A new survey has discovered that 7 in 10 UAE citizens are keen to retire in the country, with the most powerful inclination observed among the ones earning over Dh25,000 consistent with month. The research, commissioned with the aid of Zurich International Life Limited and conducted by means of YouGov, works a hopeful but careful picture of how residents are making plans—or failing to devise—for their submit-retirement lives.
Encouragingly, 75% of respondents expressed optimism about having enough cash to fund their retirement. However, a deeper look into their monetary strategies shows that many could be underestimating the actual prices of a long and secure retirement. The observe suggests that 65% of residents are relying on gratuity or workplace savings to support their retirement—a approach that specialists warn could fall brief.
According to Ashika Tailor, Head of Business Development – Employee Benefits at Zurich International Life Limited, many UAE residents may be overly reliant on lump-sum end-of-carrier gratuity payments, which do now not provide long-term monetary safety. She mentioned that at the same time as gratuity may additionally offer an preliminary cushion, it can not maintain a retirement that would span or three many years.
A large portion of respondents—over 60%—consider that Dh5 million or much less could be adequate for a cushty retirement in the UAE. Alarmingly, 42 in keeping with cent assume they could control with Dh2 million or much less. Tailor cautions that this mindset reflects a critical false impression of retirement finances.
“If someone has Dh2 million and plans for it to ultimate 25 years from age 60, that breaks all the way down to approximately Dh6,600 according to month. When you account for inflation, healthcare, rent, and different growing fees, that determine can be pretty insufficient,” she defined.
Tailor emphasized that the most important economic chance is not walking out of money in the early years of retirement, however in later years—while medical wishes and dwelling costs can increase notably. “Essentials like lease and utilities tend to rise through the years. Without passive income or persevered investment growth, retirees can also find it hard to preserve their life-style,” she introduced.
The UAE does offer a 5-year retirement visa for citizens elderly 55 and above, furnished they meet sure financial thresholds: proudly owning assets really worth as a minimum Dh1 million, having monetary savings of Dh1 million, or keeping a monthly income of Dh20,000 (or Dh15,000 in Dubai). While those requirements offer a pathway for many, achieving and maintaining a quality retired life still requires diligent long-term planning.
One of the key takeaways from the survey is the need to reconsider the position of gratuity. Tailor explains that stop-of-carrier benefits are designed more as a transition buffer rather then a long-term retirement fund. “Relying entirely on gratuity is like trying to fuel a lifetime adventure with a single tank of petrol.”
To close the planning gap, financial professionals are urging both people and corporations to take proactive steps. Residents should start saving and making an investment early, diversifying their profits sources beyond employment. Tailor advocates for dependent savings plans, long-term investments, and financial schooling.
Companies also have a considerable function to play. The UAE’s Ministry of Human Resources and Emiratisation (MoHRE) regularly organizes workshops for employers to teach them approximately an opportunity voluntary give up-of-provider blessings system. This savings scheme, which employers can sign on for, allows organizations to make investments gratuity allocations into authorized price range, permitting employees to develop their financial savings over the years.
Despite the availability of those options, many employees throughout the UAE still lack access to or awareness of such workplace savings plans. Tailor believes that wider implementation and adoption of those schemes could notably improve financial results for retirees.
In addition to long-term financial savings, other financial tools inclusive of education savings plans and comprehensive medical health insurance are equally vital. Tailor warns towards compromising retirement financial savings to fund children’s training—a mistake this is nevertheless all too common. Structured plans that address both goals can help households secure their destiny on multiple fronts.
“Medical costs rise with age, and healthcare is considered one of the largest prices in retirement. Having the right coverage insurance can assist save you those costs from depleting retirement financial savings,” she said.
Ultimately, the survey sheds light on both the aspirations and the misconceptions that many UAE residents preserve approximately retirement. While the dream of retiring within the UAE is a sturdy and popular one, realizing it will require more than just optimism—it demands informed, disciplined, and strategic economic planning.
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