Hello learners! Liam here. I have been thinking a lot about the future lately. I love living in the Gulf, but I realized something scary. Back home, my government takes care of my pension. Here, I do not see any pension deductions on my payslip. Does this mean I will have zero money when I retire?That is the big question, Liam. Welcome back, everyone. Today we are discussing perhaps the most critical topic for your long term security: Wealth and Retirement Planning. The answer to your question depends entirely on who you are. Are you a National citizen of a G C C country, or are you an Expat?Hi there! Chloe here. I have researched the laws, and the systems are completely different. If you are a National, like an Emirati or a Saudi citizen, you are covered by a strong government pension system. In Saudi Arabia, it is called G O S I, the General Organization for Social Insurance. In the U A E, it is the G P S S A. For these lucky learners, a percentage of their salary is automatically deducted every month, the employer adds a share, and the government adds a share. When they retire, usually around age fifty or sixty, they get a monthly salary for the rest of their lives.Hello! I am Maya. But for us Expats, like you and me Liam, that system does not exist. We do not get a monthly pension check from the government when we stop working. Instead, we have the End of Service Gratuity. We talked about this before. It is a lump sum of cash you get when you leave your job. But here is the dangerous part: Many people think this Gratuity is their pension. It is not. It is nowhere near enough to survive on for twenty years of retirement.Wait, so if I work here for twenty years, my Gratuity will not pay for my retirement? I thought it was a huge bonus!Let us do the math. Even if you work for twenty years, your gratuity might equal roughly one year of your final salary. One year of salary cannot pay for twenty years of living expenses, medical bills, and travel. This is what we call the Savings Gap. If you rely only on your Gratuity, you will run out of money very quickly.This is why the governments in the region are launching new initiatives. They realize that the Gratuity system is old fashioned. In places like the Dubai International Financial Centre, they introduced D E W S, or the Employee Workplace Savings scheme. Instead of holding the money until you leave, employers now make monthly payments into an investment fund. This money grows over time in the stock market. Recently, the U A E government has launched a voluntary version of this for all companies, and National Bonds has introduced the Golden Pension scheme. These allow you to invest your end of service money while you are still working, so it grows with compound interest.That is a huge improvement! It means your money is working for you, not just sitting in a bank account. But Liam, you also need to build your own personal pension. You cannot rely just on the company. You need to open a brokerage account or an investment plan. Many expats buy property back in their home country, or they invest in low cost E T Fs, which are baskets of stocks from around the world. The goal is to accumulate assets that pay you, so you do not have to work forever.Okay, I am going to start investing immediately. But tell me this. If I retire, do I have to leave? I always thought that once my job ends, my visa is cancelled and I have thirty days to pack my bags and go.That used to be the case, Liam, but the rules have changed dramatically. The Gulf countries now want people to stay and retire here! They have introduced Retirement Visas. For example, in Dubai, if you are over fifty five years old, you can get a five year renewable visa if you meet one of three conditions. One, you own a property worth two million dirhams. Two, you have savings of one million dirhams. Or three, you have an active monthly income of twenty thousand dirhams. This is a game changer. It means you can essentially sponsor yourself and live here as long as you want.And it is not just the U A E. Saudi Arabia and Qatar are also introducing long term residency options for investors and property owners. This is often called the Golden Visa. It gives you stability. It means you do not need an employer to stay in the country. But, to qualify for these visas, you need that magic number: usually around one million in local currency. That should be your savings goal!One million. Okay, that is a big number, but now I have a target. I need to save not just for my future bills, but also to buy my right to stay in this beautiful place.Exactly. And do not forget estate planning. This is a bit serious, but important. In your home country, if you pass away, the laws are clear about who gets your money. Here, the courts apply Sharia law by default, which might distribute your assets differently than you expect. It is highly recommended for every expat to have a registered Will in the country they live in. This ensures your savings and property go to your loved ones exactly as you wish.So, to wrap up this lesson, here is your action plan. First, accept that your Gratuity is just a bonus, not a pension. Second, join a workplace savings scheme if your company offers one, like D E W S or National Bonds. Third, start your own private investments immediately to build that one million dollar nest egg. And fourth, look into the Retirement Visa requirements so you know exactly what you need to aim for.I feel much more in control now. It is all about taking responsibility for my own future. No one else is going to do it for me.That is the spirit, Liam! Start today, and your future self will thank you.Thank you for watching, learners. We wish you a wealthy and secure future!
