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No matter what your age, saving money and putting it aside for your retirement may feel like a challenge. But it doesn’t need to be.
There are simple ways to save money and grow your wealth, no matter when you start. Let’s look at some of them.
Retirement factors to consider
The amount you need to have saved by 50 depends on a lot of factors, like your current circumstances and financial goals. While the answer will be different for everyone, knowing where you stand can help you plan.
If your goal is to retire at 50, you could need at least 25 times your planned annual retirement income.
But if you're planning to work beyond that age - potentially for many years to come - your target will be much lower.
For example, if you earn AED 400,000 a year, a good target would be to have AED 2.4 million in your retirement fund and other savings.
Remember, this is a guideline, so don't be put off if you're not close to it. Financial experts mostly recommend saving between 4 and 8 times your annual salary. It all depends on how big you want your retirement nest egg to be.
The HSBC Affluent Investor Snapshot 2025 found that the average amount of savings needed for a comfortable and secure retirement was USD 1.17m (AED 4.2 million)
By the time you reach 50, you may have paid off your home, educated your children and be earning more, so you can save extra until you retire.
Explore: Tips on saving for retirement
Do you want to live your best life in retirement, or are you happy to live frugally? Here are some things to keep in mind:
Read more: Living your best life in retirement
Something else to consider is the rise in multi retirements – where people take planned breaks during their career. These can be for travel, spending quality time with family, pursuing new skills or hobbies, or a passion project.
“Affluent investors are no longer waiting until later life to take their retirement, with some now reimagining more fluid, frequent and intentional pauses in their careers,” an HSBC Quality of Life special report found.
Younger generations are more confident in planning for mini retirements, according to the report, while older Gen X’s are more concerned about their financial obligations and security. A career pause may have lifestyle benefits, but you may need to save more to fund it.
Do you plan on retiring in the UAE? While the lack of income tax can boost your finances, you need to factor in the cost of living. The pension contributions you’re making may not be enough to live comfortably in retirement.
If you’re an expat, you’ll need the right visa. The UAE offers a retirement visa or a golden visa if you meet certain requirements. You’ll need to adjust your retirement planning to meet the conditions, such as retirement income, savings, and owning a property.
You may also want to return to your home country or move somewhere else. Your living costs may go down, but you may be taxed on your pension lump sum and other income. It’s important to bear these in mind when planning your retirement.
Explore: Pensions in the UAE
Even if you only start saving for retirement at 50, it’s never too late to take the first steps. If you feel you’re behind, here are some ways to help you catch up.
Find out more: 10 money saving challenges
Every milestone birthday offers a chance to re-evaluate your savings and retirement planning. You should ideally begin as soon as you start working and check in regularly after that. The more you save, the more you should have when you retire.
Reaching 50 is a good time to take stock of where you are in this journey and what you’ve saved. You can then consolidate what you’ve achieved so far with a fresh focus on reaching your goals.
With a good plan, you can build the retirement you want.
Invest in equities, exchange traded funds, fixed income bonds and mutual funds. Find out more.
Or open a savings account and start saving for your future today.
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