Earlier this month, I discussed the state of retirement planning in the UAE with Khaleej Times. We touched on the challenges and opportunities that expats face when it comes to securing their future in a region with no automatic pension schemes. Now, I want to dive deeper into the specifics: the options available, the traps to avoid, and how you can start planning today to ensure a comfortable retirement tomorrow.
Let’s face it, while the UAE gives you freedom, it doesn't offer you a fallback. For most expatriates, there’s no government safety net, no automatic pension contributions, and no monthly cheque when you clock out of your career. Your financial future? It's entirely up to you.
Having worked with thousands of expats over the past two decades, from Brits and South Africans to Australians, Indians, Lebanese, and beyond, I’ve noticed a common trend: the questions are always the same, but the urgency isn’t. The difference between those who thrive and those who panic at 55 is simple: planning.
I’ve lived in the UAE for over 20 years. Like many of you, I came here thinking it was a short-term opportunity, and never left. My journey mirrors that of many clients I now serve: two years turning into twenty, where life grows roots in the sand and financial decisions grow more complex, not less. I've seen the region change, mature, and modernise. But one thing hasn't changed: if you want security later, you need to build it today.
Here’s a closer look at what retirement in the UAE really means, and what you need to do now to secure your future.
Government & Public Sector: In 2022, Dubai introduced a voluntary pension scheme for government employees. It’s a positive step but applies to a small portion of the population.
Private Sector Employees: Most private companies offer an End of Service Gratuity (EOSG), a lump sum payout based on years worked and last basic salary. It’s not inflation-linked, not invested, and simply not enough.
New DIFC Model: Employees in the DIFC now contribute to the DEWS (DIFC Employee Workplace Savings) Plan. This mandates monthly employer contributions into managed investment plans, a pioneering model for the region.
But for most expats? You’re on your own. That means creating a plan from scratch.
Unlike many home countries, there is no state pension for expats. There are also no automatic employer contributions in most cases. Additionally, there is no mandatory retirement planning or need for tax relief on pension contributions. But here’s the good news: you’re not taxed on income here, which gives you an opportunity to build your retirement plan faster and more efficiently than in most other countries.
Let’s break this down by age bands. These are ballpark minimums, assuming a globally invested portfolio growing at ~7% per year.
If you want AED 20,000/month in retirement income starting at 60, you’ll need a pot of AED 4–5 million. Here’s how to achieve that:
If you don’t start early, you’ll be forced to catch up later—or settle for less freedom in retirement.
Building retirement wealth in the UAE requires a tailored approach, as there is no one-size-fits-all plan. However, there are several strategies that work for most expats in the region.
One key strategy is using international platforms. By holding assets in tax-efficient, flexible investment accounts, expats can benefit from global withdrawal options, risk management, and growth potential. These platforms provide the flexibility needed to manage wealth across borders.
For long-term savings, expats should also consider specific pension structures such as SIPPs for UK-based individuals, offshore personal pension plans (PPBs), or retirement accounts and mutual/ETF fund platforms. These options offer tax advantages and are ideal for those looking to secure their retirement while living abroad.
Diversification is another essential component of building retirement wealth. It’s important to avoid overexposure to any single region or currency, whether that be your home country or the US dollar. A globally diversified portfolio reduces risk and helps ensure steady growth.
Lastly, getting regulated advice is critical. A disciplined, structured financial plan is far more effective than chasing short-term returns. Real advice, provided by professionals who understand the complexities of expat life, will help expats make informed decisions that align with their long-term goals.
The same mistakes pop up time and time again. First, many expats delay their retirement planning, thinking, "I’ll start next year," but that’s a luxury you won’t have at 55. Another common mistake is confusing EOSG with a retirement plan, but it isn’t one. Many also assume they’ll retire back home, but plans change, and returning home isn’t always financially optimal. Another error is saving in cash, which leaves your money vulnerable to inflation. Relying on EOSG payouts is another mistake, as it’s rarely more than a few months' salary. Finally, many expats go it alone, not realising that wealth management is complex and that expert help is essential.
Dubai’s government pension reforms signal a broader trend: from lump-sum gratuities to structured savings. Over time, we’ll likely see more private companies offering pension or group savings schemes to attract talent, putting pressure on employers to formalise benefits.
For now, though, it’s still on you to build your own savings plan.
You can try to do this on your own, but very few people do it successfully. A qualified adviser brings discipline, structure, international tax, and regulatory knowledge, as well as planning for multiple jurisdictions.
A great financial adviser does much more than recommend funds or calculate numbers. They become your co-pilot, coach, and strategic partner. They provide accountability to ensure you stay on track. They offer behavioural coaching during market turbulence, help optimise your portfolio through asset allocation and diversification, and protect you from hype, whether it’s crypto, AI stocks, or property booms. They also help with budgeting and cash flow management to unlock more savings and offer strategic planning to adjust and optimise your retirement plan over time.
In short, a great adviser doesn’t just help you grow wealth, they help you keep it.
Retirement doesn’t just happen, it’s something you build. In the UAE, you have the perfect springboard: tax-free income, global investment access, and high earnings. But if you don’t act now, that freedom becomes your risk. No pension. No backup. Just lost time.
I’ve seen both the success stories and the regrets. I’ve helped people retire early and others rebuild after too many years of financial sleepwalking. The earlier you start, the less sacrifice you’ll need to make. So ask yourself: Are you where you need to be?
If not, start today. The cost of waiting is far higher than the cost of doing it right. And if you’re unsure where to begin, ask for help. You don’t have to do it alone, but you do have to do it.
As featured in Khaleej Times. Expanded with exclusive insights from Mike Coady, CEO of Skybound Wealth and 20-year Dubai resident.
To find out more about this topic and more, please fill in the form below to arrange a call back.
