Navigating Retirement Planning as a British Expat in the UAE: Challenges and Opportunities

The introduction of pension freedoms in the UK was a ground-breaking moment that changed how Brits approach long-term saving, especially alongside auto-enrolment. However, for British expats in the UAE, retirement planning is met with negative attitudes due to stories of mis-selling and scandals.

Retirement planning as an expat in the UAE poses unique challenges, as clients tend to earn more due to low levels of tax but struggle to adopt a long-term mindset. The advice sector should be encouraging clients to prioritize discussions about pensions before moving abroad.

Expats in the UAE often face pension issues related to fund selection and asset allocation. Many expats leave the UK with multiple small pension pots, making it crucial to consolidate and seek advice before moving. Accessibility to pension funds in the UAE can lead to short-term thinking and hinder long-term planning efforts.

Building retirement pots as an expat in the UAE can involve utilizing workplace schemes like DEWS and making voluntary contributions to the UK state pension. Despite a deep mistrust of pensions due to scandals, the landscape of retirement planning for expats in the UAE is evolving.

The UAE government’s introduction of retirement visas and the potential for employers to offer pension consultancy sessions signal a shift towards better retirement planning opportunities for expats. While accumulation pots and funds in the UAE may be more expensive and limited in choice compared to the UK, prioritizing retirement planning is essential for UK expats in the UAE.

Existing UK pensions can serve as a valuable wealth transfer tool for expats, offering inheritance tax benefits and simplifying the process of passing on wealth. Stuart Ritchie, managing partner and financial adviser at GSB Wealth, emphasizes the importance of seeking advice and planning for retirement as an expat in the UAE.