Best Annuity Plans for Retirement in UAE

What is an Annuity Retirement Plan?

An annuity scheme is like a monthly salary you get after you stop working. You invest a lump sum or small payments over time. In return, the insurance company gives you regular payouts like monthly, quarterly, or yearly. These payouts can start right away (immediate annuity) or later when you retire (deferred annuity).

It’s one of the best retirement annuity choices if you want to feel financially safe and not rely on anyone.

What is an Annuity Retirement Plan?

An annuity scheme is like a monthly salary you get after you stop working. You invest a lump sum or small payments over time. In return, the insurance company gives you regular payouts like monthly, quarterly, or yearly. These payouts can start right away (immediate annuity) or later when you retire (deferred annuity).

It’s one of the best retirement annuity choices if you want to feel financially safe and not rely on anyone.

How Does an Annuity Retirement Plan Work in the UAE?

Here’s how it usually works —

1. You invest money: either as a one-time payment or small payments over a few years
2. You choose your plan type: do you want the income now or later?
3. You start receiving regular payouts: monthly, quarterly, or yearly
4. You choose the duration: for your lifetime, a fixed number of years, or until both you and your spouse pass away

Types of Annuity Schemes in the UAE

Annuity retirement plans are all about securing regular income after you retire. But not all annuities work the same way. Depending on when you want to start receiving income, annuities are mainly of two types:

1. Deferred Annuity – Income Later

Think of this as planting a tree today that gives you shade (and money) in the future.

• What is it? You invest now, either as a lump sum or through regular payments. The plan gives you income after a few years, typically when you retire.
• Best for: People who are still working and want to build a future income stream.
• When do you get money? After the "accumulation phase" (usually after 5–10 years).
• Why choose this?
  ✔ Lock in returns early
  ✔ Build a retirement fund slowly
  ✔ Option to include death benefits for your family
• Example
  You're 45 and start a deferred annuity with AED 50,000. At 60, you start receiving monthly income for life.

2. Immediate Annuity – Income Now

This is like buying a tree that starts giving you fruit from Day 1.

• What is it? You pay a lump sum. The income starts right away, usually within a month.
• Best for: People who are already retired or about to retire and need instant income.
• When do you get money? Payments begin immediately (based on your selected payout frequency).
• Why choose this?
  ✔ Immediate, guaranteed income
  ✔ No market risk or investment management required
  ✔ Joint life option to cover spouse
  ✔ Return of purchase price (ROP) available for nominees

Example: At age 60, you invest AED 100,000 and begin receiving monthly payouts of AED 5,000 from next month.

Other Types of Annuity Schemes

Benefits of Annuity Retirement Plans 

You Get Money Every Month After You Retire

Think of an annuity scheme like a magic money box. You put money into the box now. Once you stop working, the box gives you money every month. So just like a salary, it can help you still pay for food, rent, or fun things!

You Always Get the Same Amount 

Some plans give you the same money every month, no matter what’s happening in the world. Even if the stock market goes up or down, your money doesn’t change. It’s like having a fixed pocket money that never runs out.

You Can Add Your Spouse Too

Let’s say your plan is for you and your husband or wife. If something happens to you, the monthly money can still go to them. That way, you make sure your loved one is also taken care of.

Good for Planning Your Future

If you're worried about not having money after you stop working, this plan gives you peace of mind. You’ll know that every month, there’s money coming in, so you don’t need to ask anyone for help.

While planning for a comfortable tomorrow, make sure your current is secure too with the best investment plans in UAE.

Best Annuity Plans in the UAE 2025

Always read policy documents before buying. Features may vary by plan.

Who Should Buy an Annuity Retirement Plan?

You should consider buying an annuity if —

• You don’t have a pension and want a regular income
• You’re worried about medical or living costs after retirement
• You want to support your spouse or family after you're gone
• You’re close to retirement and want to convert savings into income
• You want to keep things simple and safe, with no active money management

How to Choose the Best Annuity Plan for Retirement?

Ask yourself —

• Do I need income now or later?
• Should it cover just me or also my spouse?
• Do I want a fixed or market-linked return?
• Do I want to leave money for my kids or family?

Once done, compare plans based on —

• Payout frequency
• Fees and charges
• Death benefits
• Insurance company reputation
• Currency and flexibility

Bottom Line

The best annuity plan for retirement is the one that matches your lifestyle, timeline, and peace-of-mind needs. These plans give you a simple, no-fuss way to create income for life.

✅ Peace of mind
✅ No reinvestment stress
✅ Safe for all life stages

So, whether you’re 40 and planning ahead, or 60 and about to retire, now’s the time to explore the annuity schemes that fit your lifestyle.

FAQs for Best Annuity Plans in UAE