We may live in one of the richest countries in the world – with among the highest per capita GDP – but all those hedonistic flashy cars and Friday brunches appear to be taking their toll.
A majority of respondents in a new poll said they don’t think they earn enough money to put some aside for the future. The survey’s findings indicated that that less than half of all UAE residents set aside a portion of their monthly salary for rainy days or retirement. And as much as 30 per cent do not save anything at all – because nearly half that number (13 per cent) believe life is too short to save.
The survey was conducted by compareit4me, a regional finance comparison site.
The World bank ranks the UAE sixth in the world for its high gross domestic product (when adjusted for purchasing power parity), ahead of Norway and the United States but after Switzerland. GDP is often considered a simple indicator of a nation's wealth. However, without a state pension system, expatriate workers in the country must save for their own retirement.
“It’s easy to put off saving especially in your younger years, but before you know it, another year has passed and you still haven't put your saving plan into action," Sonja Stephen, Editor at compareit4me group, said in a statement. "There are a wide range of investment opportunities available to expats."
The UAE has its own share of options for the financially savvy, she added. “It hasn’t always been the case, but savers in the UAE can now earn higher returns on their money. The majority of the UAE banks are now offering attractive savings and fixed deposit accounts too,” she said.
According to the survey, most people attribute financial insecurities to a lack of income and list loans and credit card debt among their biggest concerns. “Along with good credit card management, making payments in full and on time, both factors which are essential to avoid debt, it’s smart to focus on a savings plan,” Stephen added.
“Individuals should tailor a realistic savings plan to suit them and should take positive steps to achieve their goal. Increasing emergency savings, signing up for a good pensions plan and even investing are all key areas that should never be overlooked,” she cautioned.
