A recent YouGov survey commissioned by Zurich International Life Limited reveals that 70% of UAE residents aspire to retire in the country, with the highest demand among employees earning Dh25,000 or more per month. However, while 75% feel confident about their retirement savings, a significant gap in financial planning remains.
Surprisingly, many residents underestimate how much they need to retire comfortably. Over 60% of respondents believe that Dh5 million or less would suffice for a secure retirement in the UAE. This trend is concerning, as experts warn that such a figure may not be enough to cover the long-term costs associated with aging, especially when considering the rising costs of healthcare, rent, and inflation.
Ashika Tailor, Head of Business Development at Zurich International Life Limited, explains that relying solely on workplace savings or gratuity could be risky. While gratuity can provide some cushion, it is insufficient for long-term financial security. For example, Dh2 million may last for 25 years, but at Dh6,600 per month, it won’t go far given today’s living expenses. 
The greatest challenge, according to Tailor, isn’t running out of money early in retirement, but the risk of running out later—20 to 30 years down the line—when inflation and healthcare costs may have risen dramatically.
Currently, the UAE offers a retirement visa for those aged 55 and above, provided they own property worth at least Dh1 million or have savings or income meeting certain thresholds. However, experts stress that a successful retirement plan goes beyond these basic requirements.
Gratuity Isn’t Enough for a Secure Retirement
Gratuity may act as a temporary safety net, but without additional savings or investments, it cannot ensure a secure future. As life expectancy increases, retirees will need 20 to 30 years’ worth of savings to support themselves comfortably.
Tailor advises residents to diversify their income streams, including investments in stocks, real estate, and commodities. Additionally, workplace savings plans, which invest employees’ end-of-service gratuity in accredited funds, can help bridge this retirement gap.
How to Plan for a Secure Retirement
In addition to workplace savings schemes, experts recommend other strategies to secure long-term financial health, such as:
- Education Savings Plans: Setting up a dedicated fund for your children’s education without dipping into retirement savings.
- Health and Long-Term Care Insurance: A solid insurance plan can prevent rising medical costs from depleting retirement funds.
In short, residents must be proactive in saving, investing, and planning throughout their careers to ensure a financially secure retirement in the UAE.
