A recent survey conducted by YouGov for Zurich International Life indicates that over 82% of UAE residents believe allocating up to a fourth of their monthly income is sufficient for their future retirement plans. Despite this confidence, the majority express concerns regarding financial comfort during their retirement years, with more than 61% apprehensive about their post-retirement financial situation.
The survey highlights a surprising trend: only 4% of residents participate in a retirement savings plan. Instead, a significant number prefer investing in gold (50%) and real estate (47%), pointing towards a cultural preference for tangible, stable assets expected to appreciate over time.
Experts, including Rupert J Connor from Abacus Financial Consultants, warn against over-reliance on end-of-service gratuity as a retirement fund, stressing the need for adequate savings plans. With retirement potentially extending beyond 20 years, the gratuity payout is unlikely to support a similar lifestyle without frugality.
Interestingly, the desire to retire early is strong among UAE residents, with 73% aiming to retire between the ages of 50 and 65, according to Zurich’s study. This ambition underscores the importance of early and dedicated financial planning. Entrepreneurship emerges as a key retirement goal, with 44% of respondents aspiring to start a business.
The survey also sheds light on bonus expectations, with 68% anticipating a bonus this year, a significant increase from 48% in 2023. However, saving for retirement seems to be a lower priority, with only 22% planning to allocate their bonus towards it.
Reflecting on life post-retirement, almost 70% of respondents express a desire to retire in the UAE, especially among the younger demographic (18-24 years), who show an 89% preference.