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While living in the UAEhile living in the UAE provides the luxury of saving more, due to the zero-tax regime, it also leaves expatriates without a plan for their
retirement. The fact is, most expats in the country have not proactively set up a pension as they have gone working in economies with established and often mandated
pension schemes, to a region devoid of them.
WHY AND WHEN?
So why should someone start a pension? The answer is self-evident: because you are going to get old. This is one of the certainties in life, along with tax. In addition, future
governments are not going to be able to look after you.
As soon as you start earning, you should start saving. That may seema conservative approach, but it is should start saving. That may seem a conservative approach, but it is a very sound approach because the greatest way to generate a large sum of money is to compound small amounts when younger, and increase the amounts over a long period of time.
The longer you save for, the bigger the sum when you retire.
THINGS TO EVALUATE One of the first things to consider when setting up a pension fund is the tax regime in your home jurisdiction and what structure to adopt to make
it tax-efficient. Typically, these end up being offshore structures. In this part of the...