BAHRAIN: "Many can now expect 45 years in employment followed by 30 years of retirement"

MANAMA, Bahrain / Gulf Daily News / Business News / October 2, 2011

YOUR MONEY
Planning for income in retirement  

Compiled By Brian Davis

It is an unavoidable necessity these days to put aside something for old age. As life expectancy rises many of us can expect 45 years in employment followed by 30 years of retirement, living on into our 90s. You must plan effectively if you are not to be left out of pocket for three whole decades!

My wife and I are in our 50s but our children are in their 20s, we have been reading your columns especially the ones relating to pension planning and want to discuss this with them but with the age difference should the planning be very different?

In your 20s: focus on clearing your debts, save what you can afford. You probably have your first proper job and retirement seems a long way off; at this stage it's okay to allow other financial objectives to take priority. Clear debts and living costs and see if there's anything left over - if so squirrel it away!

In your 30s: reassess your debts and outgoings, if there isn't a company pension scheme get your own as soon as possible but see a financial planner first, think long-term with your investments; you may be getting married, starting a family or buying your first house - or a combination of all three! So assess your debt and think of ways to address it; secondly have sufficient for a "rainy day". There is a fine balance between saving for the future and paying off debt, particularly expensive unsecured debt such as credit cards and personal loans.

In your 40s: if you haven't started saving do something about it! Your earnings should be peaking, dedicate some of this to a pension. Ideally you have already built up some retirement savings and if you haven't it's not too late but you must act now. Your earnings are likely to be approaching their highest during this decade and you should be in a good position to dedicate some real money towards your pension plan.

The 50s: maximise your contributions and reduce risk in your pension plan. This is the time to get serious - this time is probably the most important of all when it comes to retirement planning. Do you have a retirement date in mind? It doesn't have to be fixed but serves as a guide, calculate the size of income you want. A good financial planner is very helpful when it comes to this; you will need to position your pension fund for producing income and you don't want any sudden volatility reducing the value at the time when you might need it.

The 60s: check all your debts are in order including your mortgage. Decide whether you will buy an annuity or take a drawdown and see a financial planner before you take any action. During this decade you will be making the most important decisions about how your pension fund produces cash and income in retirement.

YOUR MONEY
is compiled by Brian Davis,
Consultant, Bahrain Financial Planning 

E-Mail: Brian@AssetProtectUK.com

© 2011 Gulf Daily News

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BAHRAIN: National strategy outlined for welfare of the aged

. MANAMA, Bahrain / Gulf Daily News / October 19, 2009 A national strategy aimed at promoting the welfare of Bahrain's elderly was yesterday outlined. The Cabinet also discussed a national draft plan to improve the living standards of those in vulnerable social conditions. Both schemes came under the spotlight as Prime Minister Shaikh Khalifa bin Salman Al Khalifa chaired the weekly Cabinet meeting at Gudaibiya Palace. The three-pronged strategy stresses first the need to improve the elderly's welfare and ensure them a decent living. It aims to consolidate geriatric medical services, promote quality living and provide appropriate healthcare for this vulnerable social category. It also aspires to provide decent housing conditions and an elderly-friendly environment. "The national plan seeks to ease elderly people's integration and avert their marginalisation for the community to continue benefiting from their lifetime expertise," Cabinet Affairs Minister Shaikh Ahmed bin Ateyatala Al Khalifa said. A memorandum reflecting the views of the National Society for the Elderly was submitted by Social Development Minister Dr Fatima Al Balooshi. The strategy and national plan were referred to the committee in charge of social and family services for more scrutiny. The Cabinet decided to intensify nursing and social supervisory visits to elderly people's houses. The measure is in line with a parliamentary request submitted to the government. [rc] Copyright 2009 Gulf Daily News

