Retirement Planning

retirement planning

Retirement Planning

Do you know when you want to retire?

Have you thought about what age you want to retire? Maybe you want to take early retirement? Or where you want to settle when you retire? Maybe you want to retire abroad? Or what costs you’ll face in retirement? Or the kind of lifestyle you want to maintain in retirement? Or how you’re going to fund that lifestyle?

If you’re uncertain about any of these questions, you’re not alone!

At what age do people want to retire?

A recent survey revealed American millennials (classified as ages 18 to 37) ideally want to retire at 61 years old, but most have nothing saved. With life expectancy across the globe steadily ticking upward, we’re looking at a couple of decades’ of living expenses in retirement, at least! So millennials are either going to have to get saving, or keep working. And the same goes for everyone, to our own extent.

Are expats planning for retirement?

At Hoxton Capital Management, our research shows that as many as 85% of expats in the Middle East may not be saving for retirement.

Managing Partner, Chris Ball, suggests that, “This could be as a result of expats paying off debts or saving elsewhere – although often it’s down to individuals simply overlooking a stage of life that seems so far in the future. Whatever the reason, expats must view retirement planning and safeguarding their financial future as an integral aspect of making their wealth work for them long-term.

“Many people are used to having their retirement planning effectively handled ‘automatically’ through workplace pension schemes for example, and don’t realise that just isn’t the case in the Middle East.

“For a lot of younger people, pensions just aren’t exciting enough, the prospect of steady returns compounding for 25 years doesn’t motivate them to action.”

Ok. What is retirement planning?

Retirement planning is long-term financial planning with the specific goal of growing and protecting your wealth so that you have the financial freedom in retirement to live the kind of life you want.

Making a retirement plan starts with answering the questions posed above, and working backwards to your current financial situation in order to set a strategy. But there are many aspects to consider other than implementing a savings program and managing your assets. There are macroeconomic factors to consider, such as inflation, and changes to your current situation to keep up with, such as an expanding family (or divorce!), or being an expat for a significant amount of time.

What kind of things does a retirement plan look at?

Typically, a retirement plan will look to build up future income streams, improve returns on your current investments and help you protect your wealth through management of your future tax obligations.

Retirement income could come from any number of sources, including rental income from property, pensions, systematic investment plans (SIPs) in mutual funds, dividend plans, fixed deposits, and tailored retirement investments such as health insurance, Individual Retirement Accounts (IRAs), annuities, and the like.

Do you want help making a retirement plan?

Our financial advisers are experienced in helping expats plan for retirement. Get in touch to discuss our your retirement plan.

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Alan Herbert

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