UAE Pension Scheme for Expats |
Retirement Plans & Golden Pension UAE
Coming Soon
UAE Pension Scheme for Expats |
UAE Pension Scheme for Expats: What You Need to Know
In recent years, the UAE has undertaken economic, social and legal reforms to:
• Strengthen the country’s business environment and reputation
• Increase foreign direct investment
• Attract a skilled workforce
• Give incentives to companies that could then set up, or expand, in the UAE.
These reforms include updates to the UAE Labour Law, which governs end-of-service gratuity and outlines the rights and benefits for expat employees regarding retirement and termination.
The Golden Pension Scheme (also known as the golden scheme) is the latest addition to the UAE retirement plan landscape. Before we explore this, we’ll run through the existing options expats have for retirement savings in the UAE.
End-of-service gratuity benefits
These benefits are mandated by the government for employees. The end-of-service gratuity is part of the traditional gratuity system, which has long provided a lump-sum payment to employees in the UAE when they leave a company after at least a year of service.
However, you’ll likely need more than this to comfortably retire on. To help, the government unveiled a new addition, called the Voluntary Alternative End-of-Service Benefits Scheme, which supplements or replaces the traditional gratuity system with a more structured savings and pension approach.
This latest initiative is optional and allows registered employees to invest their end-of-service gratuity benefits into investment funds that have been approved by the Ministry of Human Resources and Emiratisation (MOHRE) and the Securities and Commodities Authority (SCA).
Retirement planning for expats in the UAE
Having a retirement plan in the UAE is of vital importance. It’s important to know the key mistakes to avoid when planning for retirement to make the most of your UAE pension scheme and secure a comfortable future. To live in such a beautiful, glamorous country and enjoy the lifestyle on offer in your golden years, you need to ensure you have enough resources in advance. Retirement income planning is essential for expats to ensure a reliable and tax-efficient income stream throughout their retirement years. By planning for retirement, you can:
• Maintain your financial independence
• Reduce stress and uncertainty
• Know that cover expenses such as healthcare costs
• Leave a legacy for your family
