UAE expats and the reality of planning for a longer retirement



Nicholla Henderson Hall hasn’t even hit the big 4-0 yet, and she is already planning on living until she’s at least 100. But unless your health is in tip-top condition, living to such a grand old age, as about a quarter of us are expected to do, will be expensive.

“I do worry about what my health will be like by the time I retire”, says Ms Hall, 39, an Abu Dhabi-based social media coach and podcaster from the United Kingdom. “It’s important to me to get to that age in as healthy a state as I possibly can. I eat more alkaline-based foods, I keep to an 20-80 meat-vegetable balance, I just ran the Dubai marathon – I do all these things to make the best of my body.”

Life expectancy is rising to an all-time high. In the UAE, people can expect to live to an average of 78, compared with 75 in 2003, according to United Nations statistics. But in many ways the quality of people’s health is not improving, so those later years will not necessarily be lived out in comfort.

Ms Hall started putting 20 to 30 per cent of her wages into a retirement fund when she was 24 to ensure she could afford the best health care possible, during the time of her life when she will probably need it the most.

“When we are older, we might stay in the UAE, or move to Thailand”, she says. “But wherever we end up, what matters is having the income there to support the lifestyle that we want.”

A recent study from HSBC, The Future of Retirement 2016, polled more than 1,000 UAE residents and found that almost half the working age population believe that poor health will make saving for their retirement more difficult. And nearly eight out of 10 pre-retirees in the UAE blame a lack of free time or work commitments for preventing them from leading a healthier lifestyle.

With 61 per cent of the UAE’s pre-retirees unable to predict how much they are likely to spend on health care in retirement, UAE residents risk being financially unprepared for a comfortable retirement, says HSBC’s head of wealth development in the Mena region, Gifford Nakajima.

“Health coverage is not something that normally pops up on the radar when you are doing your retirement planning,” he explains. “But people need to bear in mind that once they retire, their health insurance premiums will no longer be covered by their company. People here tend to be less active in their daily lifestyle – they don’t usually walk or cycle to work, they might have maids, which means they don’t do as much in the home, and they’ll hop in the car and try to find a parking space close to the entrance.”

Mr Gifford stresses that with health costs escalating, people need to make sure they have money when they retire that will provide the sort of health service they might require.

According to a report released last month by EY, “Investment Big Bets – Health Care and Life Sciences in the GCC”, the growing dependence on modern technology, hot climate and physical inactivity mean that GCC countries continue to rank among the highest in the world for risk factors related to diabetes, hypertension, cardiovascular conditions and obesity, which all contribute to rising healthcare bills in retirement.

Mita Srinivasan, 59, from India, who owns Market Buzz PR in Dubai, is planning to move to Nepal to devote more time to her favourite charity projects when she retires. But the healthcare aspect of the move is causing her some concern. “At the moment, the company pays for health insurance and that takes care of worries”, she says. “In the future, I don’t see any health insurance companies that offer decent, affordable health insurance for older people in regions such as South East Asia.”

Ms Srinivasan says it was only when she started planning her 60th birthday gathering that she began to seriously contemplate the concept of retirement. “I am hoping to carry on working for as long as I can without taking away from the service levels I offer right now. As a business owner, I also have to think how my actions would affect others on my team. As an expatriate I’m also quite reliant on how long they would keep renewing my visa, so I need to plan for that.”

Ms Srinivasan says she pulled out of her own retirement fund when she needed the cash for something else.

“I guess my share in the business is now my retirement plan. I have no other. But there is no point in regrets,” she adds.

Caroline Domanska, who owns Money Mindset Coaching, which has clients in the UAE and the UK, says she thinks there is a tendency among the UAE’s expatriates to see their gratuity pay as a form of pension pot.

But she cautions against this short-sighted mentality. “The trouble is that there always seems to be something else to spend the gratuity money on when the time comes. So you move employers and you think, ‘well, some of it should be used for a treat to celebrate the new job’. Should you be getting your gratuity when leaving the country, it may well get swallowed up in moving costs. That’s why retirement pots in other countries are not available until you reach some sort of retirement age, because human nature is to use money when it comes to us.”

Hedley Butterfield, 66, from the UK, has been working in Abu Dhabi as a college English teacher since 2003 and has been an expatriate for the last 36 years, in Hong Kong and Brunei as well as the Middle East. He now regrets that he didn’t start saving for retirement at a younger age.

“I have only been seriously thinking about it for the last 15 years, since I came to the Middle East, which is silly really,” he says. “Before then, paying the mortgage off was a bigger priority. In hindsight, a bit of earlier planning would have been sensible.”

