Why Financial Well-Being Matters: In today’s fast-paced world, employees’ financial stress (or wellness) has a direct impact on their performance at work. In the UAE, many employees – especially expatriates – historically relied on the end-of-service gratuity and perhaps personal savings or home country pensions for retirement. However, with increasing costs of living and longer life expectancies, those approaches may fall short. Promoting financial well-being means helping employees feel secure about their finances now and in the future. A cornerstone of that is retirement planning: ensuring that during their working years, employees build up sufficient savings to support themselves when they stop working. The introduction of the new pension scheme is a perfect opportunity to encourage good retirement planning habits. Rather than treating the end-of-service benefit as a deferred bonus that one might use to, say, pay debt or a house, employees can now view it as part of a long-term nest egg, invested and growing for them.
The Need for Financial Literacy: Many employees may not be well-versed in investments or retirement concepts – and that’s understandable. It becomes incumbent on employers (and plan providers) to educate them. Concepts like compound interest, asset allocation, and the impact of starting early can profoundly affect outcomes. For instance, an employee who begins contributing an extra AED 1,000 per month to the pension at age 30 could have substantially more by age 60 than one who starts at 40, thanks to compounding. Illustrating these scenarios through interactive tools and calculators is highly effective. HAYAH recognizes this: its digital platform includes features like a retirement calculator to help employees visualize how saving 20% of income (a common recommendation by experts) sets them up for the future
Such calculators allow employees to input their age, salary, and contribution level to see their potential fund value at retirement, instilling an understanding of how today’s decisions impact tomorrow.
Effective retirement planning requires a long-term perspective. Tools like HAYAH’s retirement calculator help employees appreciate how consistent contributions over time (the sand in the hourglass) build a secure future nest egg.
Encouraging Voluntary Contributions: Under the UAE’s pension scheme, the employer’s contribution (5.83%/8.33%) might not alone secure a lavish retirement – it’s a baseline. Employees have the option to contribute voluntarily (up to 25% of their salary)
Encouraging employees to take advantage of this is crucial for their financial well-being. Here’s where education and plan design intersect. HAYAH’s platform can facilitate automatic payroll deductions for those voluntary contributions, making it effortless (out of sight, out of mind saving). But first, employees need motivation to opt in. HAYAH supports this through digital education modules and workshops. For example, via the partnership with Azimut, HAYAH offers seminars on investment strategies and financial planning
An HR team could schedule a lunchtime webinar with HAYAH’s experts to walk employees through questions like “How much should I save for retirement?” and “What does my ideal retirement lifestyle look like and cost?”. By providing projections and possibly one-on-one counseling (digitally or in person), HAYAH helps demystify retirement planning, turning it from an intimidating task into an achievable plan.
Life and Disability Coverage – Protecting the Journey: Financial well-being isn’t just about retirement savings; it’s also about protecting against life’s uncertainties that could derail those savings. This is why HAYAH’s life and disability insurance offerings are an integral support for employees. Imagine a scenario without insurance: an employee in their 30s has been diligently saving into the pension, but if a serious illness strikes and they can’t work, they might have to dip into those savings early or might stop saving altogether. HAYAH’s disability insurance can provide income replacement in such cases, ensuring the employee’s financial goals (including retirement) aren’t completely thrown off track. Similarly, life insurance gives employees peace of mind that if they pass away, their dependents will receive a payout that can, among other things, supplement whatever was accumulated in the pension. In essence, these insurance products act as a safety net, so that the retirement plan stays intact even when life doesn’t go according to plan.
From an employee’s perspective, knowing that “My employer and HAYAH have me covered – my family will be okay if something happens to me, and my retirement savings are growing if I live a long healthy life,” is hugely reassuring. It reduces anxiety and allows the employee to focus on work and other aspects of life. This holistic approach – savings plus protection – is the gold standard of financial well-being programs.
Digital Tools and Engagement: HAYAH’s digital ecosystem is a game-changer in engaging employees with their retirement planning. Many people find pensions boring or complex. HAYAH addresses this by using a user-friendly app and web portal that can turn data into relatable insights. For instance, the app might show an employee’s current fund balance and then, in a visually appealing way, show what that could translate to as a monthly income at retirement age – taking into account assumptions. It could also nudge users: “Increase your contribution by AED 500 to retire with an extra AED 200,000 in savings.” These nudges, powered by analytics, personalize the experience. Research has shown personalized guidance can significantly improve retirement preparedness
Indeed, HAYAH’s platform likely employs such personalized “what-if” scenarios
Employees can tinker with sliders for retirement age or contribution rate and immediately see the impact.
