UAE Golden Pension Scheme for Expats: Everything You Need to Know

Dubai is often considered a great place to live and work. National Bonds recently announced the launch of the Golden Pension Scheme, which aims to encourage retirees from around the world to consider choosing the emirate of Dubai as their permanent residence and enjoy their retirement there.

It is hoped that the pension plan will assist workers in the UAE fulfill their end-of-service financial obligations and close the savings gap necessary for retirement.

The United Arab Emirates (UAE), the second-largest economy in the Arab world, has implemented several economic, legal, and social reforms in recent years to improve the country’s business climate, boost FDI, recruit qualified people, and attract entrepreneurs to locate in the country.

The Golden Pension Scheme of the UAE

Expat workers in the United Arab Emirates (UAE) can invest all or a portion of their end-of-service rewards (collectively called gratuity) accrued over the course of their employment as part of a retirement plan known as the UAE Golden Pension scheme.

The system is adaptable and flexible enough to meet the needs of enterprises with many employees. It allows for a wide range of options regarding the financial support afforded to expat workers and employees.

How Does the Golden Pension Scheme Work in the UAE?

Companies can enroll in the Golden Pension Scheme offered by National Bonds by either investing their employees’ end-of-service benefits in full or investing a portion of the total amount accumulated throughout their employment.

Foreign employees can contribute a minimum of AED 100 per month from their basic salary. You can benefit from this in addition to whatever gratuity your company offers. Employees can track their savings in real time through the National Bonds App.

 The National Bonds Pension Scheme allows employees to take funds out of the account if their current employer permits them. On the other hand, individual contributions are not restricted and can be withdrawn at any time.

Who Can Register in the Golden Pension Scheme?

Expats working in the private sector in the UAE are welcome to join the Golden Pension scheme. Pensions and other retirement benefits are provided to all government and private sector employees in the UAE once they reach the retirement age of 65 or have worked for the government or private sector for 20 years.

Workplace savings schemes for expats in the UAE are a relatively new concept. Still, before them, expats in the UAE had to choose between pension plans offered by asset management companies to high-net-worth investors or pension plans offered in the form of complex, expensive insurance-saving products with steep charges for withdrawing funds early.

Golden Pension Scheme for Expats in the UAE

Protecting the legal rights of foreign workers and employees is a primary goal of the UAE Golden Pension scheme. The program allows foreign workers to boost their savings and end-of-career benefits, which will help them prepare for the future and enjoy a more secure retirement.

Remember that there are other savings and investment plans offered by National Bonds for foreigners who don’t want to join the Golden Pension scheme. The Global Savings Club is one such organization; it’s a monthly savings program with a minimum contribution of Dh100 that’s run entirely voluntarily.

In addition, businesses can determine the percentage of their whole personnel participating in the program, giving them more flexibility.

Global Pension Scheme Investment Returns

Regarding investment returns, national bonds rank among the highest in the region and the best worldwide. Profits from the Golden Pension Scheme will be distributed to investors quarterly, with specific dates for allocation and distribution defined by the date the company gets the first deposit.

The corporation has authority over the redemption of the GPP. One lucky employee will receive Dh1 million in cash prizes every three months.

With the purchase of National Bonds, you can participate in a 35 million-dollar incentive scheme. The program’s ultimate prize of Dh1 million is awarded to two winners every three months. Over Dh423000 is awarded annually in various categories, including to women, youth, and consistent savers.

No minimum balance is required to participate in the GPP, and employees have twice as many opportunities to win with each Sukuk as they would with any other investment scheme. Staying on top of your savings increases your odds by a factor of four.

With GPP, businesses can easily and affordably offer their staff medical and other financial advantages.

The Benefits of the UAE Golden Pension Scheme

Among the advantages of the United Arab Emirates Golden Pension Scheme are the following:

  • Reasonable monthly payment
  • Reasonable and competitive rates of return on investment
  • Complete transparency about the assessment of profits and holdings
  • Transparency in retirement payouts, returns on investment, and prizes
  • Dubai’s reputation as one of the world’s most livable cities is likely bolstered by the United Arab Emirates Golden Pension program, which will entice more skilled workers from abroad to settle there.
  • When employees’ final compensation is invested in high-yielding assets like real estate and the stock market, they have a higher chance of closing the savings gap and preparing adequately for retirement.

It is hoped that the United Arab Emirates Golden Pension program will increase the number of skilled workers in the country and help Dubai become recognized as a top city.