1Password's $12 price bump tests user loyalty with 'AI-powered' features

1Password has sent emails to subscribers notifying them that it is raising the price of its Family plan from $59.88 to $71.88 USD annually — a $12 increase that takes effect on 27 March 2026. The 20% price jump brings new AI-powered features and enhanced security tools, though existing subscribers won't see changes until their next renewal after the March deadline.

What's changing with 1Password pricing

The new $71.88 annual price represents 1Password's first major pricing adjustment in years, justified by what the company calls "significant investments" in new features. Current subscribers who renew before 27 March 2026 will maintain the $59.88 rate until their next renewal cycle.

For UAE users, this translates to roughly AED 264 annually at current exchange rates — up from approximately AED 220. Pricing remains in USD, with no localised AED rates.

The timing gives users over a year to evaluate whether the enhanced features justify the 20% increase or to explore alternatives before their renewal falls into the new pricing tier.

New features driving the price increase

1Password's justification centres on six key enhancements: automatic saving of logins and payment details, enhanced Watchtower security alerts, faster device setup processes, AI-powered item naming, expanded account recovery options, and proactive phishing prevention.

The AI-powered naming feature automatically categorises and labels saved items, while the enhanced Watchtower system provides more detailed security breach alerts. Proactive phishing prevention is the most significant security addition, actively warning users about suspicious sites.

I think these improvements feel incremental rather than transformative. The phishing prevention and Watchtower enhancements carry real security weight, but the 20% price increase seems steep for features that largely refine existing functionality rather than introducing breakthrough capabilities.

How this stacks against competitors

At $71.88 annually, 1Password Family remains competitive with Dashlane's family tier but widens the gap with budget alternatives. Bitwarden's family plan at a significantly lower price will likely attract cost-conscious UAE users already managing currency conversion challenges.

In my experience with password managers, the price gap isn't large enough to trigger a mass migration, but it gives fence-sitters a reason to finally explore alternatives. The Kaspersky report on GCC cyberattacks highlights why robust password security remains essential, regardless of which platform you choose.

For users invested in 1Password's ecosystem — particularly those using business features or multiple device types — the premium may be justified. New users might find better value elsewhere.

What this means for UAE users

The March 2026 effective date provides ample time to assess alternatives or negotiate annual payment cycles to delay the increase. Given the spike in regional cyberattacks and increasing internet security challenges, password manager investment remains crucial — the question becomes which platform offers the best value.

I recommend evaluating your actual usage of 1Password's advanced features before renewal. If you primarily need basic password storage and sync, cheaper alternatives might suffice.

1Password pricing and timeline

The new $71.88 USD annual pricing applies only to Family plans, with no announced changes to Individual or Business tiers. The increase takes effect March 27, 2026, but only affects renewals occurring on or after that date.

Current subscribers renewing before March 27, 2026 will maintain existing pricing until their next renewal cycle. 1Password continues operating through direct subscriptions and App Store billing, with no announced UAE-specific retailers or localised payment options.

Frequently Asked Questions

When does the new 1Password Family plan pricing take effect?

The new annual price for 1Password Family plans takes effect at your next renewal on or after March 27, 2026. Renewals before this date maintain current pricing.

What is the new annual price for 1Password Family plans?

The new annual price for 1Password Family plans will be $71.88 USD, increasing from the current $59.88 USD — a $12 or 20% increase.

Why is 1Password increasing its prices?

1Password cites the need to continue investing in innovation and security, highlighting new features like AI-powered naming, enhanced Watchtower alerts, and proactive phishing prevention as justification for the increase.

How much will 1Password cost in AED for UAE users?

At current exchange rates, the new $71.88 USD annual price converts to roughly AED 264 for UAE users, up from approximately AED 220 previously.

Are there alternatives to 1Password for UAE users?

Yes, alternatives like Bitwarden offer significantly cheaper family plans, while Dashlane provides similar premium features. The choice depends on your feature requirements and budget priorities.

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