Another aspect of digital engagement is gamification and rewards. Some leading plans globally use rewards (like badges, or even monetary incentives) for completing financial education courses or hitting savings milestones. HAYAH could incorporate elements of that – for example, awarding a “Financially Fit” badge to employees who contribute above a certain percentage or providing free financial health check reports annually.
Retirement Planning as a Shared Responsibility: By introducing the pension scheme, the UAE has implicitly shifted retirement planning from being solely an individual’s responsibility (with the gratuity as a small help) to a shared responsibility between employer and employee. Employers contribute regularly; employees are encouraged to contribute too. This partnership can be emphasized in communications to foster a culture of saving. HR can work with HAYAH to run campaigns like “Secure Your Future” month, where employees get incentives for signing up for voluntary contributions during that period, or contests between departments on highest participation rates. The general public too is taking notice of retirement adequacy – gone are the days when one could rely on working indefinitely or on family support; structured planning is needed.
HAYAH’s domain experience comes into play here – having been in the life and savings business for years, they understand the common pitfalls in financial planning. For instance, one pitfall is cashing out retirement savings when changing jobs. The UAE scheme allows employees to withdraw voluntary contributions anytime
Which is a nice flexibility, but could be misused if employees treat it like a piggy bank. HAYAH can counsel employees on using that feature wisely (perhaps only for true emergencies) and ideally leaving the core to grow. They could share anonymized success stories or case studies, like: “Meet Ahmed: He started saving at 25 and by 55 bought a home with his fund!” vs. “Meet John: He delayed and had to catch up later with huge contributions.” These narratives, delivered via digital newsletters or interactive storytelling on the app, can motivate individuals by example.
Decumulation Strategies – Life After Retirement: Retirement planning doesn’t end at retirement – how one uses the accumulated savings (decumulation) is equally important for well-being. Many expatriates might leave the UAE at retirement and face the question of what to do with their lump sum. HAYAH’s expertise can guide employees well before that point. They can introduce concepts like annuities or systematic withdrawal plans, where an employee might convert part of their fund into a steady pension-like income for life. HAYAH is well-positioned to offer such decumulation products given its expansion into wealth management
For example, as employees approach, say, age 50 or 55, HAYAH’s platform might prompt them with information about converting some of their portfolio to lower-risk investments (to protect what they’ve accumulated) and options to purchase an annuity at retirement that guarantees income. Knowing that there’s a strategy for the “end game” of retirement savings boosts confidence in the whole process. It turns an intimidating unknown (“Will my money last in retirement?”) into a managed outcome (“I have a plan to draw down my money in a way that it lasts 30+ years.”).
The Ripple Effect of Financial Wellness: When employees are financially literate and actively planning for retirement, the benefits spill over. They are more likely to make other positive financial decisions – like maintaining an emergency fund, managing debt responsibly, or investing in further education (since they see the value of long-term thinking). An employee base that’s financially secure is less prone to money-related distractions or absenteeism. They may also retire on time. In some places, when employees don’t have enough to retire, they keep working out of necessity, which can affect succession planning and workforce rejuvenation. Ensuring employees can afford to retire when they reach retirement age is healthy for the organization in the long run. The pension scheme, plus guidance from HAYAH, paves the way for that.
In summary, the new pension landscape, supported by HAYAH, fundamentally enhances employees’ financial well-being. It provides structure and support for retirement planning that simply didn’t exist at this scale in the past. By coupling savings mechanisms with education and protection (insurance), HAYAH and employers together empower employees to take charge of their financial futures. This not only prepares the individual for retirement but fosters a more engaged, loyal, and productive workforce in the present. Retirement planning is no longer an afterthought—it’s becoming part of the workplace culture, and that’s a win for everyone.
Sources:
HAYAH Website – Retirement calculator and recommendation to save 20% of income highlight need for early and adequate saving
Kidbrooke Spotlight – Digital pension journeys can provide personalized guidance and help employees calculate optimal contributions and project outcomes
International Adviser – HAYAH/Azimut to offer workshops and seminars on investment strategies, market trends, and financial planning for clients (employees)
UAE Govt Portal – Voluntary contributions up to 25% of salary are allowed, giving employees a tool to boost their retirement savings
Additiv Press Release – HAYAH is integrating advanced technology to create a comprehensive digital ecosystem for both corporate needs and individual wealth aspirations
International Adviser (SCA License) – HAYAH’s mission is ensuring every employee can anticipate a financially secure future abundant with opportunities (Adil Saghir quote)
Additiv Press Release – HAYAH’s future plans include full digital wealth management, indicating decumulation strategies will be in play for retirement income
PwC Middle East – (Background) Emphasizes the importance of employee financial wellness programs in GCC, noting that structured retirement plans improve workforce morale and loyalty (contextual)