One of the most important questions on the minds of many people is how much to save for retirement and how to achieve this goal.
“Everyone’s circumstances are different, depending on when you want to retire, where and what retirement looks like for you,” says George Howard, chartered financial planner at The Fry Group.
“If you have built up savings, pensions from other countries, gratuity payments at the end of service or rental income from properties, these should all be factored in.”
Pension income rarely sustains the lifestyles that employees and their families have grown accustomed to, according to Abdulmohsin Al Omran, founder and chief executive of The Family Office, a GCC wealth management company.
Unless retired employees have other sources of income, they will face financial difficulties and may be forced to make many compromises and sacrifices, he says.
An October survey of 2,312 people by financial services company Bankrate found that about 55 per cent of US adults felt their retirement savings were not where they need to be, with nearly 35 per cent saying they were “significantly behind” and another 20 per cent saying they were “somewhat behind” their goals.
Similarly, a 2020 survey by global consulting company Mercer found that almost half of all UAE residents often delayed preparing for their retirement until they had reached their late 40s and 50s.
It also found that about 45 per cent had no plans to ensure an adequate standard of living after they retire, or planned to work beyond their retirement age to ensure a steady income.
The first step to retirement planning is finding out how much money you will need to live comfortably. This is influenced by your current salary, the retirement lifestyle you want and can afford, and the estimated length of your retirement life, among other factors, says Vijay Valecha, chief investment officer at Century Financial.
Knowing how much money you need to save depending on your current age will set you on the right path to achieving your retirement objectives, he adds.
We asked personal finance experts for their advice on how people can save for a comfortable retirement.
Top 10 global cities for retirement — in pictures
Decide on your monthly savings rate
As a rule of thumb, you should aim to save 20 per cent of your income towards your future. However, even if you start with a smaller amount and increase it as your income rises, that is better than doing nothing at all, Ms Howard says.
“Retirement planning can often be left until the later years as a consideration for many people when, in fact, it is important to start saving as soon as possible to give the best outcome in retirement,” she adds.
Start investing early. For instance, if you decided to invest $1,000 a month at a six per cent rate of return from the age of 20, it will have turned into $2 million at 60. On the other hand, even if you saved $2,000 per month from the age of 40, you would only have $925,633 on hand at the same age, according to Mr Valecha.
Early and frequent investments, followed by consistent returns, can have a big impact on your finances when you approach retirement, he adds.
Questions to ask for retirement planning
When planning for your retirement, you should ask yourself a few questions, Mr Al Omran says.
These include:
- Do I have any financial obligations or debt that I must repay during retirement?
- Do I have dependents who require financial support?
- What lifestyle do I want to ensure for myself and my family during retirement?
The answers to the above will determine the investment goals and the portfolio needed to support the financial needs of the retiree, he says.
Other factors to consider include expected expenses during retirement, time to retirement, desired retirement age, risk tolerance and the long-term effect of inflation on spending power during retirement, Mr Al Omran says.
How to calculate nest-egg value?
Calculate your current expenses to provide a benchmark for your future requirements, Mr Valecha says. For example, if your annual income is Dh250,000 and you manage to save Dh50,000 every year, your current expenses are Dh200,000.
Now work backwards and filter out the expenses that will not be there when you retire, such as mortgage payments and childcare support. However, you’ll incur other costs such as out-of-pocket prescription and medical costs, travel and hobbies.
“Let’s assume the amount that is needed comes down to Dh120,000,” he says.
“Account for inflation, which is the biggest factor you need to consider for calculating your retirement amount. Assuming you retire after 25 years at the age of 60, instead of Dh120,000, you will need close to Dh251,000 [at 3 per cent inflation] a year to maintain your lifestyle.”
Also consider life expectancy. Assuming a lifespan of 85 years, then the Dh251,000 needed at retirement will increase to Dh510,000 a year (at 3 per cent inflation) by the time you are 85 years, Mr Valecha estimates.
“Multiply your current annual spending of Dh250,000 by 25. That’s what your savings will have to be in retirement to allow you to safely withdraw the amount you need every year to live on comfortably for 30 years,” he says.
“This sum allows you to withdraw 4 per cent in your first year of retirement, and then keep withdrawing the same dollar amount adjusted for inflation every year going forward to prevent running through your savings early.”
Post-retirement financial planning requires a realistic mindset, a disciplined lifestyle and prioritisation of spending and savings to achieve the desired goal, Mr Al Omran says.
It is vital to go beyond the savings account and invest the money as a portfolio of different asset classes that align with your goals and needs
Vijay Valecha,
chief investment officer, Century Financial
Where to invest?
The ideal approach to retirement planning is to start saving a portion of the salary at an early age, commit capital gradually to an investment portfolio and reinvest the returns to benefit from the magic of compounding, finance experts say.
