Only 6% of UAE workers expect workplace pension schemes to fund their retirement

Only 24% of UAE workers contribute to a pension or long-term savings plan despite 75% saying they have started preparing for retirement, highlighting a significant gap between saving intentions and structured retirement planning, according to a new report by BlackRock. 

The findings, published in the Read on Retirement: GCC 2026 study, suggest the UAE has a major opportunity to strengthen retirement preparedness while unlocking long-term economic growth through greater domestic investment.

The findings reveal a sharp contrast between UAE nationals and expatriates. While 67% of nationals feel prepared for retirement, confidence falls to 46% among expatriates, who largely depend on employer benefits and personal savings rather than formal retirement schemes.

The report notes that the UAE’s retirement landscape remains fragmented, combining public pension systems for nationals, end-of-service benefits for expatriates, and a limited range of workplace savings plans. As a result, half of respondents expect to rely primarily on personal savings and investments in retirement, while only 6% anticipate workplace pension schemes as a key source of retirement income.

Kashif Riaz, Head of Middle East Financial Advisory at BlackRock, said the challenge is not a lack of willingness to save but a lack of access to structured retirement solutions and financial guidance.

“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.

The study found that financial literacy remains a significant hurdle. Only 13% of expatriates and 21% of nationals feel confident about understanding retirement options. 

More than a third of respondents said they do not know where to obtain reliable financial advice, while 32% are unsure how much they should be saving for retirement.

Despite strong financial confidence today, 78% of workers reported feeling positive about their current financial wellbeing, many remain concerned about the future. Nearly 59% said financial worries prevent them from planning ahead, and 58% fear outliving their savings.

The report also points to a broader economic opportunity. Household savings remain heavily concentrated in cash (49%), gold (40%), and property (18%), limiting the flow of capital into productive long-term investments. BlackRock argues that expanding funded workplace savings schemes could channel more domestic capital into UAE capital markets, supporting economic diversification and long-term growth.

Demand for workplace retirement solutions appears strong. More than 90% of both UAE nationals and expatriates said they find defined-contribution workplace savings schemes appealing, and a similar proportion indicated they would participate if such programs were made available.

The report suggests that ongoing reforms, including workplace savings initiatives introduced by the Dubai International Financial Centre, provide a foundation for broader retirement system development. 

With 56% of respondents planning to increase retirement savings, BlackRock believes the UAE has a unique opportunity to strengthen financial security for workers while creating larger pools of domestic capital to support future economic expansion.