Top 5 ways to prepare for retirement

1. Start saving, keep saving, and stick to your goals
If you are already saving, whether for retirement or another goal, keep going! You know that saving is a rewarding habit. If you’re not saving, it’s time to get started. Start small if you have to and try to increase the amount you save each month. The sooner you start saving, the more time your money has to grow. Make saving for retirement a priority. Devise a plan, stick to it, and set goals. Remember, it’s never too early or too late to start saving.

2. Know your retirement needs
Retirement is expensive. Experts estimate that you will need about 70 per cent of your preretirement income – lower earners, 90 per cent or more – to maintain your standard of living when you stop working. Take charge of your financial future. The key to a secure retirement is to plan ahead.

3. Start your own retirement savings plan if your employer doesn’t have one
While UAE laws will ensure that most of us will receive gratuity at the end of our service, get into the habit of saving for a pension plan – or better still, subscribe to one from one of the banks or financial institutions. Over time, compound interest make a big difference in the amount you will accumulate.

4. Urge your employer to start a pension plan
It may not be that difficult – you could initiate a discussion with your HR department on the obvious benefits of such a scheme. It will definitely act a retention tool apart from attracting talent to your company.

5. Consider basic investment principles
How you save can be as important as how much you save. Inflation and the type of investments you make play important roles in how much you’ll have saved at retirement. Know how your savings or pension plan is invested. Learn about your plan’s investment options and ask questions. Put your savings in different types of investments. By diversifying this way, you are more likely to reduce risk and improve return. Your investment mix may change over time depending on a number of factors such as your age, goals, and financial circumstances. Financial security and knowledge go hand in hand.

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