UAE’s ‘Second Salary’ plan: What you need to know about the new retirement scheme

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The UAE’s National Bonds on Monday announced the launch of a ‘Second Salary’ plan, a customized savings scheme created for nationals and residents to help generate a supplementary income.

The launch is the first part of a long-term program aimed at providing retirement plans in the country, according to the Emirates News Agency (WAM).


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The ‘Second Salary’ scheme offers a personalized income-generating solution to ensure that UAE citizens and residents can continue to sustain a desired lifestyle and save money.

“We created the Second Salary plan in response to the growing demand for ways to create a sustainable extra income for our customers,” Group CEO of National Bonds Mohammed Qasim al-Ali said.

Here’s everything you need to know about the new savings plan:

The plan comprises of two main phases: “savings” and “income.”

In the first phase, the “savings” stage, customers will place money into National Bonds every month for a period between three to 10 years.

During the second phase, the “income” stage, customers can begin withdrawing money every month, receiving their base investment amount monthly plus any accumulated profit.

So, for example, if a customer saves $1,361 (AED 5,000) monthly, they can expect to withdraw $2,042 (AED 7,500) for the subsequent 10 years, according to the WAM report.

Similarly, if customers were to save $1,361 (AED 5,000) per month for five years and choose to withdraw their money within a period of three years, they can take home a monthly amount of $2,728 (AED 10,020) for three years – more than double their monthly savings.

To opt for a “Second Salary,” customers must place a minimum monthly investment of $272 (AED 1,000) for a minimum period of three years, WAM reported.

Clients can also choose to redeem their savings as a lump sum instead of a monthly payment if they have specific financial goals to meet, such as payment of school tuition fees, a down payment for a house, or for investments.

Under the scheme, customers will also have the chance to win rewards and cash prizes from National Bonds.

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