BAHRAIN: NBB Donates BD 20,000 TO NBB Home For Elderly

. MANAMA, Bahrain / NBBonLine / Social Responsibility / June 1, 2009 National Bank of Bahrain has made a donation to NBB Home for Elderly. Mr. Khalid Ali Juma, the Bank's Executive Assistant General Manager, Corporate Services Group presented the Bank's cheque for BD 20,000 to Dr. Bardia Al Jeeb, Assistant Undersecretary of Social Welfare & Rehabilitation & Training, Minister of Social Development as part of the Bank's donations and contributions programme for the year 2009. Dr. Badira Al Jeeb thanked NBB and expressed her gratitude to the management for their generous contribution. She conveyed her wishes and the wishes of the members of the Centre’s Board of Directors to the Bank's Board of Directors and Mr. Abdul Razak Abdulla Hassan Al Qassim, the Chief Executive Officer & Director. The contribution is immensely helpful in carrying out the programmes and activities undertaken by NBB Home for Elderly. Consequently, it contributes to the Home's humane mission in the service of its members and provides rehabilitation support. Dr. Al Jeeb also said that she takes pride in this commendable gesture by NBB and for its support to similar societies and organizations, who assist a wide segment of needy people in the Kingdom of Bahrain. On his part, Mr. Khalid Ali Juma praised the welfare and care that NBB Home for Elderly provides and wished them all success in the work that they undertake on a voluntary basis. The audience was attended by Mrs. Haifa Al Derazi, Superintendent of the NBB Home for the Elderly, and Mr. Nasser Mohammed Nasser, Secretary to the Board of Directors of NBB. © National Bank of Bahrain

BAHRAIN: National Bank donates BD5,000 NBB funds for the Elderly

. MANAMA, Bahrain / Gulf Daily News / May 17, 2009 National Bank of Bahrain (NBB) donated BD5,000 to Al Manar Parents Care Centre. Chief executive officer Abdul Razak Abdulla Hassan Al Qassim presented the cheque to centre chairman Shaikh Daij bin Khalifa Al Khalifa. Shaikh Daij thanked the bank for its support and said the donation would help the centre continue with its programmes. Mr Al Qassim said the bank was fully committed to its annual programme, launched in 1980, to contribute to community development. Personal banking group executive assistant general manager Abdulaziz Abdulla Al Ahmed and board secretary Nasser Mohammed Nasser were present. Copyright 2009 Gulf Daily News

BAHRAIN: Home Joy For 14 Needy, Aged Families

. MANAMA, Bahrain - Gulf Daily News - October 17, 2008 FOURTEEN families were yesterday handed keys to their new homes built as part of a project to help hundreds of needy Bahrainis. The keys were presented to the owners at a ceremony held in the Al Fateh Fort area of East Riffa following the directives of His Majesty King Hamad. Held under the patronage of Bahrain Royal Equestrian and Endurance Federation first deputy chairman Shaikh Khalid bin Hamad Al Khalifa, the event was organised by the Southern Governorate and the Housing Ministry. Housing Minister Shaikh Ibrahim bin Khalifa bin Ali Al Khalifa, Southern Governor Shaikh Abdulla bin Hamad Al Khalifa, other dignitaries and guests attended. The project includes 100 housing units. Shaikh Khalid said it was an honour to celebrate the implementation of one of King Hamad's projects to help his loyal and generous citizens. "It is a great occasion to congratulate the families who will benefit from these housing units," he said. "These units are part of the government's policy under the directives of King Hamad to provide proper housing for families in the kingdom." Shaikh Khalid said the project had only been possible because of the hard work of the Southern Governorate and Housing Ministry officials. "This project is considered as a humane initiative to find solutions that will help in providing the right place for our loyal citizens," he said. "I would like to thank all those who have put a lot of efforts to ensure the implementation of the project." His Majesty has also ordered the construction of a commercial complex as part of the housing project, Shaikh Khalid said. The BD2.5 million project covers an area of 16,600sqm. Meanwhile, Al Fateh Fort residents were relieved after receiving the keys to their houses and thanked King Hamad for his grant. The 14 families, who have lived in the area for years, have suffered because they did not own the land that their previous houses were built on. They had rented the land from the municipality more than 60 years ago and some homes were built from wood and tin. All the families had low incomes, while some were unemployed because of old age and ill health. Many of the families include divorcees and widows, who were forced to look after their large families alone, surviving on donations. In 2002, the families were visited by Crown Prince and Deputy Supreme Commander Shaikh Salman bin Hamad Al Khalifa accompanied by Shaikh Abdulla. Shaikh Salman sent directives stressing the need to improve the situation for the families and build them new homes. King Hamad also visited the area in 2005 to lay the foundation for the housing units and promised the families that the project was for them and their children. Resident Abdulla Mohammed said that he had lived in the area for more than 60 years, where he raised his three daughters and a son in a house that was built from wood and tin. "I then renovated one room with bricks and stones and replaced the ceiling wood. In the late 1970s, I built a room with bricks so that I can have electricity in the house and I was the first to bring electricity into this area and everyone followed suit," he said. "The house then became dangerous as the walls began to crack. Renovation was useless and the house was too small to accommodate two families as I had my son and daughters' spouses live in it." Mr Mohammed thanked King Hamad for the grant, which enabled him to get a new house in the same area where he had grown up. Another resident Aqdas Asgar said that she had lived and raised her orphaned children and her grandchildren in her previous house that was built from wood, tin, brick and cement. "That house had so many memories but was hazardous and was infested with insects and rats," she said. "I was really happy when I saw Shaikh Salman stand next to my house when he visited the area in 2002. Since then I had been hopeful that there will be a day when I will live with my son under one roof after he and his family moved out as the previous house was too small." rasha@gdn.com.bh Copyright © 2007 Gulf Daily News

