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UAE National Bond launches ‘Golden Pension’ Scheme for ex-pats working in the private sector.

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Staff Writer, TLR

Published on July 14, 2023, 17:41:00

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The first-of-its-kind Golden Pension Scheme in the UAE has been introduced by ‘National Bonds’ as a financial planning option for nationals and residents who work in the private sector. Employees will also be allowed to make monthly contributions starting at AED 100 under the ‘Golden Pension Scheme’.

It seeks to reach 89% of the population base in the UAE, this will help registered corporate employees by providing them with a head start on retirement preparation and increasing their financial resilience. They are allowed to withdraw funds collected in their names in addition to the gratuity paid by employers. The program aims to help organizations make financial end-of-service plans and helps them in efforts to retain workers. Employers and National Bonds will work closely to manage the funds. Although it is difficult to predict the fund's size at this time, the market is demonstrating a strong interest in medium to low-risk investments. 

According to Mohammed Qasim Al Ali, CEO of National Bonds, the national bond has adopted a strategy for investing and is attempting to invest in shorter-term commodities in line with the market trend. Through the National Bonds app, employees will have sight into the performance of their pension fund, they might be eligible for National Bonds' AED 35 million incentives program and life tactful coverage. 

The UAE is currently home to more than 8 million foreigners. Though this innovative program is designed especially for the commercial sector, they wish to provide ex-pats with the chance to invest in their future while also helping businesses with their employee retention strategy. Employers are allowed to invest in their employees' end-of-service funds through the program to increase the return on their gratuity. 

The program focuses on the following major topics -
Firstly, National Bonds will manage the funds for firms directly from the beginning to the end under the Golden Pension Scheme. The company has hired 8,000 individuals thus far based on corporate demand, but they expect this number to rise significantly over the next months. In the coming months, various potential alliances will be made public. 

Secondly, Corporate clients have the option to decide how long their subscriptions will last. Contracts can be signed for a minimum of one year, and businesses can decide on the maximum length. 
Thirdly, National Bonds will have a ‘sophisticated investment policy in place, that will outline where and how to invest the funds. This approach prioritizes income-generating assets, especially debt instruments.

Also, the user-friendly smartphone application from National Bonds will allow employees to view their pension portfolio and track the growth of their funds in real-time. Golden Pension Scheme employees have access to a practical digital platform and innovative, flexible savings options. The creation of the pension plan is a reaction to the growing demand from both employers and employees.

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