Question: My husband and I have enjoyed a very successful 20 years working in the UAE but are nearing retirement and plan to head back to the UK to live out our old age, although we still hope to do some part-time work. However, we have brought up a family in the UAE and we wish to continue to support our children financially once we've gone. How do we keep money in the country, which we still have control of, once we leave?
Answer: Both you and your husband are part of a growing number of people who still view themselves as financially responsible for their children regardless of their age.
Last month a survey of those with Dh5.8 million in investable assets by Barclay's Wealth showed that 98 per cent of those polled in the UAE said they considered themselves financially responsible for their children, with 91 per cent adding that they planned to continue to work into their old age.
The idea of working through retirement and continuing to support an adult family is a relatively new phenomenon — traditionally a family's financial burden passes to the younger generation once the parents are too old to work. It is a shift in thinking that comes with people being able to enjoy longer, healthier lives, along with a growing body of evidence that shows working in old age is beneficial for both physical and mental health.
Your predicament is how to keep cash in the UAE once you no longer live and work here.
Once you hand in your notice at work then your employer, or the local person who sponsors your business, will contact your bank where your salary is paid into to let them know you no longer work there, especially if you have loans and credit cards.
The bank will take stock of your financial commitments; savings, loans, credit cards, mortgages, etc. and will request payment of anything outstanding.
Banks are legally allowed to freeze your bank account while these final transactions are being processed and cleared.
However, this is only applicable to the account your salary goes into and a number of UAE banks offer non-residents the chance to hold deposit and savings accounts, including fixed deposit accounts.
Having such an account will allow you to keep your money in dirhams if you so choose. You will also be able to transfer funds to other UAE accounts, perhaps those of your children, as well as internationally.
Most banks offer facilities that allow you to manage your money online, so even when you are back in the UK you can keep track of your funds.
One thing you may want to consider, however, is interest rates and whether a UAE deposit or savings account offers you the best rates. The alternative, with the help of an independent financial adviser, is to set up an offshore account or fund into which you can transfer your current UAE-based savings. This also has the advantage that you can add to it with money earned in the UK through your part-time jobs. These accounts and funds are normally only available in US dollars, UK pounds or euros, so you will need to work out how much you could lose or gain by moving your dirhams, depending on the currency exchange rate when you transfer the funds.
The writer is is a Solicitor and Senior Estate Planning Consultant with Nexus Insurance Brokers. Opinion expressed are his own and do not reflect that of Gulf News. if you have any questions, please email to advice@gulfnews.com.
