Whether you’re in your 20s or your 50s, it’s important to think about your retirement as soon as you can. If you’ve recently moved to a new country, the chances are that you’re occupied with your current financial situation, making the most of your new salary and spending every penny you have on your property to make it feel more like home. Once that’s done, though, you should reassess your financial situation and put aside some money for your future. We’ve put together some advice on planning for your retirement when you’re living abroad…
Speak with a professional
Perhaps one of the most important things you can do when you’re thinking about retirement is to speak to a financial advisor who can review your current situation and offer you some recommendations and savings products. Especially when living in a foreign country, it can be overwhelming getting to grips with tax laws and incentives – for example, in some countries, you’ll pay less tax if you contribute to a private pension or savings plan, as it reduces the burden on the government. Choose an independent advisor – read their reviews beforehand.
See what you’re eligible for
If you’ve been contributing to the tax system in your new country for a number of years, you might be eligible for a state pension when you retire. Look on the local government’s website for a breakdown of what you could be entitled to and have it double-checked by an officer. It is unlikely that a state pension will be enough to fund your lifestyle, so consider this a “nice to have” rather than something you should rely on where possible; the more you save and put away, the more comfortable a future you’ll have with your loved ones, wherever you are.
Secure a low-risk pension
Next up, it’s time to consider investing in a low-risk pension to futureproof your finances and ensure you have enough money put aside for when you retire. Again, an advisor can help you here – they’ll recommend the most appropriate product for your needs. If you’re looking for a pension in Dubai, for example, there are a number of professionals who can help.
Make life easier for yourself
Though it’s important to make the most of your life every day, you should try to make sensible decisions that won’t impact your future self. For example, if you’re in your 50s, it could be wise to downsize your property or find a place that doesn’t cost an arm and a leg; if you commit to an expensive mortgage too late in life, you’ll have to put in more hours or make sacrifices elsewhere to pay for it. Think with your head, not your heart, when buying.
Pay off any debts early
Finally, review your current debts and consider ways you can lower them. The less money you’re paying out now, the more you’ll be able to put away for a rainy day. Whether it’s car finance, a second home, or a credit card bill, prioritise these; your future self will thank you.