Poll re­veals wor­ry­ing fig­ures about lack of re­tire­ment plan­ning in UAE

7 Days in Dubai - - BUSINESS - @spluck­rose si­mon@7days.ae

Nearly two-thirds of read­ers who re­sponded to a 7DAYS poll said they are not putting money aside for re­tire­ment.

Last week, we asked the ques­tion: “Are you sav­ing for your re­tire­ment?”

More than 700 peo­ple re­sponded, with 61 per cent an­swer­ing no.

Among the rea­sons given was that peo­ple felt salaries were not keep­ing up with the cost of liv­ing in the UAE.

One reader said: “Be­tween school fees, rent and food, there just isn’t enough left at the end of the month to even think about sav­ing for the fu­ture.”

An­other wrote on Face­book: “Salaries now aren’t as good as they used to be.”

How­ever, An­drew Bates, Head of Pri­vate Bank­ing – Mid­dle East at Nedbank Pri­vate Wealth, warned that se­cur­ing your By Si­mon Pluck­rose fu­ture is not some­thing to be put off for an­other day. He said: “If you don’t save for your re­tire­ment then it is very rare that some­one else will be do­ing this for you, com­pany pen­sions and state pro­vi­sions aren’t gen­er­ally likely to meet ex­pen­di­ture needs in re­tire­ment. “And due to med­i­cal sci­ence, peo­ple are now liv­ing much longer than they used too, it would seem a real shame to work hard all of your work­ing life and then be un­able to en­joy your re­tire­ment.” And Bates said the is­sue is even more press­ing for ex­pats.

He said: “Of­ten com­pany pen­sions as we know them will not be avail­able to in­ter­na­tion­ally mo­bile ex­pa­tri­ates, these are ei­ther re­placed with things such as end of ser­vice gra­tu­ity in the GCC and the UAE or re­moved al­to­gether for peo­ple in cer­tain ge­ogra­phies.”

And, Bates added, it is never too late to start sav­ing.

How­ever, he added: “It’s al­ways bet­ter to start sooner rather than later, the later you leave it, the more you will need to com­mit in the later years to make a mean­ing­ful dif­fer­ence.

“And al­ways keep an eye on the charges as this will im­pact the over­all out­come.”

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