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When we are young and have other goals, such as caring for our families and developing a future, pension saving in the UAE always takes a back seat. However, it is never too early to begin learning about wealth management and to begin saving and spending wisely. The reality is that we have no way of knowing if we can survive long enough to outlive our investments. As a result, deciding on the kind of lifestyle we want to live after we retire is critical. We must add in the cost of living as well as any subsidies or incentives that we might be entitled for while making our plans. To ensure we're properly trained, it's much wiser to be on the side of caution than overcompensate.

While NRIs in the UAE have a strong demand for retirement planning, they have a severe lack of basic financial planning skills. Fortunately, it's never too late to begin saving for your retirement. We've compiled a list of suggestions to assist you in implementing your retirement strategy:

- Start with what you already have

Get a good picture of your current net worth, which is the difference between your savings and your liabilities. Liquid assets, such as cash on hand or assets that can easily be turned to cash, should be included.

- Decide how much money you'll save

When it comes to retirement, most workers would need two-thirds of their working wages. It is recommended that you set aside at least 10% to 15% of your monthly salary for retirement. High-income earners will need to save up to 30% of their income to sustain their quality of living.

- Make a budget

Begin keeping track of your monthly revenue and expenses; this will give you a good view of your spending habits and show you where you can save money.

- Pay off your high-interest mortgage

Loans, deposits, and credit card debts will all derail your savings plans, so make it a priority to pay them off.

- Resist the desire to change your way of life

When your salary rises, it can be enticing to splurge on luxuries, but ‘lifestyle-creep' can eat into your retirement savings. Keep the extras for special events to make sure they don't deplete your savings.

Can you suggest any decent pension schemes for NRIs to invest in and explain the benefits?

NRIs can select from a variety of insurance-based contractual retirement schemes. According to a certified financial advisor at Policy House, they would do a rigorous needs analysis before recommending the best financial option. The biggest advantage is that it encourages disciplined savings against retirement goals. Customers may also take advantage of dollar-cost averaging for a decent strategy.

Which pension plans should NRIs avoid at all costs and why?

Clients must be pragmatic about their expectations for investment returns as well as the chances they are able to take. An opportunity for a double-digit return on investment comes with a certain level of risk. There are no such things as "bad" or "right" pension schemes. It takes time and discipline to build wealth, and you must adhere to your core values to do so.

When purchasing a pension scheme, what are some of the pitfalls and secret fees that NRIs should be mindful of?

When it comes to choosing a pension plan for NRIs, one piece of advice I would give is to be rational about how much you want to save. Pension saving is a long-term investment aim that necessitates consistency. Begin with a small amount of money, such as 5% to 10% of your salary. Start with a three- to five-year plan and work your way up slowly so you can correct your course if desired.

Is it true that the bulk of NRIs neglect the importance of purchasing pension plans? What harm does this cause?

Any of our NRI customers, in our opinion, are more concerned with purchasing life insurance than with pension planning. If life insurance is the first step toward a sound financial strategy, diligent investing is the next step. People must understand that holding all of their assets in cash or a fixed deposit depreciates in value over time due to inflation. As a result, clients need an investment solution that encourages them to invest in the stock market in order to increase their wealth over time.

How can Policy House assist you?

Our financial advisors will help you schedule a successful retirement in the United Arab Emirates. We will assist you with the most appropriate retirement plans for your needs, based on our specialist industry experience of available savings products that can help you meet your pension investing goals.