While the UAE is attracting more retirees than ever, many find they are unable to keep up with the costs of health insurance, particularly in the over-60s bracket.
There are no specific packages for retired people and, when they reach their 60s, premiums significantly rise, especially for those with pre-existing conditions.
This is an issue that is pricing many people out of living in the UAE long term in their later years.
British retiree Jo Woolston, 67, who has no pre-existing conditions, was paying about Dh30,000 ($8,168) for her health insurance annually when she first moved to Dubai two years ago. But, following a one-off operation on a torn knee ligament, those costs rose to more than Dh90,000 per year when it was time to renew.
As she is sponsored by her son-in-law, she is now on a basic policy for just over Dh25,000 annually that has limited network coverage.
“I had to get some sort of insurance as it’s the law here, but some over-70s I’ve met don’t have any cover and just pay as they go,” she says.
“It’s so expensive, hopefully some company will do something about it. I would rather pay a smaller premium and then pay 50 per cent or more co-pay when you do use it.
“I’d like to stay out here for another five or six years at least, but the only thing that would make me go back is the cost of health care.”
Loaded premiums and soaring renewal costs
Toshita Chauhan, business head of health and motor insurance at Policybazaar.ae, says this is a continuing issue among her clients.
Currently, there are different rules for the emirates, with health insurance coverage only mandatory in Dubai and Abu Dhabi, where residents will receive a fine if they do not have a policy. All residents must be insured to a minimum annual cover of Dh150,000, which must include outpatient and inpatient services.
In the Northern Emirates, there is no minimum product inclusion regulation, but as of January 1, 2025, employer-paid health insurance will become mandatory nationwide.
Ms Chauhan says basic annual plans can start for as little as Dh5,000, which will give members access to lower-cost hospitals such as Aster or NMC, instead of premium providers including Mediclinic.
The costs then go up depending on a buyer’s needs, sometimes reaching up to Dh1 million and beyond, says Ms Chauhan.
“For example, if you want UAE, regional or worldwide cover. If you want something including the US and Canada, that price can obviously pile up.”
The more serious your medical conditions are, the higher the premiums will be, she adds.
“Members who have borderline diabetes or hypertension will get a certain amount of premium loading versus someone who has diabetes and is on insulin.”
The more you claim, the more your policy will be at the time of renewal, too. Policies typically last 12 months and after that period, the insurance company will calculate any claims that have been made and the likelihood of claims for certain conditions in the next year.
In Dubai, companies can load up to 100 per cent of the current premium per condition, Ms Chauhan explains, so if your policy is worth Dh10,000 annually and you develop a spinal issue within that year, then they can add another Dh10,000 to your premium the following year.
Anyone who has made multiple claims in a year but doesn’t have a specific condition may also be pegged as someone with health anxiety, which can again add to the premium.
“For healthy people, it's much easier to sustain the cost of health insurance because they don't get so many loadings on their renewals … But above 60, it's very rare that members will not have any pre-existing condition, so that becomes more expensive,” Ms Chauhan says.
“It is not something that is easily affordable, and there is no particular plan for retirees.”
Loopholes are risky
There are some clients who wish to go on a basic plan for legal reasons, but not declare any pre-existing conditions and go back to their home countries for regular treatment, but Ms Chauhan says this is risky.
“Let’s say tomorrow you have a fever and it requires some sort of additional treatment … The doctor will look at medical history and what medicines you’re on, and they will write it down, and you will tell them what you’re taking, and that’s when your truth comes out.
“This record goes to the insurance company for approval, and they will look at what you declared at the time of buying insurance. If you said no condition, versus what the doctor has said, they will decline everything.”
Changing insurer each year cannot help bring premiums down, either, as companies can access your health records through independent, third-party administrators, she adds.
Some people have started avoiding health insurance costs altogether. One UAE resident, who lives with his parents, was unable to afford coverage because his mother, 69, previously had cancer and his father, 72, had a heart condition. The lowest quote he could find was Dh60,000 per parent annually.
