The General Pension and Social Security Authority (GPSSA) said that Emiratis retiring after 20 years is not sufficient period for them to obtain a beneficial insurance scheme.

The General Pension and Social Security Authority (GPSSA) said that Emiratis retiring after 20 years is not sufficient period for them to obtain a beneficial insurance scheme.

“The response in short is simple; the less time spent working, the more an insured individual is prone to losing various insurance benefits, such as not receiving their aspired retirement pension,” state news agency WAM reported. 

The GPSSA added that a retirement pension is granted to government sector employees based on the average contribution from monthly salary for the last three years of service, while in the private sector it is calculated for the last five years of service or on the entire contribution period, if that period is less than five years. 

However, they added that if an insured individual  spends 20 years in service, they can receive a pension at the rate of 70 percent of the average contribution from monthly salary.

“As part of the ‘Get Ready – Proactive Financial Planning’ campaign launched by the GPSSA until 30th July 2023 to highlight the importance of preparing oneself in advance of a retirement, the GPSSA explains the fact that an insured’s decision to continue working beyond a period of 20 years results in “an increase in pension by two percent for each additional year spent working” – which is an added value for both the insured and his/her family members,” reported WAM.

In addition, continuing to work beyond those years results in saving the purchase cost, especially with the possibility of an increase in the insured’s salary.

GPSSA said that working for a period of 25 years in the government sector grants an insured individual the right to combine their pension and salary once they return back to work or take on a new job. 

“Insured females may obtain the maximum retirement pension at 100 percent of the average contribution account salary if they decide to retire after 25 years of employment, enjoying a legal purchase period of ten years, while males are required to work for a minimum period of 30 years in order to receive their maximum pension entitlements, with a five-year nominal service purchase period,” explained the news agency. 

Those who work for 35 years and beyond, receive a maximum pension rate at 100 percent of the average contribution account salary.