HSBC’s survey found that 50 per cent of pre-retirees in the UAE consider buying a house as a barrier to retirement saving, while others say the costs of raising children and their own poor heath prevent them from building up a sizeable nest egg.

A study undertaken by the fin­ance comparison site compareit4me.com last month reveals that 53 per cent of UAE residents do not think they earn enough to save, while a third claim not to save a penny.

Ms Domanska thinks it is hard for people to face up to the reality that they may retire in their 60s and easily live for another 30 years – “which may or may not be in good health. While we don’t want to dwell on the negatives, a lot of people think they will be able to keep working in some capacity into older age, on lucrative consultancy packages, but this will not be the same for all”.

Currently, the retirement age in the UAE is 65 for expatriates and 60 for Emiratis, but one-year ­visas are given for expatriates who are older than 65 on a discretionary basis.

When the time came for Mr Butterfield to retire at 65, his employers were happy to allow him to stay on for another two more years, enabling him to build up more of a retirement nest egg. He is now starting to look for work in the UK for his return when his current contract ends this summer. “I’m mentally and physically fit, so sitting around in retirement is not really my cup of tea, to be honest,” he says. “My ideal scenario would be some sort of part-time work or private tutoring. Apart from the money, I feel like I would be wasting my brain otherwise.”

But Mr Butterfield’s passion to carry on working for as long as he can is not shared by everyone. HSBC’s report found that 29 per cent of UAE pre-retirees aged 45-plus would rather retire in the next five years if they could. And a fifth of those blame their early retirement dreams on the negative effect work has on their mental and physical health.

The final message, concludes Mr Nakajima, is that you shouldn’t wait until you retire to start worrying about your health. “You can start saving for retirement now and you can also start thinking about how to stay healthy now, because people are living longer, that’s the great news, but you do want to have a healthy retirement to enjoy those later years.”

Mr Gifford says HSBC partners with an insurance company and says many applicants for life insurance tick the box declaring they are not smokers.

“But then when the medical check up happens, it turns out that they do shisha – so people don’t have this sense that they are actually doing something that is detrimental to their health,” he adds. “ The healthier you stay, the less you’re going to be paying for medical costs in retirement. In a sense, it’s almost a financial bonus for staying healthy.”

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Details

Through Her Lens: The stories behind the photography of Eva Sereny

Forewords by Jacqueline Bisset and Charlotte Rampling, ACC Art Books

The specs: 2018 Jaguar F-Type Convertible

Price, base / as tested: Dh283,080 / Dh318,465

Engine: 2.0-litre inline four-cylinder

Transmission: Eight-speed automatic

Power: 295hp @ 5,500rpm

Torque: 400Nm @ 1,500rpm

Fuel economy, combined: 7.2L / 100km

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

UAE currency: the story behind the money in your pockets
TOURNAMENT INFO

Women’s World Twenty20 Qualifier

Jul 3- 14, in the Netherlands
The top two teams will qualify to play at the World T20 in the West Indies in November

UAE squad
Humaira Tasneem (captain), Chamani Seneviratne, Subha Srinivasan, Neha Sharma, Kavisha Kumari, Judit Cleetus, Chaya Mughal, Roopa Nagraj, Heena Hotchandani, Namita D’Souza, Ishani Senevirathne, Esha Oza, Nisha Ali, Udeni Kuruppuarachchi

THE DETAILS

Solo: A Star Wars Story

Director: Ron Howard

2/5

Essentials
The flights

Return flights from Dubai to Windhoek, with a combination of Emirates and Air Namibia, cost from US$790 (Dh2,902) via Johannesburg.
The trip
A 10-day self-drive in Namibia staying at a combination of the safari camps mentioned – Okonjima AfriCat, Little Kulala, Desert Rhino/Damaraland, Ongava – costs from $7,000 (Dh25,711) per person, including car hire (Toyota 4x4 or similar), but excluding international flights, with The Luxury Safari Company.
When to go
The cooler winter months, from June to September, are best, especially for game viewing. 

The line up

Friday: Giggs, Sho Madjozi and Masego  

Saturday: Nas, Lion Bbae, Roxanne Shante and DaniLeigh  

Sole DXB runs from December 6 to 8 at Dubai Design District. Weekend pass is Dh295 while a one day pass is Dh195. Tickets are available from www.soledxb.com

What went into the film

25 visual effects (VFX) studios

2,150 VFX shots in a film with 2,500 shots

1,000 VFX artists

3,000 technicians

10 Concept artists, 25 3D designers

New sound technology, named 4D SRL

 

Sunday's games

Liverpool v West Ham United, 4.30pm (UAE)
Southampton v Burnley, 4.30pm
Arsenal v Manchester City, 7pm

