Expat pensioners unprepared for Emirati retirement
Because of a lack of proper understanding and the promotion of viable options such as the (Qualified Recognised Overseas Pension Scheme), 90% of UAE expats are alarmingly unprepared for overseas retirement and are set on a path often tread by many of today’s impoverished expat pensioners.
Emirati have always shown a preference for an international property market that once proved understandably popular, but with just 17% opting to invest in real estate, 15% in the stock market, 11% in jewellery and gold and 10% thinking about pensions, one thing is certain.
Consumer confidence in any of the given markets is low, which is a shame given the benefits of contributing to a pension plan early on in your life. It’s thought that the more familiar is competitive because of the regulation that seemingly turns the wheels of global finance.
But expat retirees are warned that allowing fear of the unknown to deter them from multi-currency accounts and even more rewarding yet lesser known investment options such as the QROPS (Qualifying Recognised Overseas Pension Scheme) is diminishing their comfort levels in retirement.
But contrary to the findings of Friends Provident International’s survey, the aforementioned QROPS is not only tried, tested and proven, it’s also escalating in popularity and at something of an unprecedented rate; 10,000 British expats currently transfer to and invest in a QROPS each year.
UAE-based expats have always drawn criticism for failing to adequately provide for their retirement, but many experts agree that the situation would undergo substantial change if greater understanding was promoted via the services of IFAs (independent financial advisers).
By Anthony Standring
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