Jay Tee

As I understand it, UK private pension schemes require you to have relevant earnings based in the UK and many UK provider's permissions/ licences are for UK only.

What are my options for contributing to a private pension scheme while working in the UAE ? ( whose benefits I wish to claim once I have returned to the UK and retired. ) thanks in advance.

mentalist

I wasn't aware of any pension schemes operating here. You simply get paid Terminal Benefits/Gratuity upon leaving, the amount depending on how long you have worked here.

Jay Tee

Alright. But to financially plan for the future past retirement , the end of service benefit would be a lump sum with only so much mileage.

I have always thought that a pension is the best option for me. I just wondered what others do to ensure a modest income past retirement ? I suppose buying property and renting it out is a form of income. Is this what Expats tend to do or are there other options ?

OriginalSunshine

Property is very non liquid. Whilst there are those that can be buy to let landlords, the hassle factor is too much for us when we both work, with small children.
We are very boring.
We save and invest in a broad range of funds and shares and cash, and spend far less than we earn. We also invest cautiously. Not massive earnings, but a 5% return to date this year alone is ok. Nothing spectacular by any means, but no big losses either.

Jay Tee

Ok so presumably in a decade or two one can sell off chunks of shares as and when one needs the cash.

Bahtatboy

And/or buy shares in companies which give dividends, thus generating an annual or twice-yearly income. The theory is that large, blue-chip companies will still be around in years to come, will still pay dividends, and that the value of the dividends will at least keep pace with inflation. (Note "theory".)

Jay Tee

I can't help feeling this lack of a traditional pension mechanism with working in the middle East despite the tax free income is a bit of a turn off.

Bahtatboy

There's a lack of a traditional pension mechanism in UK: the lucky few have a final salary scheme, most have a savings scheme (albeit contributed to by their employers) branded as a pension, and the rest have nothing or close to it. A significant factor of being an expat for most expats should be to fill that gap.

scrubbedexpat141

Gratuity equates to something like a 7% pension.

Bahtatboy

I think you mean 7% contributions into a savings scheme, with no guarantee of what you'll get when you retire. That's a long way from what has traditionally been known as a pension.

scrubbedexpat141

Call it what you like, it's a 7% contribution from your employer each year. Based on final salary (I think).

That can be done with what you like, surely if you return to the UK with (for sake of argument) 10,000 GBP from gratuity, you can lump that into a pension to get it rolling?

Either which way, it's not a part of working in the region to be sniffed at.

mikewot

I am very surprised that no enterprising Wealth Manager has jumped in on this thread to offer 'advice'

Bahtatboy

I've been putting down the bait...

OriginalSunshine

Yes. We currently reinvest the dividends, thus gaining compound savings.

busybee2

i know that if you have a pension in the uk, they will take off that amount out of your gratituty when you leave here