Six in 10 UAE workers rely on gratuity to fund retirement

 

Six in 10 UAE workers rely on gratuity to fund retirement

Dubai - Most expats in the region will get a gratuity payment when retiring from a company they have worked at for more than a year.

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A Staff Reporter

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Published: Mon 21 Jan 2019, 2:18 PM

Last updated: Mon 21 Jan 2019, 8:47 PM

Most UAE residents rely on their gratuity to fund their retirement, a new research has shown, and most of them will will take home more than Dh20,000 at the end of service.
The research from Old Mutual International and Quilter Cheviot highlights the major role end-of-service benefits play in the retirement plans of workers in the UAE.
Nearly nine in 10 individuals (84 per cent) say they will receive an end-of-service gratuity when leaving their company, the value of which exceeds Dh20,000 for most respondents (62 per cent).
Most expats in the region will get a gratuity payment when retiring from a company they have worked at for more than a year. However, there are some instances when the gratuity could be withheld, with the most common reason being some form of breach of contract.
The majority (62 per cent) of respondents stated that they want to retire in their home country. However, the survey was conducted soon after the UAE took the decision to introduce a new five-year visa for expat retirees older than 55, which may mean in the future more people choose to stay in the UAE for their retirement.
The results of the survey show that the UAE's popularity as a retirement destination may already be on the rise as in 2018, 18% of respondents said that they would retire in the UAE, compared to 15% in 2017.
However, a staggering 8 out of 10 people living in the UAE plan to continue working in retirement, either for social (45 per cent) or financial (35 per cent) reasons, with all (81 per cent) saying they expect to be self-employed.
In 2017, 43% of respondents expected to retire between the ages of 50-55 however according to the results of the 2018 survey, this has now dropped to 35% with more people believing they are likely to have to retire later in their life.
Nearly half (47 per cent) of respondents are expecting retirement to last between 11 and 20 years.


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