UAE: Is your retirement plan 'outdated'? Here's what experts say

Khaleej Times

3 days ago

The age of 65 may still be the official retirement milestone, but in reality, it's no longer the finish line.
As life expectancy continues to rise in the UAE, financial experts are urging residents to rethink what retirement looks like, and more importantly, how to prepare for it. The challenge today isn't just retiring; it's sustaining a comfortable and healthy life for 25 to 30 years or more after leaving the workforce.
'The traditional model of retiring at 65 is becoming increasingly outdated,' said Shohidul Choudhury, Co-Founder and CEO of DNA Health & Wellness. 'Many individuals now face a substantial post-retirement life, necessitating a dynamic approach that includes diverse income sources, such as dividend-generating investments and well-balanced portfolios.'
This extended lifespan is redefining what it means to retire, and, more importantly, how to plan for it. A longer retirement means more years of expenses, healthcare needs, and financial uncertainty. Experts say this demands a new kind of retirement strategy, one that includes not only savings and investments, but also a serious, proactive focus on long-term health.
'Most financial plans underestimate the long-term expenses associated with maintaining health,' Choudhury said. 'Preventive healthcare, such as routine screenings and proactive wellness programs, should be integrated early into retirement strategies. Traditional health insurance often focuses on reactive measures, but policies that prioritize annual health assessments can provide better long-term value.'
Choudhury explained that as we live longer, it's not just about adding years to life, but adding healthy years. 'Longevity today is not just about living longer; it's about living healthier, more productive lives well into our 70s, 80s, and even 90s,' he said. 'Many chronic diseases are preventable and stem from lifestyle choices, including diet, sleep, and stress management. Longevity is about extending health span, the years we live in good health, rather than just lifespan.'
That health span, he emphasised, needs to be factored directly into any financial roadmap. 'Individuals typically spend just 12 per cent of their lifetime healthcare expenditures on preventive health, while up to 90 per cent occurs in the final years if chronic illnesses arise,' Choudhury noted. 'By shifting that balance earlier, individuals can improve their quality of life and reduce the financial burden of chronic illness later on.'
The idea of setting up a dedicated health budget, not as a luxury but as a long-term investment, is gaining traction. 'By prioritising regular screenings and healthy habits, individuals can avoid costly chronic conditions,' he said. 'This proactive approach not only safeguards quality of life but also extends independence well into retirement.'
Financial experts echo the need for a more holistic approach. Dr. Tariq Al-Farsi, a financial advisor, said that the traditional model of relying on a pension or a single source of income is no longer sufficient. 'Financial strategies should align with health goals,' he said. 'Planning for a longer life means considering both financial security and well-being as interconnected priorities.'
He believed that preparing for an extended retirement means thinking beyond savings accounts. 'Incorporating long-term care insurance into your financial plan is essential,' he said. 'It helps mitigate the costs associated with potential health issues as one ages. Additionally, exploring annuities can provide a steady income, ensuring that you won't outlive your savings.'
Early action, according to both health and financial professionals, remains the most powerful tool. 'The earlier you start planning, the more powerful the results can be,' Choudhury said. That means saving, investing, and taking control of one's health well before retirement age.
Dr Amina Hamadi, a geriatrician, emphasised that lifestyle choices made today have a long-lasting impact. 'The aging process can be managed effectively with the right lifestyle choices,' she said. 'Patients who engage in preventive care tend to have lower healthcare costs and better overall health outcomes. Regular check-ups and screenings can catch issues early, leading to more effective and less costly treatments.'