However, it is important to think beyond a savings account, Mr Valecha says.
“Investors always have this notion that keeping their money in a savings or fixed deposit account is equivalent to creating an investment plan. But, a regular fixed deposit account will generate an annual interest of about 4 per cent to 5 per cent, while inflation worldwide is running above 7 per cent, which indicates one would be eroding their purchasing power by letting their savings sit in FDs,” he says.
“Thus, it is vital to go beyond the savings account and invest the money as a portfolio of different asset classes that align with your goals and needs.”
In an inflationary environment, staying invested is extremely important to preserve purchasing power, Mr Al Omran says.
“A diversified investment strategy helps nurture wealth, preserve the lifestyle and transfer wealth to the next generation.”
Use an investment account that can be flexible to your changing needs, Ms Howard from The Fry Group says.
For example, if you lose your job, you can stop payments with no penalty, restart payments, add bonuses or lump sums, draw money out with no penalty if an unexpected emergency arises, she says.
If you go to a country where a different form of savings is more tax-efficient, your investments need to move easily with you, with no penalties, she adds.
“Always invest in a well-diversified portfolio of liquid assets, using different asset classes such as equities, bonds and commodities, using different geographical locations. Spend time thinking about the risk you are willing to take with your money,” Ms Howard says.
Individuals should consider a mix of different asset classes, such as savings accounts, fixed deposits, onshore and offshore investment schemes, and equities — via systematic investment plans, property and annuities, Mr Valecha adds.
Regular investments made using the systematic investment plan, or SIP, approach will promote financial discipline and do away with the need for market and investment timing, he says.
Not only does this offer the benefits of dollar-cost averaging, but it also prevents you from spending money you’d rather save.
It’s also important to look at the long-term picture.
“When you’re investing for long-term goals like retirement, it’s important to remember that, after extended periods of negative performance, the stock market has usually recovered its losses and edged higher,” Mr Valecha says.
“Therefore, don’t let the performance of your retirement portfolio from day to day, or even from month to month or year to year, get you too worked up.”
UAE SQUAD
Mohammed Naveed (captain), Rohan Mustafa, Ashfaq Ahmed, Rameez Shahzad, Shaiman Anwar, Mohammed Usman, Mohammed Boota, Zawar Farid, Ghulam Shabber, Ahmed Raza, Sultan Ahmed, Imran Haider, Qadeer Ahmed, Chirag Suri , Zahoor Khan
Company name: Farmin
Date started: March 2019
Founder: Dr Ali Al Hammadi
Based: Abu Dhabi
Sector: AgriTech
Initial investment: None to date
Partners/Incubators: UAE Space Agency/Krypto Labs
Ballon d’Or shortlists
Men
Sadio Mane (Senegal/Liverpool), Sergio Aguero (Aregentina/Manchester City), Frenkie de Jong (Netherlans/Barcelona), Hugo Lloris (France/Tottenham), Dusan Tadic (Serbia/Ajax), Kylian Mbappe (France/PSG), Trent Alexander-Arnold (England/Liverpool), Donny van de Beek (Netherlands/Ajax), Pierre-Emerick Aubameyang (Gabon/Arsenal), Marc-Andre ter Stegen (Germany/Barcelona), Cristiano Ronaldo (Portugal/Juventus), Alisson (Brazil/Liverpool), Matthijs de Ligt (Netherlands/Juventus), Karim Benzema (France/Real Madrid), Georginio Wijnaldum (Netherlands/Liverpool), Virgil van Dijk (Netherlands/Liverpool), Bernardo Silva (Portugal/Manchester City), Son Heung-min (South Korea/Tottenham), Robert Lewandowski (Poland/Bayern Munich), Roberto Firmino (Brazil/Liverpool), Lionel Messi (Argentina/Barcelona), Riyad Mahrez (Algeria/Manchester City), Kevin De Bruyne (Belgium/Manchester City), Kalidou Koulibaly (Senegal/Napoli), Antoine Griezmann (France/Barcelona), Mohamed Salah (Egypt/Liverpool), Eden Hazard (BEL/Real Madrid), Marquinhos (Brazil/Paris-SG), Raheem Sterling (Eengland/Manchester City), Joao Félix(Portugal/Atletico Madrid)
Women
Sam Kerr (Austria/Chelsea), Ellen White (England/Manchester City), Nilla Fischer (Sweden/Linkopings), Amandine Henry (France/Lyon), Lucy Bronze(England/Lyon), Alex Morgan (USA/Orlando Pride), Vivianne Miedema (Netherlands/Arsenal), Dzsenifer Marozsan (Germany/Lyon), Pernille Harder (Denmark/Wolfsburg), Sarah Bouhaddi (France/Lyon), Megan Rapinoe (USA/Reign FC), Lieke Martens (Netherlands/Barcelona), Sari van Veenendal (Netherlands/Atletico Madrid), Wendie Renard (France/Lyon), Rose Lavelle(USA/Washington Spirit), Marta (Brazil/Orlando Pride), Ada Hegerberg (Norway/Lyon), Kosovare Asllani (Sweden/CD Tacon), Sofia Jakobsson (Sweden/CD Tacon), Tobin Heath (USA/Portland Thorns)
Wenger's Arsenal reign in numbers
1,228 - games at the helm, ahead of Sunday's Premier League fixture against West Ham United.
