Updated August 2023
Dubai is often regarded as one of the best cities in the world to live and work in. To further attract people from all over the world to consider making the city of Dubai their permanent home and spend their retirement, the National Bonds has recently announced the launching of the Golden Pension scheme.
Keep reading to find out more about the UAE Golden Pension initiative.
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What is the UAE Golden Pension Scheme?
The UAE Golden Pension scheme is a financial retirement plan where expat workers in the UAE are provided with the option of investing all of their accumulated end-of-service benefits (collectively called gratuity) over the course of their employment as a lump sum or investing only a portion of it.
The scheme is made to be compatible with businesses with a high number of workers and provides customizable and flexible solutions regarding the type of financial care to be provided for expat workers and employees.
How does the UAE Golden Pension scheme work?
Companies can sign up for the National Bonds’ Golden Pension scheme by investing all or a portion of the end-of-service benefits accumulated over the years for their employees.
Additionally, expat employees can also contribute at least AED 100 per month of their basic salary. This can be availed in addition to the earned gratuity provided by their organizations. Through the National Bonds app, employees can observe their savings in real-time.
Employees may withdraw money from the National Bonds’ pension scheme only when the company they’re working for permits them to do so. However, this does not apply to individual contributions which they can withdraw whenever they like.
Who is eligible for the UAE Golden Pension Scheme?
All expat workers employed within the private sector in the UAE are eligible to enroll in the Golden Pension scheme. As per the UAE government, all individuals employed by both the government and private sectors are eligible for pensions and other retirement benefits after reaching the retirement age of 49 or serving a total of 20 years.
UAE Golden Pension scheme for expats
The objective of the UAE Golden Pension scheme is primarily to uphold the rights of expat workers and employees. The scheme provides expats with the opportunity to increase their savings and improve their end-of-service benefits which will prove beneficial in future-proofing their financial and retirement plans.
Please remember that expats who choose not to participate in the Golden Pension scheme can always choose to invest in other National Bonds-operated savings and investment programs. One example is the Global Savings Club, a voluntarily operated monthly savings program with a minimum investment of Dh100.
In addition, employers have the freedom to decide how many of their workforce numbers would join the scheme.
What are the benefits of the UAE Golden Pension Scheme?
The following are the benefits of the UAE Golden Pension scheme:
- Affordable monthly contribution rates
- Competitive profit rates
- Transparency regarding profit calculation and holdings
- Visibility regarding end-of-service benefit amounts, profit returns, and winnings
The UAE Golden Pension scheme is expected to draw more foreign talents to the country and elevate Dubai’s status as one of the world’s most livable cities.