Comprehensive guide to pension planning
for expats in the UAE

You need your own pension to fund your lifestyle after you stop working.

As an expat, you cannot rely on the state to provide for you in retirement. Even if you lived in the UK and had made full National Insurance contributions all your working life, the state pension today for the 2024/25 tax year is £221.20 per week – it’s unlikely to ever rise in real terms. 

Compare this amount to your salary now, and the income you hope to live on when you retire, does it come close? 

Probably unlikely.

So, this is why you need your own pension.  And the good news is, as an expat you have a number of options to consider when it comes to saving for retirement.

In the UK, a personal pension policy is an HMRC approved contract set up to save specifically for retirement.  

It may attract tax benefits, depending on your residency and earnings status, and cannot usually be accessed before the age of 55 because pension solutions are designed to provide an income, and potentially a lump sum, in retirement.

Employers sometimes provide pension savings schemes for employees. In the UK workplace pensions are now mandatory for example.

However, even if your employer does provide a workplace pension scheme, you may need to make additional savings to ensure you can enjoy the lifestyle you require in retirement.

Yes, it may be possible, depending on the type of pension scheme you have.

However, there are lots of things to consider, mainly the benefits your current scheme offers versus the potential advantages of transferring.  

This can be a complex decision to make, and one you must take advice on.  The advice you take must be from an individual who is a qualified pension transfer specialist, and in turn, they must work for an organisation that’s regulated to offer pension transfer advice.

The advantages of a pension transfer are often heavily over-sold by unqualified advisers who may stand to profit substantially from a transfer via commissions and hidden fees.

Tread with caution; the value of your pension must be preserved so your future retirement plans are not scuppered.

There are now strict limits to the maximum pension contribution you can make in the UK that can attract tax relief.

However, if you start an appropriate pensions savings scheme whilst living outside the UK as an expat, there is no limit to the contributions you can make.

You can request an illustration from us showing the effect of increasing, reducing or stopping your pension payments to see how this might affect your income in retirement.

The full value of your pension plan will normally be used to provide a cash lump sum for your dependants or beneficiaries, although it can be used to provide an income for one or more dependants or beneficiaries using an income drawdown plan.

If you are under 55, it’s unlikely that you will be able to cash in your pension pot because pensions are a specific type of savings scheme designed to provide you with an income in retirement.

Once you reach the age of retirement and want to access your pension, you have many options depending on the scheme.  You may be able to take a lump sum, you can certainly take an income. 

It’s critical you take advice about how to access your investments in retirement so that you’re tax efficient, and your entire portfolio provides you with sufficient income for the rest of your life.

Even if you’ve never spoken to a financial adviser before, when it comes to retirement income planning, you’re likely to derive great value from speaking to a chartered financial adviser.

Please talk to us to find out more about your options for accessing and utilising your pension savings.

The UAE does not offer a government-backed pension for expats, but employer-led schemes like the DIFC Employee Workplace Savings (DEWS) Plan are becoming more common. Expats can also set up private or offshore pension plans.

The best scheme depends on your financial goals. Some expats keep their UK pensions, while others transfer to QROPS or choose offshore pension plans for greater flexibility and tax efficiency.

A good pension plan offers long-term growth, tax benefits, and flexible withdrawal options. Offshore pension schemes and international pension plans are popular with expats.

The best plan depends on your retirement goals, location, and tax situation. Defined contribution pensions, QROPS, and offshore schemes are common choices for expats.

In the UK, most defined contribution pensions allow a 25% tax-free lump sum withdrawal from the age of 55. However, tax rules may vary depending on where you live.

Yes, you can still contribute to a UK pension while living abroad, but tax relief may be limited depending on your residency status. Offshore pensions may be a better alternative.

While not legally required, getting financial advice ensures you make the most tax-efficient decisions, especially if you're considering transferring or withdrawing your pension.

Countries like Denmark, the Netherlands and Switzerland offer some of the highest state pensions, based on earnings and contribution history.

Expats in the UAE do not have a state pension but can invest in offshore pension plans or employer-provided schemes like DEWS. Many also rely on personal investments for retirement.

Yes, many expats transfer their UK pensions to a QROPS or an international pension scheme, but tax implications and transfer fees should be carefully considered.

Most UK benefits continue for short stays abroad, but after six months, residency rules may affect eligibility. The impact varies by benefit type.

Yes, once eligible to withdraw, you can transfer your pension funds to a bank account. Be aware of potential tax charges depending on your residency.

A common guideline suggests saving at least one year’s salary by 30, increasing over time to ensure a comfortable retirement.

Yes, if tax relief is available. A lump sum can significantly boost retirement savings, especially if invested early, but always consider annual allowance limits and tax rules.