UAE: How residents earning a Dh10,000 salary can retire with Dh1 million

Since most companies in the UAE are not obliged to provide an employee pension scheme like in other countries, millennials must make their own provision for the future.

“If someone has a steady stream of income or in stable employment, then they should be saving whilst they can. Save whilst there is income because if there is an interruption in income or employment, then savings will already be there to dip into should they be needed,” says Rupert J Connor, partner at Abacus Financial Consultants.

Keeping in mind an average salary of Dh10,000 per month, Khaleej Times asks financial advisors to guide readers on how much to spend and save on their monthly income so that they can allocate their budgets accordingly and not overspend.

By following this practice, the UAE residents can accumulate more than Dh1 million in 20 years when they invest their 20 per cent savings, growing at around seven per cent per annum, says Damodhar Mata, a financial advisor in Dubai.

Since around half a million dirham can be saved by just setting aside 20 per cent in savings, profits from the right investments can increase multiple times and help residents’ saving to reach around a million in two decades.

How to allocate budget:

-waheedabbas@khaleejtimes.com