Pensions in Dubai – a guide for those buying property in Dubai
For those intending on retiring to Dubai the situation with regards to pensions in Dubai is something that must be checked out. A system of social security does not exist in Dubai in the way it does in other countries. Even if you are some distance from retirement age, you should find out what this means to you if you are buying property in Dubai.
No state pensions in Dubai
A system of state pensions in Dubai simply does not exist for foreign nationals. Although some firms and institutions offer schemes for private pensions in Dubai, companies are not obliged to provide them. You should continue to pay towards any state pension schemes you contributed to in your home country.
This illustrates the importance of using your high salary and the absence of income tax in Dubai wisely. With no state requirement to save for retirement it is up to you to plan private pensions in Dubai.
Professional financial advisors can help you plan for retirement and make the most of your property in Dubai.
Buying property in Dubai but worried about UK pensions?
You can still collect UK state pensions in Dubai and should contact your local social security office to complete the correct forms. You should also write to the Pensions Service to tell them you are moving abroad and give them your new address.
Personal and company pension schemes can usually be paid anywhere and it may be a good idea to transfer your pension fund abroad. This would eliminate any exchange rate risk although all such international transfers must be approved by the Inland Revenue.
If you are planning on buying property in Dubai then you plan appropriately for later life. There is no system of state pensions in Dubai so it is up to yourself to make alternative arrangements.
