A comfortable retirement doesn't just happen to you

It may sound like a long way off for some, but retirement is something we all need to think about, especially if you are planning on doing it early. While living in the UAE has multiple benefits, it is still developing its pension provisions and retirement offerings for residents.

- JUSTIN HARPER

Mike Coady, CEO of Skybound Wealth and long-time UAE-based adviser to global expats, puts it bluntly: “There’s no automatic pension scheme for most expatriates. No safety net. No monthly cheque arriving once you've clocked out of your career. That means your financial future depends entirely on you, and how early and wisely you start planning. If you want security later, you need to build it today.”

While new government-backed schemes and changes to retirement planning have been announced in recent years, there is still a strong need for residents to put in place their own retirement savings plan. Most private companies offer an End of Service Gratuity (EOSG), a lump sum payout based on years worked and last basic salary. But this isn’t considered enough money to comfortably retire on. So what can you do?

Start saving, and start now

One of the biggest mistakes is delaying the start of retirement planning. “Many people view it as a distant goal and assume they can think about it later,” said Raji Kaippallil, the founder of financewithRaji. “But the earlier you start saving and investing, the less you need to set aside each month - and the easier it becomes to reach your target, thanks to the power of compounding.”