If you are in the UAE, you may have heard that the country has one of the best pension fund systems in the world. This is because it goes a long way to ensure that its citizens who retire after many years of work, enjoy amazing financial security in their post-work years. Although this fund was created to primarily b of benefit to the citizens of the UAE nationals, however, as a foreigner in the country, you can also enjoy retirement savings, but this is slightly different from what you will get as a local in the country. In this post, we take a look at the pension system in the UAE.
A look at the UAE pension fund
The UAE pension fund is lauded because of its ability to cater to the welfare of the citizens once they are no longer working actively. This pension system is overseen by the General Pension and Social Security Authority (GPSSA), which is a very popular body in the country. Its main function is to ensure that nationals of the UAE that are working in both the public and private sectors have solid financial protection. The UAE pension fund is created to make sure that eligible citizens are able to receive the best benefits once they retire.
A look at the top pension fund schemes in the UAE
The UAE is home to several pension fund systems. We have highlighted the best in the following section.
GPSSA (General Pension and Social Security Authority)
The GPSSA is a very popular pension fund system in the UAE. It is responsible for helping UAE nationals working across the country with effective pension services. However, GPSSA does not cater with UAE nationals who are located in Abu Dhabi. If you work in both the public or private sector in the UAE, then you can choose GPSSA. If you want to access the full pension fund benefits with this option, it is required that you should have worked for a minimum of 20 years. If you choose this option, then your contributions will be split between the you, your employer, and the UAE government.
ADRPBF (Abu Dhabi Retirement Pensions and Benefits Fund)
The ADRPBF is the pension fund that is recommended for the UAE nationals that are working in Abu Dhabi. This pension fund system is meant to covers workers who are in government institutions. In addition, ADRPBF is also available for workers in the private sector of Abu Dhabi. To be qualified to receive your full pension fund benefits with ADRPBF, you will need to have worked for at least 20 years. Employees who choose this option will be subjected to a contribution system in Abu Dhabi that is similar to GPSSA, however, there may be a little difference.
Private pension plans
Private plans are pension fund systems that are available for foreigners who are working in the UAE. These plans are available for all categories of UAE workers that are not covered under the national pension schemes. With these plans, you get to enjoy flexible services that gives you the ease to save for your retirement. Private pension plans offer you tailored services offered through different financial institutions in the country. Private pension plans can be accessed by both local UAE nationals as well as foreigners who want additional ways to save for retirement. The plans do not come with any mandatory requirements as you can easily choose any one of the plans on offer at any point in your career in the UAE. If you choose this option, you can decide on how much and how frequently to contribute to the pension fund.
Final word on the UAE pension fund system
The aim of the UAE pension fund system is to provide a comprehensive range of benefits to its retired citizens. It is the country’s way of ensuring that citizens enjoy the very best of financial security after they retire. While you are not a part of this national pension fund as a foreigner. There are other ways that you can prepare for your retirement in the UAE as a foreigner. Apart from receiving your gratuity from your place of work, you also have the option to invest in private savings plans. These plans are meant to allow foreigners in the UAE to prepare for their retirement. It is important to know that the government wants to preserve this pension system and even look for ways to make it better. This means that there might be so many juicy updates in the future regarding the UAE pension system.
