Faced with everyday life stress, we start to look forward to our retirement. After all what could be better than relaxing on your porch while basking in the sun. Worries of paying bills, rent and raising your children would be well behind you.

However, in the chaos of our current life, we forget to also add retirement to our to-do list. Getting started on a plan is essential, therefore below are a few steps to help you get going and achieve your retirement dream.

Step one- Picking a place to retire

You might have already invested in buying and building your dream home in Saudi Arabia or you’re still in process. Either ways, you still need to decide if that is where you wish to retire. Perhaps in the outskirts of your city or who knows maybe another country all together. It is important to decide plan for the kind of home, place and lifestyle you want to stay in as it will determine how much money you need to save for your retirement.


Step two- Calculate how much you need

Having a steady income flow during your retirement will ensure you get the lifestyle you want. One way to figure out how much you need to save for retirement is through online calculators. You can input your ideal retirement through scenarios and get result based on an annuity of around SR35, 000 on every SR600, 000 saved. However, there isn’t a way of knowing the exact rate of return.

Usually saving at least 8 times of your annual salary is a good way to ensure that your savings will last you though out your retirement. By 30 you should have saved one times your current annual salary, by 45 three times and by 55 five times.

Also if you are an expat living in Saudi Arabia and wish to retire there, keep in mind that the government is currently in the process of setting a cap on the maximum age you can work till. This cap may be somewhere between 50 to 60 years after which you will have to retire. Therefore if you might have to consider retiring earlier than expected.


Step three- Select your investment vehicles

Usually having a portfolio of investments is a good idea rather than a standard bank account to deposit your retirement funds into. An investment portfolio where the risk is spread across various assets can include investing into stocks, shares, bonds or property and is probably the best way to utilize your retirement fund.

However, if you are still deciding where you want to retire than open up a savings account. You can get hefty returns on your deposit while you decide where you want to retire or where you wish to invest your money.


Step four- Keep saving

Keep building upon your retirement fund and don’t stop just because you have reached your target. A pay raise or better job opportunities may increase your monthly income over the years. But instead of spending the extra cash, recalculate you retirement savings and save more. You can never have enough saved especially if you want your dream retirement or safeguard yourself from unforeseen events.


Step five- If you haven’t started, start now

If you falling behind on saving or haven’t even started yet, don’t panic as it’s never too late to start. Your retirement plans can always be altered to accommodate your late start or you can prolong your retirement by a few years.

Other benefits you may not have considered which can be added towards your retirement is gratuity and pension.  You can contact the Public Pension Agency in the Ministry of Finance for detailed information on eligibility for a pension in Saudi Arabia and include that estimate amount to your pool of funds. Also be vary of spending your gratuity or pension on paying off loans or debt as it’s easy to lose that money trying to solve present financial burden.

Invest your money for your future and don’t get tempted by new shiny cars or a grand holidays. Save your money and fulfil your retirement dreams.


Souqalmal.com is the first and leading comparison website in the Middle East allowing users to compare over 1,500 banking products across the UAE and Saudi Arabia.  The site enables users to search and compare fees, rates and benefits and make an informed decision on their financial decisions.  For more information, visit https://www.souqalmal.com/sa-en