TO FUND RETIREMENT

ment and the amount expatriates actually need has been a subject of debate in recent years. In the past, residents turned to financial advisory companies to top up their pension pots. However, many were mis-sold poor performing long-term savings and investment plans riddled with high fees and hidden charges.

Regulations proposed in 2017 by the UAE Insurance Authority and the Central Bank of the UAE to clamp down on mis-selling are yet to be imposed.

The GCC’s gratuity system may evolve from a defined benefit scheme to a defined contribution scheme that places the onus on the individual to save for their future

When it comes to where residents want to retire, 62 per cent favour their home country, according to the study. While 18 per cent of respondents said they would retire in the Emirates, the poll was carried out a month before the UAE unveiled five-year retiree visas for expatriates over the age of 55.

Many residents also expect to delay retirement. While a 2017 survey from Old Mutual and Quilter Cheviot found 43 per cent expected to retire between the age of 50 to 55, this dropped to 35 per cent in the 2018 poll.

Nearly half said they expect retirement to last between 11 and 20 years. However, with some living more than 40 years after the traditional retirement age of 60, independent personal finance communities such as SimplyFI. org and DeadSimpleSaving. com advocate a low-cost investment approach.

Steve Cronin, the founder of DeadSimpleSaving.com, said: “More and more people are becoming aware that lowcost, passive index-tracking ETFs are the best investment funds for residents.”