The choice to retire should not be based on a personal decision or preference
Abu Dhabi, 15 May 2023 – Insured individuals who decide to retire early must make sure they have planned for their insurance benefits properly as per the UAE Pension Law, and consider present and futuristic repercussions caused as a result of taking that decision for their entire family.
The General Pension and Social Security Authority (GPSSA) highlighted the fact that present and futuristic expectations of an entire family must be weighed out properly prior to a father or a mother deciding to retire, since they are considered the family’s pillar and financial provider.
Many Emiratis take a decision to retire early without studying their situation properly, and discover later that their choice was incorrect and start searching for solutions such as the possibility to amend the law or be granted an exceptional pension without the need to fulfil the qualifying conditions which is not possible.
When laws are initially drafted the balance between personal and social requirements are considered, which entails a person’s adaptability and awareness regarding the clauses in the law, since lack of awareness and knowledge do not exempt an individual from abiding by its provisions. As an example, some insured individuals rush into taking the decision to retire as soon as they complete 20 years of employment without reaching the age of 50, only to discover later that the law links the service period to reaching the age of 50, which is when the insured person starts to blame the law and begin a career search from scratch. In order to avoid such situations, the GPSSA reminds customers of its ‘open door policy’ to offer consultation and advise about pivotal life-changing steps to take in the course of an insured persons professional and personal journey, in order to sustain and secure his/her life and that of his/her family’s.
Additionally, the UAE’s Pension Authority urges insured individuals to refrain from making informed decisions based on rumors, opinions about the future, unconfirmed predictions or unofficial announcements. Instead insured members must stick to facts about the pension and social security scheme. Said that, individuals should only retrieve credible information about pension and retirement from the competent pension authority in charge, since pension laws have a technical nature that may be difficult for some individuals to comprehend without explanation, and for that exact purpose, frequent awareness workshops are delivered to insured members all year-round by the GPSSA, in order to familiarize them with the law and encourage them to make insightful and sustainable decisions.
Pension systems across the world are either symbiotic systems or systems with fixed terms and benefits. Most Arab countries apply the symbiotic system in which insured individuals are in solidarity with one other in order to cover their insurance benefits. The nation sponsors this structure through its delegated social security and pension authority as well as the pension law, which promote unity and the ability to extend pension to family members after the decease of an insured member or pensioner, whether male or female, and for long decades.
Pension entitlement for family members according to this structure is an acquired right in the provisions of the retirement law. However, the value of a pension is not acquired, rather is it tied to the insured’s years of contribution as per the laws and provisions. The longer an insured participates in contributing, the higher the retirement returns and pension shares for his/her beneficiaries.
Therefore, the decision to retire in the right time should be a suitable and rational one in line with the UAE Pension Law’s intent to secure a family’s present and future; achieve social stability and cohesion and drive the economy forward, as per the UAE governments quest to protect Emiratis and their families from any social and economic obstacles, whether during the present or in the future, and to encourage further progress and prosperity for the entire nation.
The government pays attention in ensuring all Emiratis are well-taken-care-of throughout key moments in their lives, and across their entire lifespan, whether that includes families, babies, young children/minors, employees, mothers, fathers, individuals unable to take care of themselves due to natural and/or work-related injuries/conditions/illnesses/disabilities, old age and the list goes on. This cannot be achieved however, without the shared responsibility required from both insured individuals and pension funds; each party is required to commit to the principals and objectives of the UAE Pension and Social Security Law in order to reach the nations required goal.
