A large majority of UAE residents are thinking about retirement, yet very few rely on formal pension plans to secure their future. According to BlackRock’s latest Read on Retirement: GCC 2026 report, only 24% of UAE workers contribute to a pension or long-term savings plan, even though 75% say they have started preparing for retirement.
- UAE Nationals Show Higher Retirement Confidence Than Expats
- Personal Savings Remain the Primary Retirement Strategy
- Financial Literacy Remains a Major Challenge
- Workers Worry About Long-Term Financial Security
- Workplace Savings Schemes Could Support Economic Growth
- Strong Demand Emerges for Employer-Sponsored Retirement Plans
- UAE Has Opportunity to Expand Retirement Security
The findings highlight a growing disconnect between retirement awareness and structured financial planning. At the same time, they point to a significant opportunity for the UAE to strengthen retirement readiness while boosting long-term economic growth through higher domestic investment.
UAE Nationals Show Higher Retirement Confidence Than Expats
The study reveals a clear difference between UAE nationals and expatriates when it comes to retirement preparedness.
Around 67% of UAE nationals say they feel prepared for retirement. In contrast, only 46% of expatriates express the same level of confidence. Most expatriates continue to depend on employer benefits and personal savings rather than dedicated retirement schemes.
BlackRock notes that the UAE’s retirement framework remains fragmented. Nationals benefit from public pension systems, while expatriates typically receive end-of-service benefits. Meanwhile, workplace savings plans remain limited across much of the private sector.
Personal Savings Remain the Primary Retirement Strategy
As a result, many workers expect to fund retirement largely on their own. Nearly half of respondents said personal savings and investments would serve as their main source of retirement income.
In comparison, only 6% believe workplace pension schemes will play a major role in supporting their retirement years.
According to Kashif Riaz, Head of Middle East Financial Advisory at BlackRock, the issue is not a lack of willingness to save.
“The UAE workforce is engaged, motivated and already taking steps to prepare for the future. What we see in the data is a clear retirement knowledge gap, not an intention gap,” Riaz said.
Financial Literacy Remains a Major Challenge
The report also highlights low levels of retirement-related financial knowledge.
Only 13% of expatriates and 21% of UAE nationals feel confident about understanding retirement planning options. Furthermore, more than one-third of respondents do not know where to find reliable financial advice.
In addition, 32% remain unsure about how much money they should save for retirement. This uncertainty continues to slow long-term financial planning despite growing awareness of future needs.
Workers Worry About Long-Term Financial Security
Although current financial confidence remains relatively high, concerns about the future continue to grow.
Around 78% of respondents reported feeling positive about their present financial wellbeing. However, 59% said financial worries prevent them from planning ahead effectively.
Moreover, 58% fear they may outlive their retirement savings. These concerns underline the need for stronger retirement planning tools and better financial education.
Workplace Savings Schemes Could Support Economic Growth
The report argues that retirement reform could benefit both workers and the broader economy.
Currently, household savings remain concentrated in cash, gold and property. About 49% of respondents hold savings in cash, while 40% invest in gold and 18% in property.
Consequently, relatively little capital flows into long-term productive investments. BlackRock believes that expanding funded workplace savings schemes could channel more domestic capital into UAE financial markets. Such a shift could support economic diversification and long-term growth objectives.
Strong Demand Emerges for Employer-Sponsored Retirement Plans
Interest in workplace retirement solutions appears remarkably high.
More than 90% of both UAE nationals and expatriates said defined-contribution workplace savings schemes are attractive. Similarly, a comparable share indicated they would participate if employers offered such plans.
The report points to ongoing reforms, including workplace savings initiatives introduced by the Dubai International Financial Centre, as important steps toward building a stronger retirement ecosystem.
UAE Has Opportunity to Expand Retirement Security
Looking ahead, retirement savings momentum appears to be building. The study found that 56% of respondents plan to increase their retirement contributions in the coming years.
BlackRock believes the UAE is well positioned to strengthen financial security for its workforce. At the same time, broader participation in retirement savings programs could create larger pools of domestic capital that support future economic expansion and investment.