704 - wins to date as Arsenal manager.
3 - Premier League title wins, the last during an unbeaten Invincibles campaign of 2003/04.
1,549 - goals scored in Premier League matches by Wenger's teams.
10 - major trophies won.
473 - Premier League victories.
7 - FA Cup triumphs, with three of those having come the last four seasons.
151 - Premier League losses.
21 - full seasons in charge.
49 - games unbeaten in the Premier League from May 2003 to October 2004.
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
The%20specs
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Dhadak 2
Director: Shazia Iqbal
Starring: Siddhant Chaturvedi, Triptii Dimri
Rating: 1/5
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
Healthy tips to remember
Here, Dr Mohamed El Abiary, paediatric consultant at Al Zahra Hospital Dubai, shares some advice for parents whose children are fasting during the holy month of Ramadan:
Gradual fasting and golden points - For children under the age of 10, follow a step-by-step approach to fasting and don't push them beyond their limits. Start with a few hours fasting a day and increase it to a half fast and full fast when the child is ready. Every individual's ability varies as per the age and personal readiness. You could introduce a points system that awards the child and offers them encouragement when they make progress with the amount of hours they fast
Why fast? - Explain to your child why they are fasting. By shedding light on the importance of abstaining from food and drink, children may feel more encouraged to give it there all during the observance period. It is also a good opportunity to teach children about controlling urges, doing good for others and instilling healthy food habits
Sleep and suhoor - A child needs adequate sleep every night - at least eight hours. Make sure to set a routine early bedtime so he/she has sufficient time to wake up for suhoor, which is an essential meal at the beginning of the day
Good diet - Nutritious food is crucial to ensuring a healthy Ramadan for children. They must refrain from eating too much junk food as well as canned goods and snacks and drinks high in sugar. Foods that are rich in nutrients, vitamins and proteins, like fruits, fresh meats and vegetables, make for a good balanced diet
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
KILLING OF QASSEM SULEIMANI
Generation Start-up: Awok company profile
Started: 2013
Founder: Ulugbek Yuldashev
Sector: e-commerce
Size: 600 plus
Stage: still in talks with VCs
Principal Investors: self-financed by founder
MATCH INFO
Manchester United 1 (Greenwood 77')
Everton 1 (Lindelof 36' og)
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Zakat definitions
Zakat: an Arabic word meaning ‘to cleanse’ or ‘purification’.
Nisab: the minimum amount that a Muslim must have before being obliged to pay zakat. Traditionally, the nisab threshold was 87.48 grams of gold, or 612.36 grams of silver. The monetary value of the nisab therefore varies by current prices and currencies.
Zakat Al Mal: the ‘cleansing’ of wealth, as one of the five pillars of Islam; a spiritual duty for all Muslims meeting the ‘nisab’ wealth criteria in a lunar year, to pay 2.5 per cent of their wealth in alms to the deserving and needy.
Zakat Al Fitr: a donation to charity given during Ramadan, before Eid Al Fitr, in the form of food. Every adult Muslim who possesses food in excess of the needs of themselves and their family must pay two qadahs (an old measure just over 2 kilograms) of flour, wheat, barley or rice from each person in a household, as a minimum.
MATCH INFO
Sheffield United 3
Fleck 19, Mousset 52, McBurnie 90
Manchester United 3
Williams 72, Greenwood 77, Rashford 79
FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
HOSTS
T20 WORLD CUP
2024: US and West Indies; 2026: India and Sri Lanka; 2028: Australia and New Zealand; 2030: England, Ireland and Scotland
ODI WORLD CUP
2027: South Africa, Zimbabwe and Namibia; 2031: India and
Bangladesh
CHAMPIONS TROPHY
2025: Pakistan; 2029: India
Final scores
18 under: Tyrrell Hatton (ENG)
- 14: Jason Scrivener (AUS)
-13: Rory McIlroy (NIR)
-12: Rafa Cabrera Bello (ESP)
-11: David Lipsky (USA), Marc Warren (SCO)
-10: Tommy Fleetwood (ENG), Chris Paisley (ENG), Matt Wallace (ENG), Fabrizio Zanotti (PAR)
FIRST TEST SCORES
England 458
South Africa 361 & 119 (36.4 overs)
England won by 211 runs and lead series 1-0
Player of the match: Moeen Ali (England)
The years Ramadan fell in May
Dates for the diary
To mark Bodytree’s 10th anniversary, the coming season will be filled with celebratory activities:
- September 21 Anyone interested in becoming a certified yoga instructor can sign up for a 250-hour course in Yoga Teacher Training with Jacquelene Sadek. It begins on September 21 and will take place over the course of six weekends.
