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Retirement Planning For UAE Nationals vs. Expatriates

Everyone’s financial journey must have a retirement plan. But when we look at the retirement plan of people who live in the United Arab Emirates (UAE), it has two dimensions: expatriates and nationals. Due to these segments, UAE offers various options for retirement plans.

Emirati retirement plans are different and customized for them; given that the nation gives high value to its citizens, you can even get help from wealth management companies in Dubai to help you create retirement plans that will provide you with financial stability.

However, expatriates still have an option for retirement plans in the UAE. They have several options, excluding government pensions and benefits which only nationals can receive.

In this article, let’s see how expatriates and nationals can plan their retirement ahead.

Retirement Plans For UAE Nationals

Government Support – Emiratis have access to government support and benefits, mainly through the General Pension and Social Security Authority (GPSSA). UAE nationals get government pensions for their retirement based on the years they have served, their salary, and many other factors. When you retire, these pensions will provide a solid income.

National Savings – The government encourages its nationals to save for retirement by signing up for different schemes, including the Takaful savings program. This is one of the programs which will help you save your funds during the years of working, providing a path to accumulate wealth. Emiratis will also get housing allowances and financial benefits to enhance their retirement savings.

Longer Retirement Period –With advanced healthcare systems, the UAE’s quality of life and life expectancy have improved. This means the need for a longer retirement period is high, requiring a detailed financial plan and preparation through the retirement years. The UAE nationals must assess their retirement plans regularly to ensure they align with the demographic factors and evolving economy. 

Retirement Plans For Expatriates

Government Support Is Limited – The government-sponsored benefits are generally for nationals, so expatriates will not get the same level of access to such benefits. This means the UAE government doesn’t provide government pensions for expats, so they have to focus more on personal savings, investments, and employer support. 

Employer Support – Most expatriates working in Dubai and other areas of the UAE get benefits from their employers. These benefits include pension funds, retirement-related schemes, and end-of-service gratuities. But these benefits will differ according to the  employment contract and the employer.

Investments And Personal Savings – Expatriates are often required to plan their retirement saving accounts. They can focus on personal saving plans and investment options from investment companies In the UAE. However, unlike nationals, expatriates need to take proactive steps to secure a solid retirement plan, at least through investments back at their home country.

If you are an expatriate or a national, the primary requirement to make sound financial plans for your retirement is getting the necessary advice from wealth management companies in Dubai.

When discussing reputed and well-established investment groups, AIX Investment Group is the prominent market player we can’t overlook. With their expertise in the industry they have been able to guide many aspiring investors to make sustainable decisions regarding retirement plans for both nationals and expats.

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