UAE | Employment

No early retirement plan for UAE expats

Study shows people in region are using extra income to supplement their own pension fund

  • By Kevin Scott, Staff Reporter
  • Published: 00:07 August 7, 2008
  • Gulf News

Dubai: Expatriates living in the UAE are the most pessimistic in the Middle East about retiring before they reach the age of 60.

Research from Zurich International Life (ZIL), an insurance-based financial services provider, reveals two-thirds of expats living in the Middle East hope to retire by 60 but far fewer are confident of doing so.

The data shows despite an average of 60 per cent of expats targeting an early retirement, only 48 per cent of foreign workers in the UAE believe they will achieve it - compared to 71 per cent of expats in Bahrain and 49 per cent of expats in Qatar.

In a bid to redress the discrepancy, expats across the region are taking matters into their own hands as the research shows an average of 35 per cent of respondents have started their own pension plan.

Gulf News spoke to several UAE-based expatriates yesterday and found they had no plans to retire early.

Alan Cunningham, 45, the chief executive of Earthbeat Events, a Dubai-based events management company, said there was no way he would be retiring before the age of 60.

"I think the reason expatriates in the UAE are so pessimistic about retiring early is related to the cost of living. It would be difficult to retire here as, unlike in the UK, you wouldn't be entitled to a pension or any benefits.Michael: Engelhardt, 53, the managing director of a distribution company, said expatriates were pessimistic about retiring in the UAE because they weren't entitled to health insurance.

The Zurich Wealth Monitor - a study into the future plans of 700 expat professionals living in the UAE, Bahrain and Qatar, reveals 56 per cent of respondents are using their extra income to supplement their retirement fund.

Paul Haran, Zurich's Middle East Regional Director, said: "In today's economic climate, expats are well advised to take responsibility for their financial future. Whilst it is not surprising to find a gap between the ideal and the realistic retirement age, it is encouraging to see so many expats taking steps to redress the imbalance."

Do you think you will be able to retire at 60? What, according to you, is the best age to retire? Why? What are the dreams you hope to fulfil before and after you retire? Tell us at letter2editor@gulfnews.com or fill in the form bellow to send your comments.


Your comments


I will be able to retire at 57, but I don't think I want too. I would rather opt for a part time job, or work from home when the companies here realize that people can do a good or even better job from home.
Maryam
Sharjah,UAE
Posted: August 07, 2008, 12:25

As far as my knowledge is concerned 75 percent of Expatriates are working here struggling to meet both ends of life and least bothered about their future especially bachelors, because they have neither choice to leave this place or settle down somewhere else. They are not in a position to plan their future through various investments with their limited income. So most of them are prefer to continue their work as much as they can.
George
Abu Dhabi,UAE
Posted: August 07, 2008, 12:20

Most expats plans to retire early here in UAE as most of them are planning to stay in other country like USA or Canada were they'll able to become an immigrant. Unlike here were there is no pension plan offered by the company and no security. In my case where'in I'm reaching the age of 60, still I have no plan to retire. The best age to retire is when you were no longer able to do your job or you'll be incapacitated to perform your duty. So why retire early were you can still utilize your knowledge for better. In this is the only were you can avoid Alzheimer.
Roberto
Dubai,UAE
Posted: August 07, 2008, 12:15

No way. Given the ever increasing cost of living, high educational expenses for kids and absence of social benefits, I believe, I will have to continue till 65 or maybe more
Salim
Dubai,UAE
Posted: August 07, 2008, 11:49

As cost of living is on boom, I am planning to continue my job or may be business in future till 65, if my physical body permits me.
ISHAQ
DUBAI,UAE
Posted: August 07, 2008, 11:37

The main problem with all the surveys, let it be rent, increased cost of living, inflation, the surveys are all done at the level of the creamy layer of the society who are well covered in all aspects. If you want to know the real facts, plz come down to the Middle.
Francis
Dubai,UAE
Posted: August 07, 2008, 11:33

If at all we carry out another survey, we would conclude that majority of the expat in Middle East don't live after age of 60. Life is so stressful here and leads to silent killing diseases like Diabetes, Cancer, Blood pressure and Heart diseases. Those who survive with the above conditions, realize they are not fit to work and earn and the worse it becomes when they spend their hard earned money in medications. There is no room for optimism here.
Abc
Dubai,UAE
Posted: August 07, 2008, 10:26

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