How Much Should I Save for Retirement?
Project your pension-plan, unit trust and other retirement saving — your own long-term saving on top of any end-of-service gratuity — based on your age, monthly contribution and expected return, in dirhams. Free, no sign-up.
Your Details
Your end-of-service gratuity is paid whenever you leave a job — see the end-of-service gratuity calculator.
Include your own contribution to an approved pension or retirement scheme, your employer's, and any separate investing in unit trusts or shares.
After fees and tax, and ideally after inflation. UAE inflation has often run mid-single-digits, so a real return well below the nominal figure is realistic.
At Retirement — Age 60
Projected Savings
AED 3,456,534
25 years · 7% per year
💬 In Plain Words
If contributions keep going at AED 2,500/mo from now (age 35) until you are 60, you could have about AED 3,456,534 by the time you retire — this is on top of any end-of-service gratuity. Of that, AED 1,000,000 is contributions and the rest, AED 2,456,534, is return the money generated on its own. Under the "4% rule" that could support about AED 11,522/mo, before your gratuity pension.
| Age | Balance |
|---|---|
| 40 | AED 533,389 |
| 45 | AED 935,127 |
| 50 | AED 1,504,642 |
| 55 | AED 2,312,001 |
| 60 | AED 3,456,534 |
This projection estimates only your own retirement saving — it does not include your end-of-service gratuity, which is a one-off lump sum paid by your employer when you leave, based on your years of service. Assumes a constant nominal return. Check your pension-scheme projection with your provider and talk to a licensed financial adviser before deciding.
How the Calculator Works
👋 Simple Explanation
In the UAE your end-of-service gratuity (see the gratuity calculator) is a lump sum on leaving a job — 21 days' basic pay per year for the first five years, 30 days per year after — not a monthly income. There is no state pension for expatriates, so you have to build the whole thing yourself through low-cost funds, shares, property or a workplace savings scheme. This calculator estimates that self-funded layer only, not the end-of-service gratuity.
The calculator combines two formulas: the future value of your current balance (growing at the expected return) and the future value of your ongoing monthly contribution.
FV = P × (1+r)ⁿ + PMT × [(1+r)ⁿ − 1] / r
Where P = current balance, r = monthly return (annual ÷ 12), n = months to retirement, and PMT = the total monthly contribution. The estimated monthly income uses the 4% withdrawal guideline: annual income = 4% × final balance.
How to Strengthen Your Retirement Saving in the UAE
Use the tax break on approved schemes. Contributions to an approved superannuation scheme or an approved retirement scheme (ARS) are tax-deductible up to a limit — that is an immediate return through lower PAYE. If your employer offers a matched pension, contribute at least enough to get the full match.
Watch fees and beat inflation. Compare the management fee between unit trusts and pension funds — a percentage point a year compounds heavily over decades. Aim for a mix that has a real chance of beating UAE inflation over the long term, not just a savings account.
Start as early as possible. Time is the most powerful variable. Starting small in your twenties beats starting large in your forties, because the early contributions compound the longest.
Frequently Asked Questions
- How much should I save for retirement in the UAE?
- There is no single figure — it depends on how much you spend and how many years you expect to live off your savings. A common rule of thumb (the '4% rule') suggests capital of about 25 times your annual spending can support withdrawals for around 30 years. There is no state pension for expatriates in the UAE — your end-of-service gratuity is a one-off lump sum on leaving a job, not a monthly income — so essentially all of your retirement income has to come from your own saving and investing. This calculator estimates that.
- Does this calculator include my end-of-service gratuity?
- No. Your end-of-service gratuity is a lump sum your employer pays when you leave — see the gratuity calculator. This tool projects your own long-term investing: index funds, property, a personal pension or a workplace savings scheme. Add your projected gratuity to this for your total retirement pot.
- What can I use to save for retirement in the UAE?
- An approved superannuation scheme or an approved retirement scheme (ARS) through your employer or a financial institution — contributions up to a limit are tax-deductible. Beyond that, unit trusts, mutual funds and the Dubai Financial Market are common. Property is also widely used. Fees, discipline and time in the market matter more than picking the perfect product.