Pension Plans for NRIs Living in UAE
If you are an NRI working in the UAE, it’s easy to focus on high earnings, tax-free income, and short-term savings. However, planning for retirement often gets overlooked. Unlike many countries, the UAE does not provide a mandatory pension scheme for expatriates, which makes it crucial for NRIs to take proactive steps to secure their long-term financial future.
GoldenRetire helps NRIs create structured, reliable, and tax-efficient retirement strategies, combining UAE benefits with Indian or international investment opportunities.
Why NRIs in UAE Need a Pension Plan
Expatriates in the UAE receive no social security benefits and rely mainly on End-of-Service Gratuity (EOSG) after employment. While useful, gratuity alone rarely covers long-term retirement needs. Key reasons NRIs should plan:
- No mandatory pension for expats
- Rising cost of living in UAE and globally
- Shorter work contracts & job mobility
- Healthcare and emergency costs during retirement
- Uncertainty about where to retire – UAE, India, or elsewhere
Top NRI Pension Options in UAE
1. End-of-Service Gratuity (EOSG)
EOSG is the default retirement benefit for private-sector employees in the UAE with at least one year of service.
| Years of Service | Gratuity Earned | Notes |
|---|---|---|
| 1–5 | 21 days’ basic salary per year | Lump sum payment |
| 5+ | 30 days’ basic salary per year | Maximum 2 years’ salary |
Drawback: It’s a one-time payout and doesn’t grow with inflation.
2. Golden Pension Scheme (National Bonds)
Launched in 2022, the Golden Pension Plan is a voluntary retirement plan that allows NRIs to build long-term wealth.
Highlights:
- Monthly contribution: AED 100 minimum
- Employer contribution: Optional, can include EOSG
- Investment: Sharia-compliant instruments (Sukuks, deposits)
- Returns: Profits shared annually based on market performance
- Rewards: Eligible for National Bonds AED 35 million program
Why it works:
- Affordable & flexible
- Transparent growth tracking via app
- No UAE retirement visa needed
3. MoHRE Voluntary Pension Schemes
The UAE government offers employer-facilitated voluntary pension plans approved by MoHRE, suitable for private sector, self-employed, and freelancers.
Key Features:
- Employee contribution: Up to 25% of salary (voluntary)
- Employer contribution: Optional
- Managed by licensed asset managers
- Flexible withdrawals: Partial or full allowed
4. DEWS Plan (DIFC Employees)
For employees in Dubai International Financial Centre (DIFC):
| Category | Employer Contribution | Notes |
|---|---|---|
| <5 years | 5.83% of salary | Employees can add voluntary contributions |
| 5+ years | 8.33% of salary | Funds invested in diversified Sharia-compliant portfolios |
Exclusive for DIFC employees but shows UAE’s future NRI pension approach.
5. International Pension Plans
NRIs retiring abroad or with global work history can choose international pension plans.
| Pension Plan | Suitable For | Features |
|---|---|---|
| QROPS | UK pension holders | Tax-compliant pension transfer abroad |
| International SIPP | Self-managed NRI plans | Multi-currency, flexible investments |
| Offshore Pension Plans | Frequent expats | Global access, long-term growth |
Always consult a cross-border financial advisor for tax and repatriation compliance.
Quick Comparison Table: NRI Pension Plans UAE
| Plan Type | Employer Contribution | Employee Contribution | Flexibility | Withdrawal Rules | Ideal For |
|---|---|---|---|---|---|
| EOSG | Mandatory | None | Low | Lump sum | All private employees |
| Golden Pension | Voluntary | AED 100+/month | High | Employer share restricted | Private-sector NRIs |
| MoHRE Voluntary | Optional | Up to 25% salary | High | Partial/full allowed | Private/freelance NRIs |
| DEWS (DIFC) | 5.83–8.33% | Optional | Moderate | Scheme-dependent | DIFC NRIs |
| International SIPPs | N/A | Flexible | Very High | Subject to plan | Globally mobile NRIs |
Alternatives to Traditional Pension Plans
1. Stocks, Bonds & Mutual Funds
| Investment | Risk Level | Return Potential | Ideal For |
|---|---|---|---|
| Stocks | High | High | Long-term growth |
| Bonds | Low–Medium | Moderate | Conservative investors |
| Mutual Funds | Medium | Moderate–High | Hands-off investors |
These can complement or replace traditional pension schemes, especially with early investment.
2. Consistent Savings Strategies
- Monthly savings accounts: UAE banks offer competitive interest for expatriates.
- Sharia-compliant savings plans: Ethical investing with halal sectors.
- Reinvest EOSG gratuity: Turn one-time payout into long-term corpus via National Bonds or FDs.
Tip: Automate SIPs or monthly deposits for disciplined growth.
3. Pension Plans with Life Insurance Cover
- Guaranteed period annuity: Payouts for fixed term even after death.
- Life annuity: Lifetime pension payouts, often with spouse continuation.
- ULIP-based pension plans: Combines life cover with equity/debt growth, flexible fund switching.
Useful for NRIs seeking both retirement income and family protection.
How to Choose the Right NRI Pension Plan
Ask yourself:
- How long will I stay in UAE?
- Do I want to retire in UAE, India, or elsewhere?
- What is my risk appetite?
- Do I prefer employer-supported or self-managed plans?
- Do I want global mobility and multi-currency options?
GoldenRetire experts can help match your risk profile, retirement goals, and investment horizon.
Retirement Visa vs Pension Plan
| Feature | Retirement Visa | Pension Plan |
|---|---|---|
| Purpose | Residency after age 55 | Build retirement corpus |
| Requirements | AED 1M savings or AED 20k monthly income | Open to all expats |
| Income Source | External deposits | EOSG + regular savings |
| Mandatory | No | No (recommended) |
Pension planning is about wealth growth, retirement visa is about residency rights.
Final Thoughts & CTA
Starting early is key. Combine EOSG with structured options like Golden Pension, MoHRE schemes, and international plans.
GoldenRetire
Plan smarter. Retire confidently. Secure your tomorrow.
Book a free consultation today with GoldenRetire experts and choose the pension strategy that works for your unique goals.
Frequently Asked Questions
Q1. Do expats get a pension in the UAE?
No, expatriates rely mainly on gratuity and voluntary pension schemes.
Q2. What is the UAE Golden Pension Scheme?
A voluntary retirement plan by National Bonds allowing long-term wealth building for NRIs.
Q3. Can NRIs in UAE invest in LIC or Indian pension plans?
Yes, via NRE/NRO accounts, subject to repatriation and compliance rules.
Q4. Is a retirement visa required to enroll in Golden Pension?
No, any NRI in UAE can join voluntarily.
Q5. How much should I contribute monthly?
Golden Pension starts at AED 100/month. Other plans vary based on income and risk appetite.