BAHRAIN: Council to review law to help retirees, disabled

. BAHRAIN (Bahrain Tribune), September 5, 2008: By Alexander M. Arrackal The Muharraq Municipal Council has decided to review the law related to commercial establishments on non-commercial roads. The council plans to permit retirees with low pension and disabled citizen to open shops at homes and in garages. Council Vice Chairman Abdulnasser Al Mahmeed told the Tribune that the review would be on a selective basis. Applications would be considered on merit, he said. "We are taking a human side. Earlier, it was a blanket 'no' to opening establishments. If such applications were approved, then all applicants must be given permission. The ministries of Works, Housing, Interior, Municipalities Affairs and Agriculture and the General Directorate of Traffic would have to give approval for grading the road as commercial," Al Mahmeed said. "We have received at least 10 applications from handicapped people who have no income other than the allowance they receive from the Ministry of Social Development. The allowance is hardly enough to make both ends meet, so we have decided to take up their cases and support them." He said the move was expected to benefit many households, especially in the rural areas of Muharraq. The low-income pensioners have served the nation for years and fight hard to make ends meet after they retire - especially as the prices of commodities are going up. "These two categories of people need to be looked at differently and so we have decided to help them open shops at homes or in garages," he said. The decision was taken at the first general committee meeting of the council. Opening of commercial establishments along non-commercial roads is not permitted by the Ministry of Municipalities Affairs and Agriculture. There was a move to close down and penalise all such establishments that opened on pocket roads. Councillors say commercial roads have parking infrastructure, whereas the side roads have no such facility and opening an establishment along this road would inconvenience motorists and residents. alexander.arrakel@bahraintribune.net © Bahrain Tribune 2008

BAHRAIN: Parliament reviews draft law on elder abuse

MANAMA, Bahrain (Khaleej Times), July 20, 2008: Individuals who abuse elder people in their care could face jail and a fine of no less than BD100 under a draft law being reviewed by parliament in Bahrain, a lawmaker said yesterday. Tougher punishments would be imposed on those offenders who were found to be close relatives of the elderly. The elderly rights draft law penalises maltreatment of aged people, especially if the offender is caretaker of aged people, including family members and employees at special homes for the elderly. “This is a great draft law that could safeguard the rights of elder people and ensure them better living conditions in appreciation to what they gave to their families and country,” member of Al Manber Islamic Bloc and Head of the Parliamentary Service Committee, Dr Ali Ahmed told Khaleej Times. The bill has been reviewed by the service panel and would be deliberated by parliament at a public session after the recess. “We have drafted the bill after a study by our political office reveals that 55 per cent of the elderly in Bahrain live below the poverty line as most of them receive low pension which is not enough to buy medicines. Then there are people who have no incomes and live on charity,” Dr Ali explained. “The bill will make the government responsible for the elderly by offering them monthly social assistance to be financially independent.” Copyright © 2008 Khaleej Times, UAE

