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Retirement Planning
Your Magic Number: The Amount You Need to Retire Comfortably in the UAE
Senior Financial Planner Jonathan Lumb discusses the magic formula behind the amount you need to retire comfortably in the UAE.
May 21, 2025
Retirement. For some, it feels a lifetime away, for others, it’s around the corner. Yet recent studies show that most UK pension holders are falling behind in preparing for it. According to the BlackRock Read on Retirement 2024 survey, 50% of UK Defined Contribution pension holders believe they can't afford to save enought, while 51% believe they need to be saving more for a comfortable retirement.
That’s not just a figure on a page, it’s a financial crisis for a significant portion of the population. The bigger problem? Many people don’t know how to fix it, or worse, they’re hoping it will sort itself out.
Picture this: you’ve worked hard all your life. Your income has grown, your lifestyle has expanded, and you believe you’re on the right track. Then the day comes when you should be slowing down, only to discover you’re nowhere close to where you thought you’d be.
According to a Scottish Widows survey, 27% of people they asked worry they will have to work longer than originally planned to afford a comfortuble retirement. That’s not just another statistic, it’s a wake-up call.
A common mistake high earners make is confusing a strong income with long-term financial security. As earnings rise, it’s natural to spend more, whether that’s on bigger homes, luxury cars, or exotic holidays. The catch is that this doesn’t build wealth, it fuels lifestyle inflation.
It’s easy to believe that earning well now means you’ll always be able to afford the life you’ve built. The truth is very different. If your income stopped tomorrow, how long could you keep up your current lifestyle? A month? A year?
If the answer is anything less than “for years,” then you’re living rich, not building wealth.
The challenge for many isn’t that they’re not saving, but that they’re saving for the wrong future. People often imagine a lavish retirement that simply isn’t affordable based on what they’ve put aside.
When retirement finally arrives, they’re left asking why their savings can’t support the life they’ve pictured.
It’s not just younger people who feel the strain. A study conducted by the Phoenix Group in late 2023 showed that 59% of those aged 45-54, who should be in their prime earning years, feel uneasy about their retirement savings. Many know they need a plan, but they often don’t realise how much they’ll actually need until it’s too late.
This group faces particular pressures. They’re juggling mortgages, children’s education costs, and work demands, all while feeling unsure about the security of their retirement plans. These years are critical, and waiting any longer only makes the gap harder to close.
We’re staring at a retirement crisis that could threaten not only personal futures but also the economic stability of countries like the UK. With so many people failing to save enough, this widespread financial insecurity will only worsen if left unaddressed.
A future where people struggle financially after retiring could mean higher levels of poverty among older generations, creating challenges that could ripple through the entire economy.
This growing crisis highlights one factor that could change everything: financial education. Teaching financial planning in schools could give future generations the tools to make smarter decisions today and secure a better tomorrow.
Sadly, many people don’t understand how their finances work until it’s too late. Without proper financial knowledge, they risk making expensive mistakes, only to discover too late that they’ve missed vital opportunities to prepare for retirement.
One thing is clear: the time to act is now. Failing to make decisions today can cost you dearly later on. At Skybound Wealth Management, we have the knowledge and experience to help you create a plan that protects your future.
Don’t let this become your reality. Take charge of your retirement planning now and avoid the mistakes so many others make.
Take Action Today
The best time to prepare for retirement was yesterday. The next best time is today. Book a free consultation and take your first step towards a retirement plan built around you. Don’t leave your future to chance.
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