Retirement, homes top saving priority

Dubai - Over 34 per cent of UAE nationals save to buy a house, while 24 per cent of them save for retirement, the National Bonds Corporation has announced as part of the results of its ongoing financial health check survey.

The findings also indicate that 36 per cent of UAE nationals save for a major purchase, however only seven per cent save for their children's education. As for other nationalities, 37 per cent save to buy a house, 35 per cent for retirement, while 18 per cent save for a major purchase, and only 10 per cent save for education.
In additional findings from the survey, 56 per cent of UAE nationals said they make monthly payments towards personal loans, 32 per cent are settling credit card debts, while as few as 12 per cent are paying off mortgages. As for other nationalities in the UAE, the survey found 50 per cent of the respondents are paying off personal loans, while 38 per cent make credit card payments, and only 13 per cent are settling mortgages.
The financial health check results also indicate that 20 per cent of UAE nationals among the respondents usually save monthly, as opposed to only 11 per cent of single UAE nationals. In yet another interesting outcome, 52 per cent of UAE women from all nationalities don't have an emergency fund, while six per cent of female UAE nationals do. Additionally, 17 per cent of UAE national respondents said they have takaful insurance, and 14 per cent of respondents from all nationalities said they do.
"Five months since our last financial health check, we are observing a major shift in our savers' financial behavior. We are happy to note that saving for retirement and homes is gaining precedence among customers of all nationalities. However, debts due to personal loans and credit cards remain the biggest challenge. We at National Bonds are well aware that bad habits die hard. This is why we offer a comprehensive financial planning strategy that helps customers achieve a balance between their needs and wants, their budgets and liabilities," Mohammed Qasim Al Ali, CEO of the National Bonds Corporation, said.
The CEO also highlighted the debts paid by the majority of savers against personal loans and credit cards, saying: "Despite the increased awareness today about the importance of savings and the burden of debt, the credit card culture continues to weigh heavily on many people draining their income and severely impacting their financial security and the future of their children."
"The issue of debt is more related to habit than need if we consider the high income levels of individuals and consumption trends in society. This habit is reinforced by excessive consumption associated with earlier economic phases, but the same habits may not be appropriate for the upcoming economic phase if recession and its related challenges continue to adversely impact the global economy," he added.
rohma@khaleejtimes.com 

• UAE