The United Arab Emirates has made significant strides in the 2026 Global Pension Index, released by Mercer and the CFA Institute, demonstrating improvement in its retirement income system. With a score of 70 points, an increase from 64.9 in 2025, the UAE has successfully upgraded its ranking from a “+C” rating to a solid “B”. Notably, the retirement system received an “A” classification in both the adequacy of pensions and system integrity and protection for participants.
Key Components of the Global Pension Index
The index assesses retirement systems based on three main pillars: benefit adequacy, sustainability, and integrity, alongside a range of economic, social, and demographic factors.
A Commitment to Pension System Development
The General Authority for Pensions and Social Security has emphasised that these results provide an important international benchmark to support the ongoing efforts to enhance the retirement income system in the UAE. The Authority stressed that ensuring the sustainability of the pension system remains a national responsibility, aimed at protecting the rights of current members and retirees while guaranteeing its viability for future generations.
Recent Developments and Initiatives
In recent years, the pension system has undergone several legislative and administrative reforms, including the issuance of Federal Decree Law No. 57 of 2023 on pensions and social security. Additionally, the continuous development of digital services and programs promoting financial literacy and early retirement planning has been a focus. Initiatives such as the “Wafra” program, designed to enhance financial literacy, and the “Tawazun Step” program, which offers financial guidance, are part of this effort. Furthermore, retirement consultations and digital services are accessible through the “My Pension” platform operated by the Authority.
Looking Ahead
The Authority has committed to ongoing analysis of the index’s results and recommendations in coordination with relevant governmental entities. This collaborative approach aims to leverage insights for improving the insurance system, enhancing services, and reinforcing the sustainability of pensions for both current and future generations.