As a private wealth adviser working with clients across Africa and the Middle East, I see a common theme. Many internationally mobile professionals put off retirement planning, assuming they have plenty of time. But one universal truth always applies: the longer you wait to plan, the more you need to save and the fewer options you have.
Delays often lead to stressful shortfalls later in life. By understanding the challenges, seeing the cost of waiting, and making your money work harder, you can retire on your terms rather than circumstances dictating the outcome.
For many expats, traditional pension systems are out of reach. Home country contributions stop when you leave, while host nations often restrict foreigners from accessing national schemes. Frequent relocations can also leave pensions scattered and fragmented. On top of this, employer support is inconsistent. Some contracts include gratuity or contributions, but many do not. And freelancers and contractors often have no safety net at all.
Currency and inflation risk add another layer. A South African professional saving in rand while working in Bahrain may see the real value of their savings erode rapidly. Inflation in emerging markets can undo years of careful saving if funds are not protected in stronger, diversified currencies.
The biggest challenge, however, is procrastination. Many people delay until their 40s or 50s. The later you start, the more aggressive and costly your savings plan becomes.
Take Sarah, a 29-year-old marketing executive from the UK working in Dubai. She began saving $600 a month into a globally portable retirement plan at 26. She is now on track to retire at 60 with more than $1 million. If she had started ten years later, her monthly contributions would have had to double to reach the same goal.
Compare that with Ahmed, a 42-year-old Egyptian civil engineer who spent 15 years in the Gulf. He relied only on gratuity and basic savings. Today he must save $2,000 a month and work until 68 instead of 60 to achieve the lifestyle he wants.
Another couple, Priya and Arjun, spent their careers across Singapore, Saudi Arabia, South Africa, and the UAE. By the time they came to me, they had multiple pensions and savings accounts scattered across countries and currencies. The solution was consolidation into a single, tax-efficient structure that gave them clarity and control.
Finally, Lebo, a South African teacher working in Bahrain, had saved diligently but kept everything in a low-yield rand account. Inflation eroded the real value of her money. Only by moving into a globally diversified portfolio was she able to protect her long-term goals.
Sarah’s story also shows the power of compounding. By investing $600 a month from age 26, her contributions grow not only from the money she puts in but also from the returns her investments generate each year. Over 31 years, assuming a reasonable 7 percent annual growth rate, this compounding effect turns her regular savings into over $1 million by retirement. Start later, and you miss years of growth, meaning monthly contributions must increase significantly to reach the same goal. Compounding only works if you give it time, small amounts invested consistently today can become a substantial nest egg tomorrow.
The numbers are stark. If your goal is for a retirement income of £3,000 a month (around £36,000 a year), you will need a pot of roughly £900,000 by age 60. Assuming 7 percent annual growth, the cost of waiting looks like this:
Compounding is powerful, but only if you give it time to work for you.
The starting point is consolidation. Do not leave pensions and accounts scattered across borders. Use internationally accessible structures that travel with you. Saving is not enough — cash will lose value to inflation. Diversified, goal-focused investment portfolios are essential.
Plan around your lifestyle. Think carefully about where you want to retire and factor in local tax rules, healthcare costs, and currency exposure. Most importantly, seek guidance from an adviser who specialises in cross-border retirement planning.
Many expats enjoy higher disposable income thanks to tax-free salaries, housing allowances, and lower living costs. The key is to capture this surplus rather than letting it disappear into lifestyle spending. Automating contributions ensures you stay disciplined. Investing across global markets spreads risk and gives you access to growth.
By using internationally recognised, tax-efficient structures, your wealth can compound without being eroded by annual tax bills. For many of my clients, targeting contributions of £2,000–£5,000 per month during their expat years has been the difference between retiring comfortably and falling short.
One of the greatest advantages of being an expat is access to tax-efficient jurisdictions. These allow your investments to grow without local taxation on interest, dividends, or capital gains. They also provide flexibility to hold multiple currencies, portability to move with you as your career evolves, and estate planning benefits to simplify inheritance across borders.
This is how short-term opportunity turns into long-term security.
Planning does not stop when you retire. The next challenge is turning your savings into an income without running out of money. The sustainable drawdown method provides a framework. Begin with withdrawals of around 5 percent a year, adjusted for inflation. Take more in strong years, trim back in weaker ones, and focus on longevity so your wealth provides income for 25 to 35 years. For expats, combining this approach with diversified, tax-efficient investments gives confidence that your lifestyle can be sustained anywhere in the world.
During your working years abroad, save aggressively into portable structures that maximise surplus income and compounding growth. As retirement approaches, consolidate accounts, reduce risk, and align your portfolio with your chosen retirement destination. Once retired, apply the sustainable drawdown method to create a flexible, lasting income.
The biggest mistake most expats make is not choosing the wrong investment, but waiting too long to start. Whether you are 28 or 55, a proactive strategy is your most valuable asset.
If you are living and working across Africa or the Middle East and would like to discuss how to secure your financial future, speak with Shyam Sejpal at Skybound Wealth today.
Navigating financial landscapes as an expatriate, Shyam understands the unique challenges that come with managing wealth across borders, from regulatory complexities to long-term financial planning. As a member and associate of the Chartered Institute for Securities and Investment, he brings a deep understanding of global financial principles, ensuring his clients receive expert guidance rooted in professionalism and integrity.
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