The UAE savings program provider, National Bonds, has introduced a pension plan aimed largely at private-sector foreign workers. For the ‘Golden Pension Scheme,’ employees can put away as little as Dh100 every month.
In addition to employer-provided gratuity, they can withdraw their own personal savings. According to National Bonds, “the program intends to support companies with their staff retention initiatives and help them prepare ahead for the end-of-service financials.”
The funds will be managed in collaboration with National Bonds and the companies contributing to them.
UAE: ‘Golden Pension’ Announced For Expats To Help Boost Gratuity
Greater attention is being paid to pension plans. This year, DIFC (Dubai International Financial Centre) launched a plan under which workers of all nationalities employed by agencies of the Government of Dubai can make pension contributions. There is a possibility that pension plans would expand and eventually replace the decades-old gratuity programs managed by UAE companies.
Employees of registered corporates may get a head start on retirement planning and increase their financial resilience through the favorable competitive returns offered by the National Bonds” scheme, which is geared at 89% of the UAE’s foreign population.
Employers may see how their workers’ pension fund is doing with National Bonds’ mobile app. National Bonds offer a return of Dh35 million in addition to takaful coverage for life.
According to Mohammed Qasim Al Ali, CEO of National Bonds, “today, the UAE is home to nearly 8 million foreigners.” “With this first-of-its-kind effort tailored specifically for the commercial sector, we hope to help expats save for the future while also assisting corporations with their strategy for retaining valuable employees.”
As a result of the system, businesses can put money aside for their workers’ gratuities, increasing the amount they get at the conclusion of their employment. Few businesses really invest their employees’ collected savings, which means workers miss out on rewards.
Instructions For The Golden Retirement Plan Backed By National Bonds
- For businesses participating in the Golden Pension Scheme, National Bonds will handle all aspects of fund management directly. There are already 8,000 people working for the firm, but that figure is expected to skyrocket in the coming months as a result of demand from large corporations. A number of collaborations are now in the planning stages, with announcements expected in the coming months.
- Each business is free to choose its own contract term. They can commit for as little as one year, up to whatever length of time the hiring company sees fit.
- A “sophisticated investment policy” will outline the specific uses for the proceeds from the sale of National Bonds. This plan favors investments that provide income, such as debt instruments.
- The new program will facilitate the administration of employee pension plans and the beginning of retirement savings for corporations.
- Golden Pension Scheme provides workers with an easy-to-use digital platform, cutting-edge savings tools, and flexible investment options to help them save more money.
- With expats making up 89% of the UAE’s population, this product is aimed squarely at them. Monthly contributions might be as little as Dh100 if desired by the employee.
- Consistent with rising interest from both companies and workers, the pension plan is always evolving.
- The program’s goals are to strengthen company-employee ties by encouraging long-term employment and easing the burden of retirement planning.