seemar
The specs: 2018 Ford F-150
Price, base / as tested: Dh173,250 / Dh178,500
Engine: 5.0-litre V8
Power: 395hp @ 5,000rpm
Torque: 555Nm @ 2,750rpm
Transmission: 10-speed automatic
Fuel consumption, combined: 12.4L / 100km
The%20specs
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BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
Various Artists
Habibi Funk: An Eclectic Selection Of Music From The Arab World (Habibi Funk)
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
NYBL PROFILE
Company name: Nybl
Date started: November 2018
Founder: Noor Alnahhas, Michael LeTan, Hafsa Yazdni, Sufyaan Abdul Haseeb, Waleed Rifaat, Mohammed Shono
Based: Dubai, UAE
Sector: Software Technology / Artificial Intelligence
Initial investment: $500,000
Funding round: Series B (raising $5m)
Partners/Incubators: Dubai Future Accelerators Cohort 4, Dubai Future Accelerators Cohort 6, AI Venture Labs Cohort 1, Microsoft Scale-up
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Global state-owned investor ranking by size
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THE BIO
Favourite holiday destination: Whenever I have any free time I always go back to see my family in Caltra, Galway, it’s the only place I can properly relax.
Favourite film: The Way, starring Martin Sheen. It’s about the Camino de Santiago walk from France to Spain.
Personal motto: If something’s meant for you it won’t pass you by.
THE SPECS
Engine: 1.5-litre turbocharged four-cylinder
Transmission: Constant Variable (CVT)
Power: 141bhp
Torque: 250Nm
Price: Dh64,500
On sale: Now
The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
RIDE%20ON
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THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
