Retirement Calculator — UAE
Find the monthly investment needed to build a retirement pot in the UAE, where there's no state pension for expats — with gratuity, GPSSA and DEWS rules built into the guide below. Free, no signup.
How much do you need to retire in the UAE?
The UAE has no state pension for foreign residents, so expats' retirement income is largely whatever they build themselves — investments plus, for private-sector employees, a one-off end-of-service gratuity when they leave a job. UAE nationals are covered separately by the mandatory GPSSA pension scheme. Because there's no government pension safety net for expats, the calculator's ~25×-expenses target (from the 4% rule, below) is doing more work here than in a country with a state pension layered underneath it.
No state pension for expats — plan to leave with a portable pot
Foreign residents in the UAE are not covered by any UAE government pension, and most expats eventually relocate again — for retirement or otherwise. That makes a globally portable retirement plan (an international brokerage account or SIPP-style wrapper, rather than a UAE-only product) more important here than in a country you plan to retire in. Build your target corpus assuming you may need to draw it down from another country, in another currency, under different tax rules.
End-of-service gratuity: the formula
Private-sector employees who complete at least one year of continuous service are generally entitled to an end-of-service gratuity under UAE Labour Law, calculated on basic salary (excluding housing, transport and other allowances): 21 days' basic wage for each of the first 5 years of service, and 30 days' basic wage for each year beyond 5 years, pro-rated for partial years, with a lifetime cap of two years' wage (Middle East Briefing, accessed 24 September 2026; eligibility and provisions confirmed on u.ae, accessed 24 September 2026). Gratuity is a one-off lump sum, not an ongoing pension — for example, a worker leaving after 8 years on a AED 10,000 basic salary would have their gratuity calculated on 5×21 days plus 3×30 days of that basic wage. It should be treated as a bonus toward your retirement pot, not relied on as the pot itself.
GPSSA: the mandatory pension for UAE nationals
UAE nationals working in the government or private sector are covered by a mandatory pension under the General Pension and Social Security Authority (GPSSA). The employee contributes 5% of the contribution salary; in the private sector the employer contributes 12.5% and the federal government adds a further 2.5%, for a total contribution of 20% of salary (in the government sector the employer share is 15%, with no separate government top-up) (GPSSA, accessed 24 September 2026). This scheme does not apply to expatriate employees.
DEWS and the voluntary savings scheme (alternatives to gratuity)
Employees in the Dubai International Financial Centre (DIFC) are covered by DEWS (DIFC Employee Workplace Savings), a mandatory, professionally invested defined-contribution scheme that replaced the traditional end-of-service gratuity for DIFC employers — contributions build up throughout employment instead of being paid as a single lump sum at exit (DIFC, accessed 24 September 2026). Outside the DIFC, the UAE Ministry of Human Resources and Emiratisation (MOHRE) also runs a voluntary alternative end-of-service savings scheme: participating employers invest gratuity contributions into MOHRE-approved funds (currently including FAB, Lunate and National Bonds Sukuk options) instead of accruing a lump sum, and eligible participants include private-sector employees, freelance/self-employed permit holders and some public-sector staff (verify current fund options and eligibility on MOHRE or u.ae before enrolling).
The 4% rule (a rule of thumb, not a guarantee)
- The "4% rule" is a rule of thumb popularised by US retirement research, not a UAE regulatory standard: it suggests withdrawing about 4% of your investment portfolio in the first year of retirement, then adjusting that amount for inflation, has historically lasted around 30 years. It implies a target corpus of roughly 25× your annual expenses.
- With no UAE state pension for expats to lean on, this target corpus is effectively your whole retirement income (plus any gratuity, GPSSA pension for nationals, or DEWS/savings-scheme balance) — treat it as a planning starting point, not a promise.
- Starting earlier dramatically lowers the monthly amount needed, thanks to compounding. The calculator above estimates the monthly investment needed to reach your target.
Frequently Asked Questions
Is there a state pension for expats in the UAE?
No. The UAE has no state pension for foreign residents. Retirement income for expats comes from personal investments, any end-of-service gratuity, and (for DIFC employees) the DEWS scheme. UAE nationals are covered separately by the mandatory GPSSA pension.
How is end-of-service gratuity calculated?
For private-sector employees with at least one year of service: 21 days' basic wage per year for the first 5 years, and 30 days' basic wage per year after that, pro-rated for part years, capped at two years' total wage. It's based on basic salary only, not allowances or bonuses.
What pension do UAE nationals get?
UAE nationals are covered by the mandatory GPSSA pension: the employee contributes 5% of salary, with employers and (in the private sector) the federal government contributing the rest, for a combined 20% contribution rate.
What is DEWS, and does it replace gratuity?
DEWS (DIFC Employee Workplace Savings) is a mandatory, professionally invested savings scheme that replaced lump-sum gratuity for DIFC-registered employers. Outside the DIFC, MOHRE also runs a voluntary alternative savings scheme employers can opt into instead of the standard gratuity.
Sources
- u.ae — End-of-service benefits for employees in the private sector (accessed 24 September 2026)
- Middle East Briefing — UAE End-of-Service Gratuity: How to Calculate It (accessed 24 September 2026)
- GPSSA — Distribution of pension contributions due from insured individuals (accessed 24 September 2026)
- DIFC — Qualifying Schemes (DEWS) (accessed 24 September 2026)
- Gulf News — UAE's voluntary end-of-service savings scheme, explained (accessed 24 September 2026)