BAHRAIN: Row over women's early retirement

BAHRAIN (Gulf Daily News), May 13, 2008: A MOTION to allow female civil servants take early retirement at the age of 50 was blocked yesterday by the Shura Council. Councillors described the government-drafted bill, originally proposed by parliament and approved by MPs last month, as unconstitutional, discriminatory and dangerous. Pension Fund Commission officials said at yesterday's weekly council session that the scheme would cost the fund BD173.5 million over the next five years. Under the law, female civil servants would be given five 'virtual years' at 50, to ensure they get the same benefits when they retire at 55. Council services committee chairman Dr Bahiya Al Jishi said the law was discriminatory as it differentiates between male and female civil servants. "The problem is that those behind the law think that females are fragile and could break easily, something I am here to say is wrong," she said. "Basically, this law is being launched to remove females from the labour market and pave the way for more men. Council legislative and legal affairs committee vice-chairman Sayed Habib Hashim said the law was found to be unconstitutional after being studied by his committee. "The constitution doesn't differentiate between men and women," he said. "This law suggests women are incapable and weak and can't handle work after the age of 50. "This is wrong because most women continue achieving success after the age of 50. "Pushing them out with this dangerous law means that we deprive them of an opportunity to reach the top." However, councillor Weddad Al Fadhel said the law would be voluntary, not compulsory. "It means that women would have the choice to either leave at the age of 50 or stay until the retirement age," he said. Council public utilities and environment affairs committee chairman Faud Al Haji added the law should not be passed because it discriminates against men, not women. "Female civil servants have around 200 days' holiday a year - if we take into consideration maternity leave, days off if they become widows and breastfeeding time-off, in addition to their annual leave," he said. "And now we want them to get early retirement." Mr Al Haji said studies showed women lived longer than men. "Men don't live much and they are the ones who should be getting early retirement. "When the next term comes in October, I will propose a law asking for early retirement for men," he added. Fund assistant general manager for pension affairs Abdullatif Al Zayani said the law would encourage women to take early retirement, rather than encourage them to stay in their jobs. "They would get a better pension if they decide to leave early rather than stay, which we believe shouldn't happen," he said. "The only GCC country with such a scheme is Kuwait, but women are forced to contribute more to the fund to get such privilege. "Here everyone pays the same, without discrimination. "The fund will go bankrupt, considering that now three employees' contributions are being given to one pensioner. "With this law, it will be five to one, which would be more disastrous." The bill will now be referred back to parliament, but if MPs insist on it, it will return to the Shura Council again for a second review. If it is opposed, it will be scheduled for a joint National Assembly session, in which both chambers would sit for a vote. Copyright © 2007 Gulf Daily News

BAHRAIN: Better homes for elderly soon

DUBAI, UAE (Khaleej Times), April 1, 2008: By Suad Hamada (BAHRAIN BEAT) SMALL elderly homes would be established within residential areas in all governorates of Bahrain. The Minister of Social Development Dr Fatima Al Baloushi said the homes would be equipped with the needed tools to make the lives of the elderly more productive and happy. “The project would enable the elderly to feel that they are still attached to their living atmospheres and not isolated as their friends and neighbours can visit them,” she said. The project would start with the establishment of the homes in Um Al Hassam, Buri and Muharraq and then in Central and Southern governorates in association with NGOs and the private sector. The government has been holding awareness campaigns, workshops, honouring ceremonies and interviews as part of a comprehensive programme to highlight the importance of supporting the elderly. The government has committed itself to providing senior citizens with health, social, psychological, residential and recreational care. "We are keen to encourage senior citizens to be productive and less isolated, especially those in homes for the aged," she said. "We are also working on a national action plan for the older persons to protect their rights and provide them with better rehabilitation services. "This would stress the importance of keeping the elderly in a safe and pleasant atmosphere, giving them proper day-care services and support them." Copyright © 2008 Khaleej Times

BAHRAIN: Medical Centre For Elderly Opens This Month

. MANAMA, Bahrain / Gulf Daily News / January 2, 2008: A medical centre, donated by Ebrahim Khalil Kanoo, to be opened later this month will be a boost for Bahrain's elderly. Its official opening will be held by the middle of this month, said Health Ministry Under-Secretary Dr Aziz Hamza. The Ebrahim Khalil Kanoo Community Medical Centre, built at a cost of BD690,000, is a donation by Ebrahim Khalil Kanoo to the people of Bahrain, he added. The family handed over the project to the ministry in April last year, which originally planned to outsource the centre to the private sector to run. However, it is now being decided that the ministry will run the centre, Dr Hamza told the GDN. "The recruitment of doctors, nurses and other health workers required for the centre has been completed," he added. The 54-bed centre has been designed by Mohammed Salahuddin Consulting Engineering Bureau. The 2,100sqm facility is located near the Salmaniya Medical Centre. The two-storey building has separate wards for men and women on the first floor. The outpatient and administration wing with utility services is on the ground floor. The centre is also equipped to conduct house calls for the elderly and will be provided with an ambulance service facility by the Health Ministry. By Soman Baby Copyright © 2007 Gulf Daily News

