Smartest investment and life plans in UAE

Best Investment Plans for Retired in the UAE

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  | Published: 30 May 2020 | Last Updated On: 20 January 2021

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Smartest investment and life plans in UAE

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Retirement marks the end of economic productivity and the beginning of twilight years of one’s life. Retirement can be considered as a long-awaited vacation, where you get all the time to pursue your hobbies, travel to every place you want to, and spend quality time with your loved ones.

However, in order to make sure that you spend the twilight years of your life with peace and comfort it is important to have a steady flow of income. Most of the people working in the private sector have no access to pensions which restricts their expenses after their retirement.

The best way to maintain a steady flow of income along with financial stability one should opt for suitable investment plans in the UAE. These investment plans allow your capital to grow over a period of time which facilitates steady flow income later during the twilight years of life.

Investment plans not only provide income support during the economically unproductive years of life but also, ensure a blanket of financial security via insurance benefits. In order to ensure that your retirement is smooth, it is important to start planning for it during the early years of life. However, if you’ve done it yet, it is not too late. In this thread, we’ve come up with some of the best retirement plans for retired personnel in the UAE.

Retirement Plans

When it comes to financial planning for one’s retirement the first product that crosses our minds is retirement plans. Investment plans that account for financial stability and support during the retired years of life are termed as retirement plans. There are several retirement plans available in the market and one can choose any of them based on their individual goals, objectives, and requirements during their retired lives. Retirement plans enable a steady flow of income that helps retired people to live the life they want to without any struggle and hassle.

Mutual Funds

Probably one of the most popular forms of investment plans for all age groups mutual funds are good to go if you are looking for an investment tool during your retirement. Mutual funds as the name suggest are pooled capitals of funds formed by the mutual contribution of numerous investors with the common objective of generating and accumulating wealth. The pooled capital is invested in different market-based securities by an expert fund manager. Mutual funds are safe investment plans as they are managed and organized by an expert fund manager. A major benefit of investing in mutual funds is their liquidity. Liquidity refers to the ability of an investment or an asset to be converted into cash. High liquidity, low degrees of risks, and considerable returns make mutual funds one of the best choices of investment for retired investors in the UAE.

Gold

Gold is one of the oldest forms of investment tool that has been used since times immemorial. Gold is a unique investment plan/tool due to a plethora of reasons. It is highly liquid in nature and proves to be highly efficient in providing a hedge against inflation during phases of financial instability. The market value and attributes of gold make it one of the best investment options for retirees in the UAE. Retired investors have a choice of choosing between the physical form of gold and the non-physical form of gold as an investment plan/tool. The physical form of gold includes coins, bars, ornaments, bullions, etc. On the other hand, the non-physical form of gold includes gold bonds, gold exchange-traded funds (ETFs) and gold futures.

Fixed Deposits

Bank fixed deposit commonly known as FDs are one the most common and safest forms of parking capital. Fixed deposits may be considered as the ideal form of investment for retirees since the degree of risk associated with these investment plans are equivalent to negligible and the rate of return is static. The best part of investing via fixed deposits for retirees is that senior citizens are typically offered an additional 0.25 – 1.00% benefit on the return depending on their bank. An important point to be kept into consideration while investing in fixed deposits is that usually there is a minimum lock-in period before which the investors are not allowed to withdraw the money.

Monthly Income Plans (MIP)

Monthly Income plans commonly known as MIP are one of the common investments available in the UAE. MIPs enable investors to facilitate a smooth flow of income in the form of monthly payout based on the amount deposited by the investor. The monthly income varies depending on the time horizon and the initial investment. Senior citizens are usually entitled to receive an additional profit of up to 1% typically in the form of interest. The monthly income plans fulfill the objective of maintaining a steady flow of income during the twilight years.

In a Nutshell

The correct approach to planning for a smooth retirement in terms of financial stability is to incorporate a mixture of investment plans that add diversity and neutralize the risk of losses. Another important factor that is crucial in choosing the right investment plan for retirees is adequate research and comparison amongst different available options. Investors should emphasize their goals, and requirements while choosing their investment plan for spending their twilight years of life with peace of mind and comfort.