Mike Coady Discusses Retirement Planning In The UAE With GIG Gulf Podcast

Finances are one of the most common causes of anxiety. How much to save, when to start saving, how do I save, they're all questions that the award winning Skybound Wealth team can help you answer.

Mike Coady, a financial expert renowned for his prowess in wealth coaching and financial advisory recently appeared as a guest on the GIG Gulf (previously AXA) ‘Shot of Wellness’ podcast. In this episode, Mike takes a look at topics such as when to start saving, the best form of saving and how to plan your life financially so you won’t have to worry now or in the future.

On how retirement can mean different things to different people, Coady said:

“It's that period of time or period of life where you don't get to have a job, you don't get to have a boss, you get to spend time where you want, when you want, doing what you want with loved ones and family.

For other people it becomes something that hits us hard. We get to the age 60-65 where we can't work, our employers don't want us anymore, our skills have almost become redundant.”

The objectives of someone planning to retire in the UAE in their 50’s are likely to be different from that of a 25 year old. And that’s even before taking into account things such as current and future location, planned retirement age etc.

“When we sit down with clients the most important thing we work out is what they have as objectives in their life, so typically when I'm working with a 50-year-old there is in many respects a panic about what's coming and what is their next stage of retirement. Clearly, when I'm working with a 25-year-old that doesn't own their own house it would be foolish to divert all of their available assets into retirement planning. So, do we need to get an emergency fund? Do we need to get them onto the property ladder?”

It seems there’s always a new fad or ‘calculation’ for how much to save towards your retirement as Coady explains:

“I've heard all sorts of formulas throughout those periods. So often I hear, 10%, 20%, 30% I used to hear this one in the UK many years ago, half your age as a percentage of your wage. When I talk about doing a plan it should be slightly more scientific than that!”

Dividing your income into three boxes is a simple way of ensuring you can enjoy life now without compromising on you future lifestyle. Coady details:

“I always say in simple terms, get a piece of paper and draw three boxes. Box number one is somewhere to live, box number two is your wealth account and some money that you can have in a portfolio that is yours that you can spend whenever you want and on whatever you want, and box number three is what's going to give you an income in retirement.”

With a tax-free income and year round sunshine, it’s easy to fall into the Dubai Cycle, however Coady stresses the importance of retirement planning in the UAE and not treating your time in the region like a holiday:

“Western expats arrive here and believe their salary will go much further compared to their UK salary or their European salary as there’s no tax. They spend as if they're on holiday and of course moving into an apartment you need to get a sofa and curtains etc. All of these things cost money. You're entertaining, you're living a new lifestyle and you burn through that extra cash making friends.”

Seeking Help From An Expert

Skybound Wealth’s team of international wealth planning experts are expats just like you. And having relocated to the region themselves, know all about the obstacles you have to overcome. Arrange a complimentary consultation today to discuss retirement planning in the UAE and ensure you don’t let this unique opportunity pass you by.