UAE Expat Retirement Calculator
Project your UAE savings, monthly contributions and end-of-service gratuity to retirement, compare them with the inflation-adjusted pot you need and find the extra monthly saving that closes the gap.
| Years to retirement | — |
|---|---|
| Growth of current savings | — |
| Future value of monthly savings | — |
| End-of-service gratuity at retirement | — |
| Pot needed (today's money → future) | — |
| Shortfall / surplus | — |
| Monthly saving needed to close the gap | — |
| Sustainable income from the pot | — |
| Real (inflation-adjusted) pot | — |
In short
UAE expats get no state or employer pension — only the end-of-service gratuity (21 days of basic a year for five years, 30 days after, capped at two years' wages) plus their own savings. A 35-year-old with AED 200,000 saved, saving AED 5,000 a month at 6% with a AED 15,000 basic reaches about AED 4.6 million at 60, but funding AED 15,000 a month of today's spending for 25 years at 3% inflation needs about AED 6.8 million.
Who this is for: Expatriates of any nationality working in the UAE with no pension who need to know whether savings plus gratuity will fund retirement.
Retiring as a UAE expat: no pension, so the maths matters
Expatriates in the UAE pay no income tax but also build no state pension, no employer pension and — unless they are in a DIFC/ADGM savings scheme — nothing beyond the end-of-service gratuity: 21 days of basic salary per year for the first five years and 30 days after, capped at two years of wages. On a AED 15,000 basic, 25 years with one employer produces about AED 352,500 — useful, but not a retirement.
- Real return: what counts is return minus inflation. At 6% growth and 3% inflation the real return is about 2.9%, so a pot needs to be roughly 25–30× first-year spending to last 25–30 years.
- Where to save: many expats use low-cost global index funds through an international broker or a UAE platform, UAE National Bonds, or a home-country pension (UK SIPP, Indian NPS, US IRA if eligible); avoid long lock-in savings plans with high early-exit charges.
- Gratuity risk: changing employer restarts the clock and a resignation in year one pays nothing; some employers now fund gratuity into a DEWS-style scheme, which protects it.
- Home-country entitlements: check whether voluntary contributions (UK Class 2/3 NI, for example) keep a state pension accruing cheaply while you are abroad.
See also: Retirement Savings Calculator.
Assumptions
- Pot = savings × (1 + r)ⁿ + monthly savings compounded monthly + gratuity (21/30 days of basic per year of total service, capped at 24 months of basic).
- Pot needed = present value at retirement of inflation-linked withdrawals for the retirement years (growing-annuity formula) of (spending − other pension) inflated to retirement.
- Extra saving = shortfall ÷ future-value factor of a monthly annuity; sustainable income = pot ÷ the same annuity factor, shown nominal and in today's money.
Worked example
Savings grow to AED 858,000; monthly contributions add AED 3.38 million; gratuity after 28 years of service hits the two-year cap at AED 360,000 — total pot about AED 4.60 million at 60 (about AED 2.20 million in today's money). Spending AED 15,000 a month today is AED 31,400 a month at 60; funding that for 25 years with inflation-linked withdrawals needs about AED 6.82 million, so there is a shortfall of roughly AED 2.22 million: saving about AED 8,280 a month in total (AED 3,280 more) closes it. The projected pot alone supports about AED 21,200 a month at 60 — AED 10,100 in today's money.
Frequently asked questions
Do expats get a pension in the UAE?
No. There is no state pension for non-nationals and employers are not required to provide one; the end-of-service gratuity and your own savings are the entire plan, plus any home-country pension you keep contributing to.
How much do I need to retire from the UAE?
A common rule is 25–30 times your first year of retirement spending if the pot must last 25–30 years with inflation-linked withdrawals — AED 4.5–5.4 million for AED 15,000 a month in today's money, less any other pension.
Is gratuity enough for retirement?
Rarely: even 25 years with one employer on a AED 15,000 basic pays about AED 352,500, and it is capped at two years of total wages. Treat it as a bonus, not the plan.
Can I stay in the UAE after I retire?
Yes — the retirement visa (age 55+) requires AED 1 million in savings or property, or income of AED 20,000 a month (AED 15,000 in Dubai); the Golden Visa is an alternative for investors.
What return should I assume?
Long-run diversified equity portfolios have returned roughly 6–8% a year nominal before fees; a 5–6% assumption with 3% inflation is prudent. Fees of 1–2% a year on savings plans can cut the final pot by a third.
Are expat savings taxed in the UAE?
No tax applies in the UAE on investment income or gains, but your home country may tax you on return, and US citizens are taxed worldwide regardless of residence.
What is the DEWS scheme?
The DIFC Employee Workplace Savings plan replaces gratuity for DIFC employers with monthly funded contributions (5.83% / 8.33% of basic) invested on the employee's behalf — a portable, protected alternative that other free zones are adopting.
Should I keep paying into my home-country pension?
Often yes: UK voluntary NI costs little and buys state pension years; India's NPS and many countries' schemes accept non-resident contributions. Check tax treatment on return.
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