UAE Expats Saving for the Future

Zoe answers some questions compiled by Dubai Eye. The interview was aired on during this summer. 

 

During your time here, what sort of trends have you seen, regarding UAE expats saving for the future; are we getting better or worse?

 

I think the UAE symbolizes a region for expats looking for greater financial rewards and new opportunities. Since the difficulties of 2008 I believe people have more faith and security in their jobs and recognize that they need to be saving for their future. 

This region is seen to provide excellent opportunity for career-oriented expats who can earn a salary significantly higher salary than they could in their own country. 

Working in the UAE and benefiting from high salaries is providing many individuals with a window of opportunity to plan constructively and provide financial security for their future.  

 

How do you feel the Emirates compares to other countries, when it comes to long-term saving?

 

Unlike most major financial centers, the UAE doesn’t offer a government-sponsored pension scheme such as Singapore’s Central Provident Fund (CPF) and Hong Kong’s Mandatory Provident Fund (MPF).  In the western hemisphere most people are used to their employers providing long term savings vehicles. 

Approximately 90% of residents in the UAE are expats. Most are from countries where these sort of benefits are the norm. 

British ex pats for instance are used to saving for their future via a pension plan arranged by their employees and if they move abroad these pensions are frozen not allowing the individual to made further contributions. Therefore an independent personal pension plan will provide the portability to enable a client to save for their future where ever they choose to work.  

 

For people who haven’t got any savings plan in place, how would you suggest they start? 

 

Individuals should always start by taking responsibility for their future and admitting to themselves that they have to provide for themselves, and that no one else is going to do it. 

A good start is to look at your monthly budget plan and see what your outgoings are and what is available to put away for the future.  

It is essential to ensure that a proportion of your savings are put aside for possible emergencies. Once this is achieved medium and longer term plans can then be established... 

There are some fantastic financial solutions for ex pats available offshore. The plans can be flexible and cater for many different savings needs be it retirement, children’s education, buying a home or just general saving...  

 

It is also prudent that should an unforeseen circumstance happen such as a critical illness or accident that you have enough provision put in place to protect you and your family adequately.

 

A recent survey by HSBC highlighted that those individuals who have seen a financial advisor are better off financially than those who haven’t. 

 

Basically my goal as an advisor when working with CLIENT IS TO ENSURE THAT WHEN THEY LEAVE the UAE is that they have enough financial provision put in place to help them achieve their goals.

You can contact Zoe Turner on 0558695673