Match info

Newcastle United 1
Joselu (11')

Tottenham Hotspur 2
Vertonghen (8'), Alli (18')

How it works

Booklava works on a subscription model. On signing up you receive a free book as part of a 30-day-trial period, after which you pay US$9.99 (Dh36.70) per month to gain access to a library of books and discounts of up to 30 per cent on selected titles. You can cancel your subscription at any time. For more details go to www.booklava.com

Sri Lanka v England

First Test, at Galle
England won by 211

Second Test, at Kandy
England won by 57 runs

Third Test, at Colombo
From Nov 23-27

THE DETAILS

Director: Milan Jhaveri
Producer: Emmay Entertainment and T-Series
Cast: John Abraham, Manoj Bajpayee
Rating: 2/5

How the UAE gratuity payment is calculated now

Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.

The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.

1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):

a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33

b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.

2. For those who have worked more than five years

c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.

Note: The maximum figure cannot exceed two years total salary figure.

Match info

Uefa Champions League Group H

Manchester United v Young Boys, Tuesday, midnight (UAE)

How the UAE gratuity payment is calculated now

Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.

The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.

1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):

a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33

b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.

2. For those who have worked more than five years

c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.

Note: The maximum figure cannot exceed two years total salary figure.

The Florida Project

Director: Sean Baker

Starring: Bria Vinaite, Brooklynn Prince, Willem Dafoe

Four stars

2018 ICC World Twenty20 Asian Western Regional Qualifier

The top three teams progress to the Asia Qualifier

Final: UAE beat Qatar by nine wickets

Third-place play-off: Kuwait beat Saudi Arabia by five runs

Table

1 UAE 5 5 0 10

2 Qatar 5 4 1 8

3 Saudi 5 3 2 6

4 Kuwait 5 2 3 4

5 Bahrain 5 1 4 2

6 Maldives 5 0 5 0

RESULT

Argentina 0 Croatia 3
Croatia: 
Rebic (53'), Modric (80'), Rakitic (90' 1)

Match info

Uefa Champions League Group C

Liverpool v Napoli, midnight

How Islam's view of posthumous transplant surgery changed

Transplants from the deceased have been carried out in hospitals across the globe for decades, but in some countries in the Middle East, including the UAE, the practise was banned until relatively recently.

Opinion has been divided as to whether organ donations from a deceased person is permissible in Islam.

The body is viewed as sacred, during and after death, thus prohibiting cremation and tattoos.

One school of thought viewed the removal of organs after death as equally impermissible.

That view has largely changed, and among scholars and indeed many in society, to be seen as permissible to save another life.

Mubadala World Tennis Championship 2018 schedule

Thursday December 27

Men's quarter-finals

Kevin Anderson v Hyeon Chung 4pm

Dominic Thiem v Karen Khachanov 6pm

Women's exhibition

Serena Williams v Venus Williams 8pm

Friday December 28

5th place play-off 3pm

Men's semi-finals

Rafael Nadal v Anderson/Chung 5pm

Novak Djokovic v Thiem/Khachanov 7pm

Saturday December 29

3rd place play-off 5pm

Men's final 7pm

Tuesday results:

  • Singapore bt Malaysia by 29 runs
  • UAE bt Oman by 13 runs
  • Hong Kong bt Nepal by 3 wickets

Final:
Thursday, UAE v Hong Kong

IF YOU GO
 
The flights: FlyDubai offers direct flights to Catania Airport from Dubai International Terminal 2 daily with return fares starting from Dh1,895.
 
The details: Access to the 2,900-metre elevation point at Mount Etna by cable car and 4x4 transport vehicle cost around €57.50 (Dh248) per adult. Entry into Teatro Greco costs €10 (Dh43). For more go to www.visitsicily.info

 Where to stay: Hilton Giardini Naxos offers beachfront access and accessible to Taormina and Mount Etna. Rooms start from around €130 (Dh561) per night, including taxes.

If you go

The flights

Etihad flies direct from Abu Dhabi to San Francisco from Dh5,760 return including taxes. 

The car

Etihad Guest members get a 10 per cent worldwide discount when booking with Hertz, as well as earning miles on their rentals. A week's car hire costs from Dh1,500 including taxes.

The hotels

Along the route, Motel 6 (www.motel6.com) offers good value and comfort, with rooms from $55 (Dh202) per night including taxes. In Portland, the Jupiter Hotel (https://jupiterhotel.com/) has rooms from $165 (Dh606) per night including taxes. The Society Hotel https://thesocietyhotel.com/ has rooms from $130 (Dh478) per night including taxes. 

More info

To keep up with constant developments in Portland, visit www.travelportland.com. Good guidebooks include the Lonely Planet guides to Northern California and Washington, Oregon & the Pacific Northwest. 

