UAE Residents Struggle with Savings Concerns
Not Saving Enough in UAE? You're Not Alone!
A significant portion of people living in the United Arab Emirates (UAE) face one of their biggest financial concerns: lack of savings. According to a recent survey by International Financial Group Limited (IFGL), nearly half of the local residents worry about not saving enough, causing many sleepless nights. Conducted between October and December 2024, with over 1,000 respondents, the study revealed that savings concerns represent a more pressing issue than paying rent or health insurance costs.
Biggest Financial Worries Among UAE Residents
The IFGL survey indicates that 50% of respondents perceive savings as their greatest financial challenge, while rent payment concerns affect 49% of them. Health insurance costs rank third at 39%, followed by retirement savings concerns at 32%.
Interestingly, expenses like a child's wedding (9%), summer vacations (16%), or mortgage payments (19%) cause significantly less anxiety. This suggests that short-term financial obligations are less stressful to residents compared to long-term financial security issues.
Who Worries More About Savings?
The survey also provided intriguing demographic insights:
1. Women worry more about savings and retirement than men, possibly indicating their greater emphasis on security, especially in long-term financial planning.
2. Higher-income individuals (above 25,000 dirhams) feel more pressured about retirement savings than lower-income earners (below 10,000 dirhams). This could relate to concerns about maintaining a lifestyle and ensuring future living standards.
3. Western and Arab expats prioritize savings and retirement more than Emirati or Asian respondents. Emirati residents focus more on future educational costs for their children.
4. Singles experience more stress related to savings and retirement than married people, especially those with families. This may stem from the pressure of solely securing their financial future.
5. The 18-24 age group worries significantly more about savings than older individuals, yet they have more time for financial planning. This could encourage optimism as they can take steps towards financial security with a more conscious approach.
What Can Help Achieve Financial Security?
According to the IFGL's Middle East leader, financial planning and expert advice are crucial for those who wish for a peaceful night's sleep. The survey highlighted common problems faced by UAE residents, offering solutions accessible for all age groups to develop effective savings strategies.
IFGL, currently managing $25 billion in assets, offers various savings and investment solutions for expats and local residents, helping them achieve their financial goals.
Summary
For UAE residents, savings and retirement planning remain among the greatest financial challenges. Despite demographic differences, the shared goal is securing financial stability. Effective financial planning and expert assistance significantly contribute to a more secure outlook on the future.
