For decades, retirement planning was a conversation that began elsewhere. In the UAE, a globally mobile population meant many expatriates viewed their time here as a chapter, not a destination. The end-of-service benefit was a buffer, not a strategy. But this narrative is shifting – and rapidly.
Today, more expatriates are choosing to put down roots in the UAE. As life expectancy increases, many professionals are building longer, more permanent careers in the Gulf.
Meanwhile, policymakers and businesses alike are reimagining how to support residents who wish to retire in the country they now call home.
The traditional gratuity-based EOSB, while important, was never designed to provide long-term financial security. A basic EOSB – capped at two years' basic salary – falls far short of the 12-times annual salary rule-of-thumb required for a secure retirement.
And yet, for most expatriates, it remains the only formal structure supporting their post-career lives, without pursuing other financial alternatives.
The Mercer Marsh Benefits 2025 Health on Demand report reveals that more than half (53 per cent) of employees in the UAE are extremely or very concerned about their financial ability to retire. At the same time, 81 per cent said they would be happy if their employer helped them start planning for health and care needs in retirement. The desire is clear. So is the gap.
Encouragingly, governments across the region are taking notice. In the UAE, frameworks such as the Dubai International Financial Centre’s Employee Workplace Savings scheme and the Ministry of Human Resources and Emiratisation’s alternative EOSB system reflect a growing commitment to financial resilience and retirement adequacy.
These schemes introduce elements of portability, transparency and long-term planning that the current EOSB system lacks.
But policy alone cannot shift outcomes. Businesses must also adapt − starting with how they design and deliver employee benefits.
Flexible contribution schemes
Retirement provision is emerging as a key opportunity for both employers and employees – and also a strategic lever to differentiate and retain talent.
In the face of cost-of-living pressures, financial stress is becoming a more common side effect of everyday life – and stress has business consequences. Productivity, engagement and retention can be impacted when employees are financially insecure. So, what can employers do?
A starting point is to broaden the conversation around retirement beyond EOSB. Flexible contribution schemes – such as defined contribution plans – can align benefits with modern career trajectories. These allow for both employer and employee contributions, potentially including voluntary top-ups, and provide more transparency and control for workers.
Removing the open-ended EOSB liability going forward would also de-risk unfunded obligations and improve cash outflow management for businesses.
Equally important is education. Financial literacy programmes, savings tools and retirement planning resources empower employees to make informed choices. This is especially critical for younger professionals, who are increasingly evaluating employers based on their ability to support long-term well-being – not just salaries.
About 81 per cent of employees in the Middle East would be less likely to leave their employer if retirement support was part of their benefits package, according to the Mercer Global Talent Trends 2025 report. And 43 per cent said it would increase their sense of commitment to the organisation.
Time for a regional model
The Gulf, with its long-term outlook to policy and societal development, is well-placed to lead in the retirement space. Governments are investing in future-ready infrastructure and diversifying economies at speed.
As more professionals stay longer, the region has an opportunity to model a new approach to expatriate retirement – one that combines the dynamism of the private sector with the stability of long-term savings.
By building tailored models that reflect this changing demographic, organisations can offer much more than just employment. They can offer security.
As chief executives and business leaders, we have an opportunity to support our greatest assets. By investing in smart, flexible and future-focused benefits, we can support our people more meaningfully, compete for top talent globally and strengthen the economic fabric of the UAE for generations to come.
Renee McGowan is chief executive of Marsh McLennan India, Middle East and Africa
