Expats in the UAE can now benefit from pension scheme

World Tuesday 11/October/2022 15:14 PM
By: Times News Service
Expats in the UAE can now  benefit from pension scheme

Muscat: Expatriates in the neighbouring UAE will benefit from a new pension scheme that was launched on Tuesday.

The maiden ‘Golden Pension Scheme’ was introduced by National Bonds, the UAE Sharia- compliant savings and investment company, owned by the Investment Corporation of Dubai.

The scheme will help UAE residents, in particular, the expats, as they plan their retirement.

In an official statement, National Bonds said the scheme is in line with the growing demand and targets “89 per cent of the UAE’s population that are expats.”

The new scheme will help corporate manage employee pension plans and assist them kick start their retirement savings. It will allow employees to benefit from the seamless digital platform and innovative and customisable plans to enhance savings. The first-of-its-kind Golden Pension Scheme in the UAE is a move to ramp up its suite of financial planning solutions for nationals and residents.

As per the terms of the new proposition, employees have the flexibility to contribute as little as AED 100 (OMR 10) on a monthly basis and earn a profit on the amount saved, which can be availed in addition to the earned gratuity provided by their organisation.

The scheme aims to support organisations with their employee retention efforts as well as help them plan ahead for the end-of-service financials.

Moreover, they can also be part of the National Bonds’ rich rewards program of AED 35 million (OMR 3.5 million) and are eligible for Life takaful cover provided by local Takaful Operators.

National Bonds Group CEO Mohammed Qasim Al Ali said: “Retirement planning is extremely important to ensure people stay financially stable and independent. Today, the UAE is home to over 8 million expats. With this first-of-its-kind initiative designed especially for the private sector, we want to enable expats to invest in their future while supporting corporates with their employee retention strategy. "In line with the vision of the leadership to make the UAE the preferred country of employment, the scheme enables companies to invest in their employees’ end-of-service funds so they can benefit from additional returns on their gratuity. Not many companies do this as accumulated funds are not being invested, which ultimately deprives the employees of these benefits.”