UAE: Pension Authority highlights importance of budget planning

UAE: Pension Authority highlights importance of budget planning

Insured individuals who look forward to enjoying a secure and stable retirement and lifestyle, need to build a practical savings foundation for themselves and their family when planning for their personal annual expenditures and budget, according to the General Pension and Social Security Authority (GPSSA).

As part of the ‘Get Ready - Proactive Financial Planning’ campaign, which offers members of the public guidance on how to better plan their finances, the GPSSA offers guidelines on how to set aside and save surplus amounts through proper budget planning by determining monthly spending priorities alongside the value of expected financial expenditures throughout the year.

Budget planning starts with setting aside personal assets owned by the insured individual and determining the value of his/her current salary, savings, investments, and emergency amount, if any, during the year.

Once the annual income is determined, annual obligations need to be managed; those may include loans (long-term obligations); monthly obligations (car instalments, water and electricity bills); living expenses ( food and necessary household products); education fees; as well as other expenses related to insurance, energy, communications, the internet, among others.

In order to support the insured and his family’s financial stability during the year, it is crucial to find a balance