Retirement in Dubai

Pension benefits are paid to hundreds of millions of elderly people around the world. The pension system in Dubai also exists. Its rules vary depending on the status of citizen-foreigner or resident. What are the pension rules in the United Arab Emirates, specifically in Dubai? Let's check it out.

What do you find in the article?

• Pension system in the United Arab Emirates
• Pension for UAE citizens
• Retirement for foreigners in Dubai
• Retirement life in Dubai
• Questions and answers (FAQ)

Pension system in the United Arab Emirates

Who among us has not once dreamt of retiring in warm countries? In old age, people want to take comfort in life, take advantage of the great weather and enjoy life. Retirement living in Dubai is a great idea for living after work and taking a break from everyday life. Dubai is a luxurious, sun-filled city with positive energy and a high quality of life. What are the costs of living in retirement in Dubai? How do pension funds work in the UAE? And the most important question: can I retire on a paid pension in Dubai? Let's answer these questions.

Pension for UAE citizens

The UAE has a federal pension system. Most importantly, only citizens of the UAE or in some cases of the GCC countries (Saudi Arabia, Bahrain, Qatar, Kuwait, Oman) are entitled to a pension. In practice, this means the fact that classic pension benefits in Dubai are only available to Emirati citizens.

Public and private companies and entities are required to report their employees to the General Pension and Social Security Authority (GPSSA). The provisions of the pension law cover almost all UAE citizens, with the exception of local government employees in Abu Dhabi and Sharjah and private sector employees in the emirate of Abu Dhabi. An employer can make pension contributions from an employee if the employee is not less than 18 years old and not more than 60 years old, and is in good health at the time of employment, as evidenced by a medical letter, approved by the GPSSA.

What are the requirements to receive a pension in Dubai? A UAE national will be entitled to a pension if he or she is at least 60 years old and has made pension contributions for at least 15 years. A man can take early retirement if he is at least 55 years old and has worked for a minimum of 20 years. A woman who has reached the age of 50 and has worked a minimum of 20 years in her life can take early retirement.

A citizen of a GGC country is entitled to a pension in Dubai under the same conditions as in his or her own country if he or she is working locally in Dubai and has met the relevant criteria according to his or her own national regulations.

Retirement for foreigners in Dubai

As you can see, the Dubai classic pension is reserved for UAE and GCC nationals. This is not bad information! Retirement for foreigners in Dubai is as possible as possible. Dubai has a special visa programme for retirees. Many companies also offer special private pension plans. What does this consist of?

Retirees can live in Dubai without the need for a special invitation or sponsorship. This applies to all nationalities, including Poles. What is the process of arranging a pension visa for a Pole?
 

A retirement visa can be applied for for 5 years, renewable under the same conditions as when first issued. It is renewable indefinitely when special conditions are met. What are these conditions? Financial, divided into 4 categories. You can get a retirement visa if you meet one of the following conditions:
 

• Option 1: Your income is at least AED 180,000 per year, which is AED 15,000 per month (EUR 3,770).
• Option 2: You have AED 1.35 million in savings in a 3-year fixed deposit (approximately 340.000 EUR)
• Option 3: You have purchased a property in Dubai for which at least one payment to date has been AED 1 million (251.000 EUR)
• Option 4: A joint combination of options 2 and 3 worth at least AED 1 million (251.000 EUR) in a three-year fixed deposit and a property with a minimum value of AED 500,000 (126.000 EUR)
   

The second option is private pension plans in Dubai. Many companies, whether employee-owned or employment-independent, offer such private pension plans. Under such a plan, you donate a portion of your salary to the company and it takes care of your money and pays it to you in the form of an annuity when you leave your job and meet pre-agreed conditions.

In retirement, it is most convenient to have your own apartment and live on your own terms. If you are planning to retire in Dubai and want to buy a property, then read more about the ownership rights over property in Dubai.

Retirement life in Dubai

Retirement doesn't have to be boring and sad. Dubai is an exciting and ideal place to experience it. With sunshine, great weather all year round, world-class medical care and security, and a plethora of activities and services for the resident - Dubai is the place where your retirement will gain colour and joy.

Questions and answers (FAQ)

1. How does the pension system work in Dubai?

The pension system in Dubai operates on the basis of pension protection through the payment of benefits upon a citizen's retirement. The UAE pension is only available to citizens of the UAE or the GCC countries (Qatar, Bahrain, Saudi Arabia, Kuwait, Oman)

2. What are the requirements to receive a pension in the UAE?

UAE citizens can retire at the age of 60 after 15 years of service, at the age of 55 after 20 years of service and citizens at the age of 50 after 20 years of service. Foreigners can apply for a special 5-year renewable retirement visa.

3. Can you get a pension if you return to your country of origin?

For a citizen of the European Union or other countries, it is not possible to obtain a pension in Dubai if you do not meet the conditions set and intend to live permanently in your country. You must have a fixed income at a level set by the Dubai government or property at a value set by law.

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