How To Save For Retirement As An Expat In The UAE

There are many things that attract expatriates to the UAE. This dazzling gem in the Arabian Gulf boasts stretches of coastline with pristine beaches and crystal-clear water, mountainous areas for hiking and all types of extreme sports. Fine dining becomes a regular event for many, and there’s rarely a night of the week that doesn’t have some form of entertainment booked in. The cherry on top is that this lifestyle comes with a tax-free income.

Cautionary tales of others frittering away their generous tax-free salaries are shared with newcomers almost as soon as they touch down: heed them. It’s easy to get swept up in the excitement of the expat lifestyle, but it’s just as easy to plan and enjoy everything the UAE has to offer while growing your savings.

Make a commitment to your future self

Retirement may seem a long way off, and if you don’t get ahead of the game, it might be a whole lot longer than you think. The age of retirement in Australia is 66 years and has crept up to 68 in the United Kingdom. It’s tempting to believe that your finances will take care of themselves – but they won’t.

A quick google search will give you access to a retirement calculator that estimates how much you’ll need to save to achieve a relaxed and enjoyable lifestyle once you stop working. If you’d like that to be any time before the age prescribed by your country’s government, there’s no better time to start saving. Do it for your future self.

Saving Bonds

For as little as AED100, citizens, and expatriates are eligible to purchase savings bonds in the UAE. The company is wholly owned by The Investment Corporation of Dubai, the investment arm of Dubai government.

It is Shari’a compliant and offers a low-risk way for people to increase their savings with annual profit which is higher than what major banks typically offer. There’s no upper limit to how much can be invested in savings bonds – the sky is the limit. This is a great route to take when planning for retirement.

Leave it to the experts

If you’re a newcomer to the region and have no idea where to start or have been living here for a decade and need help getting your spending under control, it’s time to call in the experts. Seeking out the help of a professional is the best way to discover the best avenues for maximising your earnings during your time in the UAE. A lot of well-meaning people will offer financial advice, however, to protect yourself from falling victim to a scam or scheme, it’s best to enlist the services of a reliable source.

Your financial planner will map out your goals for the future, including an expected retirement date, and evaluate your current financial health. Recommendations will be made in line with what you want to achieve, and once selected, these will be continually monitored over time.