Retirement is termed to be the golden years of a person’s life. It is that phase where the daily routine quiets down and is free of any big commitments. Everyone who gets to this stage would typically have a lot of free time that they will use to fulfill their dreams the best they can. However, some end up here with no plan in mind. It could cause potential financial strife if overlooked. This blog post will list the factors to consider when choosing a retirement plan in Uae.
What matters most while choosing a retirement plan?
1 – Have a budget for the plan
Choosing a retirement policy is only secondary to the budget. Know the flow of income and expenses to arrive upon a certain retirement corpus. This money will help you in sustaining your life. Once you have collected all your expenses, then it will lay a solid ground for planning your retirement fund.
2 – Return more than the Inflation rate
Investing your money is just not enough to secure the find for the long term. The biggest factor some might overlook is the inflation rate. It can decrease the real value of the investment amount and hence it is wise to choose plans that help you stay ahead of inflation. Another thing you can do is to get advice from a professional who does financial planning in Dubai.
3 – Choose a sufficient retirement fund
Once you know about your financial needs, the next step is choosing a fund that would be suitable to meet your retirement goals. A good plan would provide a regular income and support the family after the earning member has passed away. Therefore, factor in the after-tax return and the fund amount before choosing a policy.
4 – Know your risk profile
Every person would have a different mindset as to the risk they can handle. Some would be immune to high risk, while others may be interested in earning a stable income with less risk. Decide the level of volatility and the return that you get from the investment. Your financial planner will help you choose the best insurance in Uae that will fetch you good returns with a moderate amount of risk.
5 – Plan your retirement age
Planning to retire once you are 45 years of age can be different from when you do that at 60-65 years of age. If you plan to take early retirement, you need to ensure that the fund can last for a decade or two. But the scenario can be different for those who choose to take a late retirement. In this case, the investment amount will be less since the number of years left to survive is low.
6 – Terms & Benefits of the plan
Some policies have attractive benefits like international coverage, riders, and premium payment modes. Consider everything and analyze whether this plan would fit the needs of your retirement goals. For example, plans with worldwide coverage would be the best Investment in Uae for expats.
It is always a prudent decision to do proper financial planning from an early age to ensure a bright future. Moreover, having the assistance of a professional can help choose suitable term insurance for NRI that will be instrumental in achieving the retirement goals.
