When you swap deadlines for sunrise walks and boardroom meetings for morning coffee on the terrace, that’s retirement. In the UAE, that milestone just got extended. From January 1, 2025, the standard retirement age in many private-sector settings will move up — affecting millions of workers, both Emiratis and expatriates. This change isn’t just symbolic. It can reshape careers, savings, and long-term plans.
Whether you’re midway through your working life, nearing retirement, or advising someone who is — understanding these changes is essential. In this article, we’ll walk through what has changed, who is affected, the exceptions, the benefits, and what you should do now.
The Jump to 65 in the Private Sector
From 2025 onward, the commonly referenced retirement age for private-sector employment on the UAE mainland is 65 years for both nationals and expatriates.
Previously many employers applied age 60 or 62 as retirement age for expats.
Under the current rules, after age 65, work permits may still be issued on an annual basis if the employee’s expertise is required.
Note: Free-zone entities may operate under different retirement/visa terms.
| Aspect | Previous Common Age | New Standard Age |
|---|---|---|
| Retirement age (private) | ~60 | 65 |
| Work beyond standard age | Occasionally | Possible annually post-65 with approval |
This means for many workers nearing 60 in early 2025, there is now potential to continue employment up to 65 under appropriate conditions — giving extra years to earn, save, invest and plan.
Public Sector and Pension Law Developments
For Emiratis in federal (government) roles, pension law reforms also matter. A new rule applies to pension eligibility conditions: minimum age now 55 years with 30 years of contribution service in many cases.
Key points:
The General Pension & Social Security Authority (GPSSA) announced the minimum age for pension entitlement is 55, with 30 years of contributions.
Pension calculation is now aligned between government and private sectors — based on the average of the last six years’ salary.
Service periods prior to UAE nationality or employment may now be consolidated under certain conditions.
In other words, while the term “retirement age” is often used, for pension-eligible nationals the focus is on contributions, service years, and eligibility conditions rather than strictly “age equals stop working”.
Exceptions & Early Retirement Options
Not everyone must work until 65. Several pathways exist:
Certain employees may retire early if they meet years-of-service thresholds and employer agreement.
Women, in some regulatory frameworks, may have earlier eligibility for pension or retirement under the national law.
After age 65 in the private sector, annual permit renewals still require employer approval.
It’s critical to distinguish between contractual retirement age (which an employer may set) and eligibility for pension/permit renewal, which is regulated.
Financial Impact: More Years = More Earnings & Benefits
Extending the working period from 60-65 years offers significant benefits:
Additional years of salary earnings
Longer contribution period to pensions or gratuity schemes
More time to accumulate investment, savings, property
Employers may require higher performance or annual renewals post-65
Even if you retire earlier, being aware of the changes helps you plan for timing, tax, visa, and investment decisions.
What Expats Should Know
For expatriates:
While pension frameworks for UAE nationals don’t apply the same way to expats, the work permit and visa renewal regime is directly affected.
Employers of older employees (close to or over 65) may switch to annual renewal basis.
Free-zone companies and contract terms may differ — always review your contract and visa issuance terms.
Practical Steps for Workers & Employers
For Employees:
Check your employment contract — what retirement/termination age is stated?
If you are over 60, discuss with your employer about renewal terms post-65.
Update your savings and investment plan to reflect that working years might extend.
If you plan “exit” at 60 instead of 65, compute the difference in earnings and benefits.
For Employers:
Review HR policies in light of age-related employment and renewal rules.
Establish guidelines for annual work-permit renewals for over-65 employees.
Communicate clearly with staff approaching 60 about their options.
Final Thoughts: Why This Change Matters
Raising the retirement age to 65 in many private-sector roles signals a shift in the UAE’s economy: valuing experience, retaining talent, supporting longer careers, and aligning with international norms.
Whether you’re a UAE national, expatriate employee, or HR manager, understanding this reform is vital for your career strategy, financial planning, and future aspirations. Work life may stretch a little longer — but so does your opportunity to build for tomorrow.
