THE CONSEQUENCES OF DELAYING RETIREMENT PLANNING
Taking an example of a working person in their 30’s would be saving as much as they can till 55, considering the average cost of living in any major city abroad would be INR 88,792 per month(USD 1206.234). The average salary of the person abroad would be INR 1.47 lakh monthly abroad (USD 2,004).
If the person continues to work and accumulate funds till retirement, taking a 5% annual inflation in account, in the worst case scenario that person would earn INR 4.99 lakh (USD 6,786) until they turn 75. The average life expectancy of an Indian abroad is 65, but with better healthcare one can easily live to see at least 75.
On the other hand, in the case of people who take an NRI retirement plan, every year the investment would increase by 5%. This would leave the person with retirement funds upto INR 7.67 crore (USD 10,042,130). Thus, the better you do in your young adult life, the bigger returns you can expect here.
If you start soon you could earn INR 1.12 lakh (USD 1,526) monthly once it is matured. But if you end up delaying your saving for retirement by just five years, you would end up saving an additional INR 55,487 (USD 754) every month to achieve a similar return on investment and a monthly income of INR 4.99 lakh (USD 6,786). A 5-year delay can easily cost you up to INR 1.33 crore (USD 180,878) extra. So start early and invest in a legitimate retirement solution today.
RETIREMENT PLANNING FOR EXPATS IN THE UAE
The UAE is a good destination for expats to retire and reap the benefits of their hard work. The warm, year-round climate, stable economy and reasonably affordable luxury lifestyle are just a few reasons why it is a good option for hanging the gloves and settling down once and for all. There have been many changes in the retirement visas. However, there might be a lot to consider when you plan on retiring in the UAE.
It is always crucial to plan things out especially when you are an expatriate living – and probably working – in the UAE. Here are a few things you would want to consider for your retirement in the UAE:
1. LEAVING A WILL
One should always write a will in every country they hold assets in. The UAE is expat-friendly and treats foreigners’ assets with respect and sympathy, to avoid any complication after the death of the person. Without a will, the Sharia law will favour the male line, which can overrule the laws of your home country.
2. MAKE SURE YOUR CHILDREN ARE TAKEN CARE OF
In the UAE, there may be many issues over guardianship when a parent dies without leaving any specific details in the will. Most of the time, other family members are contacted and are assigned guardianship. So specify proper guardianship.
3. CHOOSE YOUR INVESTMENT WISELY
Choosing the right plan for your retirement can be challenging at first, but with the right help, research and advice you will be able to choose a plan best suited for your retirement needs.
Before investing in an NRI retirement plan, make sure you go through all the pros and cons and any potential loopholes of the scheme. But you have to be clear about your future plans to set forward a proper and stress-free retirement. A legitimate retirement plan is a key to financial freedom for your tomorrow. So, move towards a future backed by the right plan.