UAE Residents Reassessing Retirement Plans: Experts Identify Emerging Trends

The United Arab Emirates (UAE) is witnessing a significant shift in its retirement landscape, as more expatriates view the country as a long-term home and retirees reshape its social landscape.

In the realm of real estate, retirement visa initiatives have fuelled an interest in long-term residence, particularly among those who previously considered the UAE as a temporary destination. However, the availability of purpose-built senior living communities is limited, with seniors relying on regular residential properties combined with on-demand healthcare services. Prime locations like waterfront and elite urban neighborhoods are favored for retirement housing, offering upscale amenities and bespoke services that support independence while maintaining connectivity.

Affordability challenges persist, prompting many retirees to consider internal relocation from expensive cities like Dubai to more affordable emirates such as Sharjah or Ajman. This shift from global to internal migration for retirement purposes reflects the growing importance of affordability in retirement planning. Property ownership, valued both for financial security and residential permanency, remains a key retirement asset, yet rising real estate prices complicate accessibility for many.

Financial planning is another crucial aspect of retirement in the UAE. Traditional reliance on end-of-service benefits (EOSB) or gratuity is no longer seen as sufficient for long-term retirement security. Most expatriates lack formal, adequate retirement planning beyond this. Emerging governmental frameworks like workplace savings schemes and alternative EOSB systems signal a commitment towards improving financial resilience for retirees. The rise of "micro-retirement," where professionals take phased breaks or slower career paths before full retirement, reflects changing attitudes towards work-life balance but also highlights challenges in financial preparedness for these transitions.

Healthcare concerns become more prominent in retirement planning with increasing life expectancy and an aging population. Seniors seek integrated services including physical training, dietitians, mental health support, and on-demand healthcare embedded within or near their living environments. The absence of fully integrated senior living facilities in the UAE means healthcare provisions currently rely heavily on supplemental services alongside conventional housing.

Dr Rahul Unnikrishnan, a geriatric medicine specialist, has suggested the introduction of a health card system for long-term residents in the UAE, costing around Dh10,000 to Dh15,000 annually and providing access to public hospital care. This proposal aims to address the high cost of health insurance, a key concern for retirees in the UAE.

The continued ability of the UAE to meet the needs of its aging residents will be crucial in making it an attractive retirement destination. The popularity of off-plan properties among retirees, with their flexible payment plans being a key factor, further underscores this need. As the UAE evolves to cater to the needs of its aging population, it may soon become one of the most attractive retirement destinations in the world, offering a unique blend of sunshine, safety, modern amenities, and cultural diversity.

Dr İdil Akıncı, a social policy lecturer and researcher, has been studying family dynamics in the UAE since 2013. Her research has shown that retirees in the UAE are adapting through financial planning through internal relocation and transnational retirement. This adaptability is a testament to the resilience and resourcefulness of retirees in the UAE, ensuring they can enjoy their golden years in this vibrant and dynamic country.

Real estate agent Shabna Ibrahim has noted the growing interest from senior buyers in the UAE's property market, further underscoring the trend of retirees choosing to spend their golden years in the UAE. Wail Abualhamail, Director of Real Estate at ASICO, has confirmed that property ownership among retirees is on the rise in the UAE. The evolving idea of retirement in the UAE includes community-oriented living, smarter financial planning, and calls for better healthcare solutions, making it an exciting time for retirees in the country.

Seniors in the UAE are increasingly relying on regular residential properties combined with on-demand healthcare services due to the limited availability of purpose-built senior living communities.
Affordability challenges are compelling many retirees to consider internal relocation from expensive cities like Dubai to more affordable emirates such as Sharjah or Ajman, reflecting the growing importance of affordability in retirement planning.
In the future, a health card system could be introduced for long-term residents in the UAE, offering access to public hospital care at a cost of around Dh10,000 to Dh15,000 annually, addressing the high cost of health insurance, a key concern for retirees.
The rise of "micro-retirement" reflects changing attitudes towards work-life balance but also highlights challenges in financial preparedness for these transitions, making financial planning a crucial aspect of retirement in the UAE.
The continued focus on real estate, health, and financial matters will contribute to the UAE's transformation into one of the most attractive retirement destinations worldwide, offering a unique blend of health-and-wellness, lifestyle, business, safety, and cultural diversity.