Here’s some Covid-free news for you!
Dubai has launched a retirement programme for resident expatriates and foreigners over the age of 55. This means that eligible applicants will be provided a retirement visa, renewable every five years.
So who are these “eligible applicants”?
There are 3 financial requirements for eligibility and retiree can choose any one of them:
Earning a monthly income of AED20,000 ($5,500); having savings of AED1 million ($275,000); or owning a property in Dubai worth AED2m ($550,000).
In its initial phase, the programme will focus on UAE residents working in Dubai who have reached retirement age.
Why this move?
The program “will contribute towards Dubai’s tourism economy by facilitating frequent visits from families and friends of the retirees and increasing visitation from markets with a high retiree population.
Also, the individual who qualifies will by default have a lot of money that can be spent within the UAE, rather than being repatriated to their home countries.
Side note: in the UK retirees are responsible for 50% of consumer spending
Now the third criteria for getting the new visa is ownership of property. According to Samer Abdi from Dubizzle, the move will encourage people to switch from renting to owning property.
Retaining high salaried expats – which will result in more expenditure on schools, healthcare, leisure.
Is the job done?
Dubai must follow up its retirement visa program with initiatives to build savings among the expat population, according to a leading analyst.
A survey done earlier last year showed that 45% of UAE expat employees either have no plans for financial security post-retirement or plan to work beyond the retirement age to ensure continued income while as many as 61 percent of respondents reported having no long-term savings.
In addition, 99 percent of UAE employees expressed the need for improved savings and investment benefits, while 81 percent claimed they would be less likely to leave their current employer if they were offered such benefits.
Another thing that could come out this move is long term demographical implications, considering the majority of the expatriate population in Dubai are aged between 25 and 39
The UAE government has been very proactive in recent times and has already taken several steps at the federal and local level to reform the labour and pension system, including changes to the mandatory end of service benefits.
Click on the cards on the screen to know more about these new rules and changes if you aren’t aware of them already.
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