Guardian Wealth Management says despite earning higher salariesand not paying income tax, many expats struggle to put away money each month
A lack of savings, poor financial discipline and no long-term plans are among the biggest worries facing expats in the UAE, according to Guardian Wealth Management.
Despite earning higher salaries than they would back home and not paying income tax, many people struggle to put away money each month or simply neglect the need for savings all together, the company said in a statement.
Experts at Guardian Wealth Management estimate that individuals could be jeopardising as much as AED330,500 in savings over five years, which is the average length of time an expat stays in the UAE.
“Living and working in the UAE allows people to live a certain lifestyle and unfortunately savings can often be forgotten about,” said Gemma Frankland, head of global partners at Guardian Wealth Management.
“Although there can be a lot of demands on your salary, from school fees, car payments, it is important to plan for the future.
“If you are here on a fixed-term contract, or only plan on staying for a few years before returning home, possibly to a lower salary, it is important to use your time in the UAE to save as much as you can for the future by putting money into a suitable savings plan.”
She said it is often only after a major change in circumstances, such as the loss of a job or making the decision to relocate, that expats realise the impact years of bad financial planning can have on the rest of their life.
“The earlier people start saving the better. For your long-term goals such as retirement, you should try to put away 20-30 per cent of your monthly salary,” said Frankland.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.