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UAE residents urged to be aware of careless spending and plan for future

United Arab Emirates: Wednesday, November 28 - 2012 @ 11:19

The trend for spending without forethought was vividly detailed in the recently published 2011 National Bonds Saving Index, which found that 87% of residents surveyed did not believe their savings were adequate for the future.

Only 1% of UAE residents felt their savings were ‘more than enough’ for the future.

According to the Arab Monetary Fund, the UAE has an average individual spend per year of around Dhs79,252 per annum – the highest in the region.

“While there is absolutely nothing wrong with enjoying life, the longer you forge ahead without a financial or retirement plan in place, the longer you will regret the missed opportunity to take decisive action when you were best able to,” said Peter Ellen, Operations Director, Nexus Insurance Brokers.

Nexus Insurance Brokers, which regularly raises awareness across the region about the dangers of living without a solid financial plan through road-shows, seminars and industry thought-leadership, advises concerned residents to start with a simple question: “what quality of life do I want when I retire?”

While there are a number of ways to save for retirement, Nexus believes key is to accumulate enough money to provide a comfortable retirement income.

“Your savings should not just be geared towards mere survival, but aim to support the lifestyle to which you have become accustomed to – or aspire to,” said Ellen.

Nexus Insurance Brokers suggests that UAE expats may consider saving into a financial product with the flexibility to increase the amount they save as required, as well as allowing them to continue saving into the financial product in the event that they leave the country.

Nexus Insurance Brokers also believes that it is important to regularly review the level of risk associated with each financial product, as individual attitudes and circumstances can change over time. High risk at a young age can yield high returns, but it may be more prudent to shift to safer options as old age sets in.

“Consider all your options and then consider them again,” added Ellen. “Speak to an independent financial advisor to determine your comfort levels. There are a huge array of regulated savings plans to choose from in the UAE and it is important to be completely aligned with your individual circumstances,” he concluded.

Nexus Insurance Brokers is the largest and one of the most respected independent financial firms of its kind in the GCC region. Following more than five years of consistent double-digit growth, the company recently announced at its AGM that it expects 2013 revenue to jump by an average of 25% across its core businesses – life, investment, pension, and general insurance.

Earlier this year, Nexus announced plans to enter the competitive and highly-regulated Saudi and Kuwaiti markets. The company currently operates offices in Abu Dhabi, Beirut, Doha, Dubai, and Manama.

In October, Nexus Insurance Brokers scooped the coveted Personal Lines Insurance Broker of the Year title at the 2012 Insurex Awards. The company has now won the award four times in the past six years.

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Wednesday, November 28- 2012 @ 11:19 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.

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