“We did not find any suitable and affordable insurance, so we make sure my parents travel to India once every six months and get their check-up done and get the medicines,” he says.
“The new law [on mandatory health insurance] will be challenging for us. Hopefully by that time some sensible insurance comes in place which can help these kinds of cases.”
Ms Chauhan says they always strongly recommend buying health insurance in the proper manner, “because when you really need it, no one will give it to you”.
Start saving now
Carol Glynn, a personal finance coach based in the UAE, says these are all common concerns among her retired clients.
“As most people have always had their medical insurance provided by their employer, they can get a shock when they learn just how much it costs,” she says.
“Often, they feel resentment, as even if they have not had any medical issues, many insurance companies increase premiums arbitrarily with age, and so they feel premiums are disproportionately high for older individuals.
“This makes it challenging and frustrating to find comprehensive coverage that fits their budget or what they view as good value for their money.”
Complex policy terms and conditions can also be overwhelming and confusing for her clients, she adds.
“No matter where you plan to retire, it is crucial to plan ahead for all costs, including health insurance costs,” says Ms Glynn.
“Make sure you have a clear understanding of the potential costs and set aside sufficient funds to cover them.
“The earlier you start saving for this, the more options you will have available to you when the time comes,” she adds.
“Put the savings in an interest-bearing account, so it’s growing in the years before retirement. If you have more than five years to retirement, consider putting these savings into an investment such as an exchange-traded fund to maximise your growth potential.”
Ways to maximise your insurance budget include considering basic health plans, which offer a safety net for essential health services, or downgrading your network access to include lower-cost hospitals, Ms Glynn recommends.
Removing services such as dental and optical, and saving for those separately, can also reduce your premium, as can optimising your co-payment percentage.
Ms Glynn emphasises the need to start researching and securing health insurance as early as possible, and thoroughly compare insurance providers and policies to find comprehensive coverage at a price that fits your budget.
“Haggle,” she adds. “Use comparison prices to ask for price matching or discounts. The worst that can happen is they say no.”
Finally, focus on your health, she says. “Maintaining a healthy lifestyle can potentially lower your insurance premiums and reduce your need for medical services.”
Ms Chauhan says that while it can be unaffordable for many now, she strongly believes this will change in the future.
There are already initiatives in place, such as a new Abu Dhabi cancer care centre that has pledged to deliver same-day check-ups for drop-in patients with consultations being free, regardless of insurance status.
“The UAE is adapting,” says Ms Chauhan. “It is doing so much more to make it more stable and long-term for people to be here. I’m sure there will be reforms that will come in.”
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Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
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Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
What is Reform?
Reform is a right-wing, populist party led by Nigel Farage, a former MEP who won a seat in the House of Commons last year at his eighth attempt and a prominent figure in the campaign for the UK to leave the European Union.
It was founded in 2018 and originally called the Brexit Party.
Many of its members previously belonged to UKIP or the mainstream Conservatives.
After Brexit took place, the party focused on the reformation of British democracy.
Former Tory deputy chairman Lee Anderson became its first MP after defecting in March 2024.
The party gained support from Elon Musk, and had hoped the tech billionaire would make a £100m donation. However, Mr Musk changed his mind and called for Mr Farage to step down as leader in a row involving the US tycoon's support for far-right figurehead Tommy Robinson who is in prison for contempt of court.
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
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What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
Henrik Stenson's finishes at Abu Dhabi HSBC Championship:
2006 - 2
2007 - 8
2008 - 2
2009 - MC
2010 - 21
2011 - 42
2012 - MC
2013 - 23
2014 - MC
2015 - MC
2016 - 3
2017 - 8
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TEACHERS' PAY - WHAT YOU NEED TO KNOW
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
What is tokenisation?
Tokenisation refers to the issuance of a blockchain token, which represents a virtually tradable real, tangible asset. A tokenised asset is easily transferable, offers good liquidity, returns and is easily traded on the secondary markets.
UAE currency: the story behind the money in your pockets
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
