UAE pension scheme among best globally

Dubai - Nation boasts one of the best-positioned programmes

The UAE is one of the top countries in the world where private savings are not required to supplement an individual’s pension after retirement, according to the 2021 UBS International Pension Gap Index.

The UAE offers most nationals a pension income almost equivalent to working income, said the report that analysed pension systems in 24 countries worldwide.

The index outlines to what extent an income solely from the mandatory part of each national pension system is sufficient to maintain an accustomed standard of living in retirement and secure a comfortable financial situation in old age.

In the UAE, Emiratis are eligible for pensions and other retirement benefits after reaching the retirement age of 49 or serving a minimum of 20 years in total. Expatriate employees have their end-of-service entitlement covered by the UAE’s gratuity scheme.

“The UAE boasts one of the best-positioned pension schemes globally. But even this system is not exempt from demographic shifts, putting pressure on it in the coming decades. While there’s time and opportunity for pension reform in the country, our role, as a trusted advisor to our clients, is to provide them with the insights and tools to take the necessary decisions throughout various life stages to meet their present and future financial needs.” Dr Niels Zilkens, managing director and head of wealth management for the Arabian Gulf and NRI at UBS, said.

— issacjohn@khaleejtimes.com