Seven Factors to Consider when Planning your Retirement

“If you want to retire young and retire rich, it is very important that your money be like a bird dog, going out every day and bringing home more and more assets.”

— Robert T. Kiyosaki

Not everyone has the opportunity to retire young, but there are ways in which you can retire rich and be comfortable during the times you won’t have a regular salary coming in. 

You might be in your late twenties, early thirties, trying to start a family, or just focused on building a career for yourself. You have been saving for your next house, a bigger car, or your kids’ further education. But this does not mean that you should neglect your needs for your future. 

This is where your retirement plan comes into play. A happy retirement is one where you don’t have to worry about your finances and when you are prepared for any unforeseen circumstances – so no matter what the incident, you will always have a safety net to fall back on.

What is the right age to start your retirement planning?

We say, it’s never too early! 

All your savings are for your future, so why not plan to save a little more along the way to help you when you retire? Who says you have to think about your retirement only when you’ve crossed 40? The retirement age in the UAE is 65, but if you create a solid enough retirement plan, you can even stop working by the time you cross 45.

“The question isn’t at what age I want to retire, it’s at what income.” 

— George Foreman

So how do you start with retirement planning?

We are here to guide you.

Keep these factors in mind when you feel like you are ready to start planning for your retirement.

Factor 1: It may never be too early, but it’s also never too late to start 

“Always remember that your future is determined by what you do today, not tomorrow.”

— Robert T. Kiyosaki

This statement rings true for multiple aspects in your life, and it’s even more important for your retirement. Just like how there is no right retirement age, there is also no right age to start with the retirement planning process. If you are starting out early, you have more of an opportunity to spend and you can focus less on savings. If you are starting late, all’s not lost. You just have to make sure you keep enough saved to last you during your retirement.

Factor 2: Create a budget for your retirement plan

It is imperative that you have a proper budget planned when you start with your retirement planning. Keep a detailed account of your daily, monthly and annual expenses, and keep inflation in mind when you are creating your budget. 

This budget will determine how much money you need to have saved so that you can have a happy and comfortable retirement.

And as we like our clients to say when they retire, let the relaxation begin! 

Factor 3: Plan out your years before you retire based on your budget

Now that you have a clearer idea of the kind of money you need, you will get a better understanding of how much longer you’re going to have to keep working so that you can save enough. There are plenty more sources of income besides your monthly salary and quarterly bonus. Focus on investing and saving smartly. 

Our team of investors are ready to help you through this process so you can make smarter investments and even greater returns.

Factor 4: Plan out your investments and identify your risk appetite

Your financial advisor and investor might recommend various investment planning methods but that doesn’t mean they are right for you. You need to understand what your risk appetite is, how aggressively you’re willing to take on various investment opportunities, how safe you’re going to act, what your expected returns are, and so on. 

Always remember that it is your retirement plan and these are your finances. You should only invest in what you are comfortable with and the amount you are willing to invest. Nothing more, nothing less. 

Factor 5: Figure out alternative sources of income post-retirement

Just because you do not have a job does not mean that you cannot generate income. Use your assets to your advantage and turn them into sources of regular revenue. This step will guarantee a safer, more comfortable, and a happier home retirement for all parties involved.

Have a piece of land just sitting around? Lease it. Did you invest in some real estate some time ago? Rent it out. Does your job have pension plans? Great! Get them.

Planning for alternative sources of income for when you retire will help you feel more at ease once you retire. 

Factor 6: Get the most useful insurance coverage

There is no denying that growing older comes with its own set of health problems. And medical bills have a tendency to pile up over time. You should make sure you get the most suitable insurance plan that covers most, if not all, possible medical procedures and treatments you might have to undergo once you retire. 

How do you find that out and preemptively plan for it? It’s easy. 

• Get a full body check up
• Speak to your doctor and discuss your results to find out any health issues that could arise in your future
• Get a thorough understanding of your family’s medical history to know more about any genetic disorders that you might have to deal with

Factor 7: Learn more about any tax saving schemes

You do not want to pay more taxes when you retire and you definitely want to save up more while you are still working. There are a lot of retirement planning schemes that are non-taxable for your income, so you should speak to your financial advisor and get more insight on this topic. They will be able to work with you to find out the best way you can make the most out of your income and retirement plan.

Life’s not over when you retire – in fact it’s your chance to have a fresh, relaxed start! 

So in the words of the evergreen Warren Buffet, “Someone is sitting in the shade today because someone planted a tree a long time ago”.

Thank you for reading.