Your Money: Now's the time to start saving for the future

I am a 32-year-old business executive who has worked in the Middle East for ten years. I have a generous salary and fantastic job prospects but, despite having lived and worked across the region for a substantial amount of time, I do not have any savings of note. Recently it struck me: I am not getting any younger and I have not even considered planning for retirement — until now!

Unfortunately, the notion of ‘living for the moment' with little or no regard for future solvency is not uncommon amongst many people. While there is absolutely nothing wrong with enjoying life, the longer you forge ahead without a financial or retirement plan in place, the longer you will rue the missed opportunity to take decisive action when you were best able to.

Now is the time to set some real targets; as you rightly acknowledge, retirement may not be as far away as you think. Your situation offers plenty of cause for optimism, however. Not only does it sound like you are successful in your chosen profession and about to enter your prime earning years, but you have become aware of the need to plan ahead.

Quality of life

Start with a simple question — what quality of life do I want when I retire? Take a long, hard look at your current and future projected income and determine what your requirements are.

Remember, you can only get to where you want to go when you have a thorough understanding of how to get there. Saving for the future needs to be workable in the long term, so don't overstretch yourself.

Consult with an independent financial adviser and work out a financial plan that suits your specific needs.

There are a number of ways to save for retirement, but the key is always to accumulate enough money to provide you with a comfortable retirement income.

This should not just be geared towards mere survival, but aim to support the lifestyle to which you have become accustomed to — or aspire to!

As a UAE expat, you could consider saving into a financial product that will provide you with the flexibility to increase your contributions as you require and also allow you to continue contributing into it should you leave the country.

You may want to save on a monthly basis from your salary, which will provide you with the discipline of keeping to a good savings regime. Many financial products will also enable you to add extra funds, for example from bonus payments, to top up your savings.

The earlier the better

The earlier you start saving into a financial product, the better.

If you leave it until you are 55, and you want to retire at 60, it is going to be extremely hard, if not impossible to accumulate the money you need.

Whatever savings plan you choose, it is important to consider the level of risk that you wish to take on. Speak to an independent financial adviser to determine your comfort levels.

A certain degree of risk isn't necessarily a bad thing at your age, and can lead to higher returns without dramatically compromising your future.

Safer options

As you get older, it is undoubtedly wise to shift strategy to focus on safer options that can better withstand any economic turbulence.

Consider all your options and then consider them again.

There are a huge array of savings plans to choose from in the UAE and it is important to be completely aligned with your individual circumstances.

Get it right and your future will be assured.

The writer is Business Services Director, Nexus Group. Views expressed here are his own and do not reflect that of Gulf News. if you have any questions please email it to advice@gulfnews.com