Majority of UAE's wealthy will work post-retirement age

Dubai: The majority of high networth individuals (HNWIs) in the Gulf prefer to continue working late in life, according to a study by Barclays Wealth.

The report titled The Age Illusion: How the Wealthy are Redefining Their Retirement, the 12th in the Barclays Wealth Insights series, shows that 92 per cent of HNWIs in Saudi Arabia, 91 per cent in the UAE and 89 per cent in Qatar prefer to continue working even after their normal retirement age.

The research shows that, while HNWIs in the Gulf Cooperation Council (GCC) are most enthusiastic about working well past their retirement age, the ‘Nevertirees' concept is less popular in the UK where only 60 per cent of the respondents are keen on working late in life.

In the US, the figure is 54 per cent and in Switzerland and Spain, it is 34 per cent and 44 per cent respectively.

To some extent, this can be explained by age differentials as 59 per cent of millionaires in the emerging markets are under 45, compared with just 16 per cent in Europe and 21 per cent in the US.

Different approach

GCC respondents' desire to keep on working may also reflect different social attitudes to the concept of retirement itself.

Europe has now had five decades or more to adapt to the concept of provisioned-for retirement at around age 65. In contrast, this concept does not have deep roots in the Middle East.

"This represents a step change for wealthy people. Whilst previous generations looked to create their wealth early on in life with a view to enjoying it when they retired, this report reflects a different attitude, with people wanting to continue to challenge themselves well beyond the traditional retirement age," Soha Nashaat, Chief Executive of Barclays Wealth Middle East, said.

Sixty per cent of wealthy individuals polled in the global survey say that they plan to become a Nevertiree, but instead of continuing to work in the traditional mode, they prefer to start businesses and take on new projects.

The findings show that the concept of Neveretirement is expected to grow in popularity over the coming decades, with over 70 per cent of respondents under the age of 45 saying that they will always be involved in some form of work.

Succession planning

The report also identifies GCC HNWIs as the most concerned about succession planning compared with the rest of the world.

Nearly 100 per cent of respondents in the UAE and Saudi Arabia feel financially responsible for their children. For example, a majority of respondents in the GCC indicated that they wish to leave a sizeable amount of their wealth to their children when they die. HNWIs in the region also mentioned that their next generation will live wealthier lives than theirs.

The research also shows a trend for the very wealthy to feel more financially responsible for their children than other wealth groups — about 94 per cent of HNWIs in Qatar and 91 per cent in the UAE agree that passing on their wealth to the next generation is important.

At the other end of the spectrum, wealthy individuals in developed economies do not feel that they are financially responsible for the next generation, with Switzerland (38 per cent), Japan (41 per cent) and the US (44 per cent) at the bottom of the list.