A new ‘Golden Pension Scheme’ announced on Tuesday will help UAE residents get a headstart in retirement planning. Sharia-compliant savings and investment company National Bonds said the scheme targets “89 per cent of the UAE’s population that are expats.”

Under the scheme, employees have the flexibility to contribute as little as Dh100 on a monthly basis and earn a profit on the amount saved. This can be availed in addition to the gratuity provided by their organisation.

It was developed in line with “increasing demand” from employers and employees. “The unique initiative aims to help corporates registered with National Bonds support their employees’ financial goals. (It) will help employees of registered corporates strengthen their financial resilience through the attractive competitive returns being offered under this programme,” National Bonds, which is owned by the Investment Corporation of Dubai, said in a statement.

The scheme aims to support organisations with their employee retention efforts as well as help them plan ahead for the end-of-service financials.

Through the National Bonds’ app, employees can check their pension portfolio and view their savings in real-time. Moreover, they can also be part of the rewards programme of Dh35 million.

National Bonds Group CEO Mohammed Qasim Al Ali said: “Retirement planning is extremely important to ensure people stay financially stable and independent. Today, the UAE is home to over 8 million expats. With this first-of-its-kind initiative designed especially for the private sector, we want to enable expats to invest in their future while supporting corporates with their employee retention strategy.

"In line with the vision of the leadership to make the UAE the preferred country of employment, the scheme enables companies to invest in their employees’ end-of-service funds so they can benefit from additional returns on their gratuity. Not many companies do this as accumulated funds are not being invested, which ultimately deprives the employees of these benefits.”

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