The anniversary coincides with the UAE’s decision to extend the ‘Year of Sustainability’
Mercer's most recent survey data showed that, globally, 85 per cent of respondents were willing to change their current lifestyle, realising that trade-offs such as saving more or downsizing, were necessary to afford to live longer. In addition, 40 per cent were willing to save a greater percentage of disposable income, followed by 32 per cent, who were willing to spend less and downsize. It was also found that 27 per cent were willing to take on part-time work.
Bayt.com's 'Salaries in the Middle East and North Africa' survey revealed that many professionals in the region have come to realise the importance of saving for retirement, with 65 per cent of UAE employees managing to save a portion of their monthly income.
"At the same time, the UAE was ranked first regionally for its end of service benefits, where 76 per cent of respondents receive end of service gratuity, seven per cent receive pension on retirement, and six per cent receive other forms of end of service benefits," said Masri. According to Mercer's 2018 International Geographic Salary Differentials Report, the UAE, along with Venezuela, Angola, and Switzerland are the highest-paying locations in the world across all career levels. However, many who come to the UAE, and the region, are often unprepared for the financial demands of retirement.
A recent YouGov survey showed that, in the Middle East, only 20 per cent of participants are confident that they are saving enough for a comfortable retirement, with nine percent saying that they are very confident. In addition, 80 per cent of UAE residents believe that the end of service benefit does not provide enough funding to cover retirement expenses. Mercer's 'Total Remuneration' survey painted a more worrying picture, showing that less than 10 per cent of companies in the UAE provide a savings plan to employees.
"Savings and investments should always go hand in hand, and it is extremely beneficial if people tend to learn the correlation and act upon it sooner than later," stresses Vijay Valecha, chief market analyst at Century Financial Brokers.
"Governments around the world have either gratuity or pension schemes to help people in forced savings, which has been a great step towards employee future protection," he noted. "These, however, are very low yielding savings and can by no means match up to inflation levels, which become a core part of a person's life when retiring. Each individual should learn to not rely only on gratuities, but learn investments as early as possible. Early investments have compounding growth returns and bear amazing fruit over the long term."
"Most people know they should be saving; the hard part is knowing where to start," said Mohammed Qasim Al Ali, CEO of National Bonds. "It is not surprising to see retirement planning is a key concern for UAE residents. While people save for a multitude of reasons including weddings and travel, retirement planning is unavoidable."
National Bonds' 2017 Financial Planning Survey found 69 per cent of respondents in the UAE were unsure of the steps needed to achieve their financial goals. Of those surveyed, 53 per cent were most interested in receiving advice relating to retirement planning. This was the case across the four audience segments surveyed including Arab expats at 53 per cent, Asian expats at 57 per cent, and Western expats at 64 per cent. UAE nationals, however, were more concerned with advice pertaining to financial health at 48 per cent, followed closely by retirement planning at 41 per cent.
- business@khaleejtimes.com
The anniversary coincides with the UAE’s decision to extend the ‘Year of Sustainability’
Redwood Center of Excellence offers a nurturing environment with an IB Primary Years Programme, blending Montessori, Reggio Emilia, EYFS, and STEM, ensuring holistic development for children
Both countries will not only promote existing relations in petrochemical, energy and infrastructure but they are keen to explore new avenues and sectors to diversify their economic relations
UAE’s most-awarded nursery chain pioneers quality education and child development across 30 convenient locations in the UK and UAE
Unveiling the strategies driving the UAE's spa and wellness industry to new heights
Say goodbye to layover woes and hello to unforgettable adventures with Turkish Airlines' Stopover Istanbul and Touristanbul programmes
It will be important to watch if the central bank nudges the South Asian currency higher as a slight downward bias is likely to persist in the market, says expert
K. Padmarajan, a 65-year-old tyre repair shop owner, began fighting elections in 1988 from Tamil Nadu state