Pension management for UK expats in Dubai
When it comes to planning for retirement, UK expats in Dubai need to be extra careful. This is because there are a number of unique challenges that come with being an expat in Dubai, which can make it difficult to save for retirement. Expats should consider consulting a Financial Advisor in Dubai to help them avoid making mistakes.
With that in mind, here are three of the biggest pension mistakes made by UK expats in Dubai:
- Not Saving Enough
One of the biggest mistakes made by UK expats in Dubai is not saving enough for retirement. This is often due to the high cost of living in Dubai, which can make it difficult to put away enough money each month.
- Not Reviewing Their Pension Regularly
Another mistake made by UK expats in Dubai is not reviewing their pension regularly. This is a mistake because circumstances can change over time, which could impact your ability to retire when you want to.
- Not Diversifying Their Investments
Lastly, another mistake that UK expats in Dubai make is failing to diversify their investments. This is a problem because it means all of your eggs are in one basket, so to speak. So, if something happens to one investment, your entire retirement savings could be at risk.
Finding the right pension provider for UK expats in Dubai
There are a few things to consider when choosing a pension provider for UK expats in Dubai. First, you’ll need to make sure that the provider is regulated by the Financial Conduct Authority (FCA) in the UK. This will ensure that your pension is safe and secure. Secondly, your Financial Advisor must be regulated locally in the UAE. Finally, you’ll need to think about where your pension will be invested. Some providers only invest in UK-based assets and often only in Sterling, while others invest globally, adding diversification and the option of exposure to multiple currencies. Make sure to choose a provider that offers the investment options you’re looking for.
What are the tax implications of pension management for UK expats in Dubai?
There are a number of tax implications to consider when it comes to pension management for UK expats in Dubai. One of the most important things to keep in mind is that UK pensions are normally subject to UAE taxes, rather than UK taxes. Given the low tax position in the UAE, taking advantage of UAE residency ahead of repatriation can generate substantial tax savings for expats for the remainder of their lifetime.
Finally, it is entirely possible a UK expat may leave Dubai to live or retire in a third-party country. It’s important to speak to a Financial Advisor about tax planning as far as possible in advance of such a move.
Finding a quality Financial Advisor is one of the most important things an expat can do, as Financial Advisors can ensure you invest effectively and maximise tax planning opportunities.