Dubai: The unpredictable nature factors shaping the retirement scene are forcing people to adjust their expectations for retirement while making it increasingly difficult to plan.
According to the HSBC study 80 per cent of UAE Millennials see saving as a difficult but necessary task, compared to 77 per cent for Generation X and 74 per cent for Baby Boomers. The awareness of professional advice is relatively high in the country with 67 per cent of Millennials saying they would actively seek financial advice from experts, compared to 61 per cent globally and ahead of more mature markets like the US (63 per cent) and the UK (46 per cent).
“It is encouraging to see that Millennials are starting to build awareness towards financial planning and that the average age to start saving is 28. Despite this early start, our experience shows that it is indeed a complex task which requires credible expert advice,” said Matthew Colebrook, Head of Retail Banking and Wealth Management, Mena and Turkey, HSBC Bank Middle East Limited.
The survey data shows UAE Millennials are ready to take bold measures to counter these concerns; 71 per cent are prepared to cut back on their present expenses to save, compared to 68 per cent of Generation X and 66 per of Baby Boomers.
Bold attitude
“Despite a number of factors going against Millennials in planning their retirement, their bold attitude sets them apart from previous generations. More than two thirds of Millennials (67 per cent) are among the most concerned about running out of money affecting their retirement.
In addition to curbing their spending, the young generation tops the list of risk takers. Around half of Millennials are very willing to make risky investments to ensure their financial stability, compared to 35 per cent for Generation X and 34 per cent for Baby Boomers. In the same token, 52 per cent actively move their money around to get the best return on investment, like the older generations.
Technology is changing the way people save for retirement. Fifty-three per cent of working age people agree that new technology makes it easier to save for their retirement. People are using new technology in different ways to plan for and manage their retirement.