BAHRAIN: 63-Year-Old Grandmother of 7 Stranded

. MANAMA, Bahrain / Gulf Daily News / October 8, 2007: Family SOS By Aniqa Haider An Indian woman stranded in Bahrain is hoping to legalise herself, her 37-year-old daughter and her seven grandchildren, under the government's general amnesty. Kunhipurayil Ayisha, aged 63, came to Bahrain in 1985 to work as a housemaid for a Bahraini family. She worked for almost a year and got married to her Bahraini sponsor, who she said promised her a good life. "I came to Bahrain to work as a housemaid 22 years ago and after a year, my Bahraini sponsor proposed marriage and we got married legally in the mosque and lead a pleasant life," said Ms Ayisha. "But unfortunately my husband passed away after 13 years of marriage." The couple did not have children and Ms Ayisha said she never applied for a Bahraini passport. "I thought I wouldn't need one, but when I checked with the immigration after my husband's death, they said I should have valid passport and residence permit to apply for the Bahraini passport," she said. "As I was alone and had no-one else to support me, I brought my two daughters, Waheeda and Rasheeda from my earlier marriage, who were living in Kerala, India, to live with me. "I couldn't bring my only son, Raees, who disappeared at the age of 13, when I was in Bahrain." Ms Ayisha said she was getting a pension of BD50 per month following her husband's death, but had not received it for the last five months. She said pension officials had called her to their office and told her she was no longer entitled to the payment, since she was not a legal resident. "I am interested in applying for a Bahraini passport, but, as my Indian passport has expired long ago, I am not able to apply for one," she said. Ms Ayisha says she and her daughters and grandchildren desperately want Bahraini nationality, so they can stay in what has become their home - but need Indian passports and valid visas before they can apply. "It would be very difficult for us to go back to India," she said. "As my daughter's seven children, who were all born in Bahrain, don't know any other language than Arabic, they wouldn't be able to settle there." The chidlren's mother Waheeda was married to an Arab, whose father was a Saudi and mother a Bahraini. "My husband had no passport from either country," said Waheeda. She said she and her husband had four girls and three boys, but divorced two months ago. The eldest, a daughter, is 20 and the others are all school-going age, but had to stop going to school because following the divorce, they were left without legal documents. Waheeda says her Indian passport has expired and she has been unable to get work. "I am getting BD100 per month from my ex-husband for looking after my seven children, which is not enough," she said. "I am aware that the Indian Embassy is not in a position to do anything in this matter, but if I and my children could get Bahraini passports, it would be good for their future." "My eldest daughter, who finished high school two years ago, is sitting at home as she cannot apply for jobs." "If she does, they ask her to bring her valid passport and CPR, which she does not have." Waheeda said she was staying in a rented flat in Tubli and paying BD150 along with the other daily expenses. "I worked as a maid in some houses for a while but faced many problems, so I left and now I depend on help from other people," she said. "Some of the social workers are helping me to manage with the daily expenses, by paying the little amount they raised for my children." "But I need a permanent solution to this problem, as I don't want my children to suffer like myself and my mother." Waheeda's sister went back to Kerala five years ago to take care of their elderly relatives and got married three months ago. Ms Ayisha and Waheeda explained their current situation to Indian Ambassador Balkrishna Shetty during an open house at the embassy. They asked him to help renew their Indian passports, so they could apply for Bahraini nationality. An Indian Embassy official said he was aware of the case and that the embassy was working on the renewal of their Indian passports. Copyright © 2007 Gulf Daily News

BAHRAIN: $34 Million Resort for Elderly Under Construction

. BAHRAIN / Gulf Daily News / December 27, 2006: A $34m health resort for elderly people is being built in Bahrain, Gulf Daily News reported. The Al Farabi Care Centre in Busaiteen will include a four-star hotel, six apartment buildings, a commercial complex, health spas, clubs and clinics as well as open green areas and shaded parking. An exclusive medical center for the elderly will have seven different departments and 53 beds as well as medical staff specializing in long-term care. The project will encourage medical tourism, a council official said. Source: Gulf Daily News