 

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MATCH INFO

Hoffenheim v Liverpool
Uefa Champions League play-off, first leg
Location: Rhein-Neckar-Arena, Sinsheim
Kick-off: Tuesday, 10.45pm (UAE)

Mountain%20Boy
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Zainab%20Shaheen%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%3C%2Fstrong%3E%20Naser%20Al%20Messabi%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3C%2Fstrong%3E%3A%203%2F5%3C%2Fp%3E%0A
Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Federer's 19 grand slam titles

Australian Open (5 titles) - 2004 bt Marat Safin; 2006 bt Marcos Baghdatis; 2007 bt Fernando Gonzalez; 2010 bt Andy Murray; 2017 bt Rafael Nadal

French Open (1 title) - 2009 bt Robin Soderling

Wimbledon (8 titles) - 2003 bt Mark Philippoussis; 2004 bt Andy Roddick; 2005 bt Andy Roddick; 2006 bt Rafael Nadal; 2007 bt Rafael Nadal; 2009 bt Andy Roddick; 2012 bt Andy Murray; 2017 bt Marin Cilic

US Open (5 titles) - 2004 bt Lleyton Hewitt; 2005 bt Andre Agassi; 2006 bt Andy Roddick; 2007 bt Novak Djokovic; 2008 bt Andy Murray

RESULT

Bayern Munich 0 AC Milan 4
Milan: Kessie (14'), Cutrone (25', 43'), Calhanoglu (85')

HUNGARIAN GRAND PRIX RESULT

1. Sebastian Vettel, Ferrari 1:39:46.713
2. Kimi Raikkonen, Ferrari 00:00.908
3. Valtteri Bottas, Mercedes-GP 00:12.462
4. Lewis Hamilton, Mercedes-GP 00:12.885
5. Max Verstappen, Red Bull Racing 00:13.276
6. Fernando Alonso, McLaren 01:11.223
7. Carlos Sainz Jr, Toro Rosso 1 lap
8. Sergio Perez, Force India 1 lap
9. Esteban Ocon, Force India  1 lap
10. Stoffel Vandoorne, McLaren 1 lap
11. Daniil Kvyat, Toro Rosso 1 lap
12. Jolyon Palmer, Renault 1 lap
13. Kevin Magnussen, Haas 1 lap
14. Lance Stroll, Williams 1 lap
15. Pascal Wehrlein, Sauber 2 laps
16. Marcus Ericsson, Sauber 2 laps
17r. Nico Huelkenberg, Renault 3 laps
r. Paul Di Resta, Williams 10 laps
r. Romain Grosjean, Haas 50 laps
r. Daniel Ricciardo, Red Bull Racing 70 laps

The UAE squad for the Asian Indoor and Martial Arts Games

The jiu-jitsu men’s team: Faisal Al Ketbi, Zayed Al Kaabi, Yahia Al Hammadi, Taleb Al Kirbi, Obaid Al Nuaimi, Omar Al Fadhli, Zayed Al Mansoori, Saeed Al Mazroui, Ibrahim Al Hosani, Mohammed Al Qubaisi, Salem Al Suwaidi, Khalfan Belhol, Saood Al Hammadi.

Women’s team: Mouza Al Shamsi, Wadeema Al Yafei, Reem Al Hashmi, Mahra Al Hanaei, Bashayer Al Matrooshi, Hessa Thani, Salwa Al Ali.

Match statistics

Dubai Sports City Eagles 8 Dubai Exiles 85

Eagles
Try:
Bailey
Pen: Carey

Exiles
Tries:
Botes 3, Sackmann 2, Fourie 2, Penalty, Walsh, Gairn, Crossley, Stubbs
Cons: Gerber 7
Pens: Gerber 3

Man of the match: Tomas Sackmann (Exiles)

Challenge Cup result:

1. UAE 3 faults
2. Ireland 9 faults
3. Brazil 11 faults
4. Spain 15 faults
5. Great Britain 17 faults
6. New Zealand 20 faults
7. Italy 26 faults

World Sevens Series standing after Dubai

1. South Africa
2. New Zealand
3. England
4. Fiji
5. Australia
6. Samoa
7. Kenya
8. Scotland
9. France
10. Spain
11. Argentina
12. Canada
13. Wales
14. Uganda
15. United States
16. Russia

THE BIO

Born: Mukalla, Yemen, 1979

Education: UAE University, Al Ain

Family: Married with two daughters: Asayel, 7, and Sara, 6

Favourite piece of music: Horse Dance by Naseer Shamma

Favourite book: Science and geology

Favourite place to travel to: Washington DC

Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.