Dubai: The great divide between men and women continues to exist in many ways, including in the area of finances. When presented with financial hardship, men are more likely to break open their retirement savings to survive, a recent study showed.
In its survey, The Future of Retirement: A new reality, HSBC concluded there is a prevalent lack of saving plans across the UAE and the situation looks worrying in a lot of men. The study found that about a third of men (31 per cent) in the country would consider using their retirement money in times of financial strife compared to less than a quarter of women (21 per cent).
The fairer sex are also more likely than men to consider resorting to extreme measures, such as downsizing to a smaller house, selling personal valuables and shifting to a better-paying job to cope with trying times.
“Women appear to be more concerned about maintaining their retirement savings compared to men in the UAE and seem to be less likely to dip into this fund when they are financially constrained,” said Gifford Nakajima, regional head of wealth development, HSBC Bank Middle East Limited.
“It is also interesting to note that men are less proactive when coping with unforeseen circumstances, however, this attitude can grow to be a significant problem as it will put more pressure on them in the future.”
HSBC’s survey included 15,000 respondents in 15 markets and more than 1,000 people in the UAE. While many of today’s men are willing to sacrifice their retirement savings when things go bad, the study found that half of the people in the UAE don’t save regularly.
That means many of the residents will not have any option except to resort to some extreme moves when they find themselves in a tight financial situation. But more women will be willing to do the extreme.
The study found that 22 per cent of women would move to a smaller house to deal with financial difficulty, compared to 16 per cent of men.
More than 30 per cent of females are likely to sell their valuables, compared to 20 per cent of males. Nearly half (40 per cent) of women would also look at the possibility of getting a better-paying job, while only 28 per cent of men would do the same.
Differing attitudes towards finances can put a strain on many aspects of a relationship. It is therefore important that couples find a middle ground that both parties can live with when dealing with hardships.
“Both parties must learn to respect each other’s natural instincts and trust that they are working towards the family’s best interests. Men need to oblige their partner with more time at home, while women need to accept that their partners have to be at the office,” advised Dr Raymond Hamden, clinical and forensic psychologist, Human Relations Institute and Clinics.
“A balance in this understanding is essential, and being able to effectively communicate this fosters cooperation. This is a win-win process and is essential whether people are managing their finances or their daily lives,” he added.
Nakajima said the study also highlighted the need for consumers to plan for their retirement, and for men, as well as women, to change their current habits.
“While these differences between the financial planning habits of men and women are surprising, the predominant lack of saving plans across the UAE is troubling. Although erratic saving habits are understandable given the unstable economic environment over the past few years, it is essential that both men and women significantly alter their current habits and adopt a more formal attitude towards financial planning.”
