A recent YouGov survey, commissioned by Zurich International Life Limited, revealed that 7 out of 10 residents want to retire in the UAE. This sentiment is particularly strong among those earning over Dh25,000 a month. However, when it comes to saving for retirement, there is a noticeable gap in preparation.
While 75% of respondents feel optimistic about their retirement savings, many rely heavily on workplace savings or gratuity, potentially overestimating their long-term value. Over 60% believe Dh5 million or less will be enough for a comfortable life after retirement, signaling a significant miscalculation in retirement planning.
Ashika Tailor, Head of Business Development – Employee Benefits at Zurich, emphasized that planning for retirement is about sustaining a lifestyle for decades, not just reaching a certain financial milestone. For instance, a Dh2 million retirement fund may only provide about Dh6,600 per month, which might not be enough to cover increasing living costs such as healthcare, rent, and travel. 
Tailor pointed out that the real financial challenge in retirement comes years into the future when rising costs like rent, utilities, and healthcare could lead to financial strain. Without continuous investment or passive income, retirees risk running out of funds long before their life expectancy ends.
The UAE offers a retirement visa for those 55+ with savings or property worth at least Dh1 million, or a monthly income of Dh20,000. However, while gratuity payments can offer initial financial support, they cannot sustain a secure retirement on their own.
Experts advise residents to focus on diversifying their income streams through investments in stocks, real estate, and commodities. Tailor also recommends setting up dedicated education savings plans and securing health and long-term care insurance to safeguard against unforeseen expenses.
In conclusion, true financial security in retirement requires proactive saving, investing, and planning throughout one’s career.