- October 18 to 21 International yoga instructor, Yogi Nora, will be visiting Bodytree and offering classes.
- October 26 to November 4 International pilates instructor Courtney Miller will be on hand at the studio, offering classes.
- November 9 Bodytree is hosting a party to celebrate turning 10, and everyone is invited. Expect a day full of free classes on the grounds of the studio.
- December 11 Yogeswari, an advanced certified Jivamukti teacher, will be visiting the studio.
- February 2, 2018 Bodytree will host its 4th annual yoga market.
Tomb%20Raider%20I%E2%80%93III%20Remastered
%3Cp%3EDeveloper%3A%20Aspyr%0D%3Cbr%3EPublisher%3A%20Aspyr%0D%3Cbr%3EConsole%3A%20Nintendo%20Switch%2C%20PlayStation%204%26amp%3B5%2C%20PC%20and%20Xbox%20series%20X%2FS%0D%3Cbr%3ERating%3A%203%2F5%3C%2Fp%3E%0A
The biog
Name: Atheja Ali Busaibah
Date of birth: 15 November, 1951
Favourite books: Ihsan Abdel Quddous books, such as “The Sun will Never Set”
Hobbies: Reading and writing poetry
UAE currency: the story behind the money in your pockets
Donating your hair
• Your hair should be least 30 cms long, as some of the hair is lost during manufacturing of the wigs.
• Clean, dry hair in good condition (no split ends) from any gender, and of any natural colour, is required.
• Straight, wavy, curly, permed or chemically straightened is permitted.
• Dyed hair must be of a natural colour
COMPANY%20PROFILE
%3Cp%3ECompany%20name%3A%20CarbonSifr%3Cbr%3EStarted%3A%202022%3Cbr%3EBased%3A%20Dubai%3Cbr%3EFounders%3A%20Onur%20Elgun%2C%20Mustafa%20Bosca%20and%20Muhammed%20Yildirim%3Cbr%3ESector%3A%20Climate%20tech%3Cbr%3EInvestment%20stage%3A%20%241%20million%20raised%20in%20seed%20funding%3Cbr%3E%3C%2Fp%3E%0A
Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now
THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
What is graphene?
Graphene is extracted from graphite and is made up of pure carbon.
It is 200 times more resistant than steel and five times lighter than aluminum.
It conducts electricity better than any other material at room temperature.
It is thought that graphene could boost the useful life of batteries by 10 per cent.
Graphene can also detect cancer cells in the early stages of the disease.
The material was first discovered when Andre Geim and Konstantin Novoselov were 'playing' with graphite at the University of Manchester in 2004.
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
Innotech Profile
Date started: 2013
Founder/CEO: Othman Al Mandhari
Based: Muscat, Oman
Sector: Additive manufacturing, 3D printing technologies
Size: 15 full-time employees
Stage: Seed stage and seeking Series A round of financing
Investors: Oman Technology Fund from 2017 to 2019, exited through an agreement with a new investor to secure new funding that it under negotiation right now.
HOW DO SIM CARD SCAMS WORK?
Sim swap frauds are a form of identity theft.
They involve criminals conning mobile phone operators into issuing them with replacement Sim cards, often by claiming their phone has been lost or stolen
They use the victim's personal details - obtained through criminal methods - to convince such companies of their identity.
The criminal can then access any online service that requires security codes to be sent to a user's mobile phone, such as banking services.
The specs: Fenyr SuperSport
Price, base: Dh5.1 million
Engine: 3.8-litre twin-turbo flat-six
Transmission: Seven-speed automatic
Power: 800hp @ 7,100pm
Torque: 980Nm @ 4,000rpm
Fuel economy, combined: 13.5L / 100km
More on Quran memorisation:
Fight Night
FIGHT NIGHT
Four title fights:
Amir Khan v Billy Dib - WBC International title
Hughie Fury v Samuel Peter - Heavyweight co-main event
Dave Penalosa v Lerato Dlamini - WBC Silver title
Prince Patel v Michell Banquiz - IBO World title
Six undercard bouts:
Michael Hennessy Jr v Abdul Julaidan Fatah
Amandeep Singh v Shakhobidin Zoirov
Zuhayr Al Qahtani v Farhad Hazratzada
Lolito Sonsona v Isack Junior
Rodrigo Caraballo v Sajid Abid
Ali Kiydin v Hemi Ahio
UAE currency: the story behind the money in your pockets
