In this series:
■ Survey finds many UAE residents failing to save for retirement
■ Survey finds 94 per cent of UAE residents have financial worries
■ Experts say people must resist urge to splurge
■ Rent is UAE residents' biggest expense, survey finds
■ Some UAE residents own eight credit cards, survey finds
■ UAE residents long for financial security
ABU DHABI // A quarter of residents save no money, more than two thirds have made no plans for retirement and some juggle up to eight credit cards.
But despite these statistics, half say their most important goal is to be financially secure between the ages of 40 and 60.
These bleak omens were revealed in a survey of 1,104 Emiratis and expatriates on their personal finances, conducted by YouGov for The National.
It found that apart from the 25 per cent who save nothing, another 50 per cent of residents save no more than a fifth of their salaries each month.
“This is extremely worrying,” said Jessica Cook, a financial adviser with AES International in Dubai.
“The earlier you start saving for retirement the easier it will be to afford, given the number of financial obligations that tend to be incurred later in your life.
“We are living longer and active retirement costs money.”
Tax-free salaries and better lifestyles are among the main reasons people come to the UAE to work, and yet too few put enough money aside for the future, the survey shows.
“Many people came to the UAE to make a difference to their financial future, but then forget that, as they get used to a standard of living that is far in excess of the one they would have at home,” said Tim Denton, another adviser.
“When I ask would you employ a maid, buy a brand-new luxury car and eat regularly at five-star hotels at home, the answer is no.
“Yet they do this in the UAE and fail to make savings for the future.”
That failure does not come without costs, including to health. Only 6 per cent say they have no financial worries. But of those who do, 31 per cent experience depression and 35 per cent feel anxiety.
Advisers say credit is no way out as the interest can easily amass and compound the problem.
A fifth of respondents say they have applied for credit cards to cover major expenses such as rent, home deposit or cars.
“Credit cards are good for spending or receiving air miles or other rewards, but should not be used for long-term cashflow management,” said adviser Chris Ferguson.
Professionals say the most crucial advice is to plan for retirement, put money aside for emergencies and save while you can.
About this series:
A study into the saving habits of Emiratis and expatriates found a quarter of all employed residents do not save any of their monthly wage. And 69 per cent have not started planning for retirement. The survey found that only 6 per cent of respondents do not have any financial worries. The majority of people’s wages are spent on rent, followed by groceries and household items leaving some residents dependent on multiple credit cards and longing for financial security. Financial experts advise residents to resist overspending to avoid a struggle when faced with unexpected expenses.
jbell@thenational.ae