Chris Ferguson, Managing Director, Guardian Life Management (Dubai), says portable pensions remain the best bet for expats as the UAE unveils its own pension scheme.
“The introduction of a local pension scheme in the UAE is certain to benefit the economy but to what extent it would help expats is altogether less clear. Those who opted for it would be faced with a huge problem in the form of portability. Investing in such a pension scheme raises the question, what happens to the pot when the expat decides to move on? Would it be encashed or does it sit frozen with fees continuing to be taken?”
Chris’s comments came in response to The Wealth Builder Plan, which was recently unveiled by the National Bank of Abu Dhabi for local and multinational companies to offer their staff.
“Many expats find themselves moving from jurisdiction to jurisdiction or indeed choosing to retire somewhere else. As such, a flexible, portable savings plan based in an international jurisdiction such as the Isle of Man or the Channel Islands remains the most efficient option for an international worker.
“Pension savers should have as much control over their investments and how they receive benefits as possible. Tying their pension scheme down to the UAE could hamper their chances of making the most out of their money.”