How To Save For Retirement When 50 And Above?

Age 50 is a great stopping point to sit down, review and plan ahead for one’s financial future.

If you have not planned for your retirement till now due to various commitments, don’t be disheartened! now is the time, when the resources like time, money and experience are more than willing to help you plan and save for your retirement.

Around 50 years of age, an individual is at the top of his or her professional abilities, benefiting from the years of experience resulting in increase of income.

Most of his or her personal responsibilities are more or less over, as children would be out of college, ready to propel their own future and goals like owning a home, starting a business, touring the world are more or less achieved, resulting in more disposable income.

More income and less expenses is a wonderful recipe for a successful retirement savings.

While savings is essential to build a nest egg, wise investment of the savings is crucial to negate the risks like inflation and currency. You should carefully choose a good retirement savings plan which takes into account the following aspects;

Characteristics of a Robust Reirement Plan

Characteristics of a Robust Retirement Plan

  • Low Premium Payment Term : The premium payment period should be between 5 years to 10 years and no more. A plan with longer premium payment term comes with higher surrender charges, if the plan has to be stopped earlier than planned.
  • Security : When you are looking for a company to protect and grow your wealth over a number of years, do all the due diligence necessary and choose the company which has solid foundations, giving you the confidence that your money is in safe hands.
  • Favorable Currency : As an Expat in UAE, your retirement plan has to take into account the currency exchange risk, particularly Expats from India, and other South East Asian countries, whose currencies are falling down in value.

Although Indian expats prefer investing in Pension plans in India with Life Insurance Corporation (LIC), HDFC Life, SBI Life, Mutual funds and other pension plans, they would be better off, investing in Retirement or Pension plans in UAE in US Dollar, protecting them from currency depreciation risk.

Click here to know Why NRIs should invest in a Dollar based Life Insurance and and Investment Plan in UAE.

  • Diversified : The investment has to be diversified into various asset classes, industries and geographies to ensure that the portfolio is balanced and is not exposed to extreme volatility
  • Flexibility : The retirement plan should be flexible enough to adapt to the possible changes in your financial situation, allowing increase or decrease of the premiums, premium holidays, and allowing partial or premature withdrawal if you have to stop the plan due to loss of job, decrease in income, or due to health reasons.
  • Tax Efficient : It is always advised to choose an Offshore plan protecting your income earned as an Expat in UAE, shielding you from the tax implications in your home country and allowing you to decide where and how the proceeds from the maturity of the plan are paid.
  • Transparent : All savings and retirement plans have charges and other important caveats, it is extremely important to read the terms and conditions of the plan with your financial adviser, and demand satisfying answers to all the conditions before signing up for the plan.

Your financial adviser plays a crucial role in helping you choose and manage your retirement plan, so be very careful on choosing your financial adviser. Obtain as much as information as possible about his back ground, his experience, qualification and  seek testimonials of his past clients and other relevant information.

To help you choose and manage the most suitable retirement plan, based on your current financial situation and goals, call me on +97155-7701792 or write to me for a Free and Confidential Financial Review and Recommendation. 

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