With no universal pension scheme in place for expatriates in the UAE, financial experts are urging residents to take personal responsibility for their retirement savings as early as possible. While the UAE offers an attractive tax-free income and a vibrant lifestyle, it lacks the safety nets many expats may be used to in their home countries.
“There’s no automatic pension, no monthly cheque when you retire,” said Mike Coady, CEO of Skybound Wealth and a long-time financial adviser to global expatriates. “If you want financial security later, you have to build it now.”
Though some new government-backed savings schemes have been introduced in recent years, most residents still rely on the End of Service Gratuity (EOSG) — a one-time payout based on tenure and final salary — which experts say is rarely sufficient to fund retirement.
Financial planners warn that one of the biggest mistakes people make is delaying retirement planning. Raji Kaippallil, founder of financewithRaji, explains the impact of starting early. “If you begin saving Dh1,500 a month at 25, with an 8% annual return, you could retire at 55 with Dh2 million. But wait until 45, and you’ll need to save Dh12,000 a month to reach the same goal,” she said.
According to Mike Coady, the minimum savings rate should be 15–20% of income by age 30, 25–35% by age 40, and 40% or more for those starting after 50. To achieve a retirement income of AED 20,000 a month by age 60, a savings pot of AED 4–5 million is needed — requiring monthly contributions of up to AED 10,000 depending on the timeframe.
Michele Carby, a managing partner at Holborn Assets, suggested using past income tax as a benchmark: “If you’ve come from a taxed country, the money you used to pay in taxes should now be saved toward your retirement.”
Where to save is also key. Financial experts recommend using international, tax-efficient investment platforms and diversifying portfolios across geographies and asset classes. Equities, particularly low-cost ETFs, are seen as suitable for long-term growth.
According to a YouGov-Zurich survey, 70% of UAE residents wish to retire in the country. Since the UAE does not impose income tax, pension withdrawals during retirement would not be taxed locally.
Despite this, many residents are still not saving. Experts blame lifestyle habits and misconceptions. “People confuse end-of-service gratuity with a retirement plan,” said Coady. “And the ‘expat illusion’ makes high earners feel financially secure when many leave with little to show for it.”
The message from financial advisers is clear: start planning early, spend wisely, and take full control of your financial future — because in the UAE, retirement security starts and ends with you.
