More than two thirds (67 per cent) of residents in the UAE are failing to plan for retirement, according to research released today by Zurich International Life.
In a survey conducted by YouGov, it found that only 33 per cent of UAE residents have a formal retirement savings plan, other than the end-of-service gratuity.
Zurich cautions that the findings are concerning as lack of financial preparation will have significant impact on future income for retirement.
“It would appear that too many UAE residents are either wrongly assuming that the end-of-service gratuity or their property assets will provide enough funds to finance their retirements or, worse still, are ignoring the need to safeguard their financial future,” says Jawed Barna, CEO at Zurich International Life Middle East and Africa.
According to the Zurich survey, even older respondents were not preparing for their retirement – 60 per cent of respondents aged more than 40 said they did not have a retirement plan or pension in place.
“It is particularly concerning that 60 per cent of UAE residents aged more than 40 do not have a retirement plan. People should not wait until later in life to start planning for retirement,” adds Barna. “The best financial advice I have ever received was to start saving for my retirement in my 20s. It’s the best way to build up a bigger retirement fund for later in life, as you add more contributions over your lifetime and they have longer to grow. Even if you can only afford a small amount, it helps to form a healthy savings habit.”