Married couples eager to save more
dubai — Starting a family in the UAE can mean a lot of extra expenses, and young couples are quickly realising the benefits of saving early to prepare themselves for such a period in their lives.
National Bonds’ financial health check for H1, 2017 revealed that there has been a 27 per cent surge in married couples eager to save. The results showed that 73 per cent of married couples are saving compared to 46 per cent recorded in the previous survey.
The results of the current National Bonds financial health check also suggested that families with children have improved their savings habits to prepare for emergencies. The proportion of non-savers among this group decreased from 55 per cent in the earlier survey report to 53 per cent currently, again indicating an increased awareness by this segment of the importance of saving for the future.
“The upward trend when it comes to saving is a positive indicator of the increased awareness of the importance of following regular saving plans to meet the daily requirements of individuals and families and ensure financial security for the future at the same time. It is heartening to note that saving has become a regular practice.
“The percentage of married couples that now save has risen to over 25 per cent compared to previous results. We believe these results validate our sustained efforts to enhance financial literacy and instill a culture of saving and financial planning in the community over the past few years,” says Mohammed Qassim Al-Ali, CEO of National Bonds. Another interesting finding was the increase in the number of people saving for retirement in the 41 – 55 age group, with 62 per cent among UAE residents and 43 per cent among UAE nationals participating in the survey.
A similar survey by HSBC showed a similar sentiment among millennials, as they recognise that they will be facing a more challenging economic climate than other generations. Around half of the millennials in the UAE agree they will live much longer and will need to support themselves for longer than previous generations. In fact, this generation is expected to cover for an average of 16 years of retirement, compared to 15 years for Generation X.
At 67 per cent, millennials are amongst the most concerned about running out of money affecting their retirement. And as such, they are ready to take bold measures to counter these concerns; with 71 per cent prepared to cut back on their present expenses to save, compared to 68 per cent of Generation X and 66 per cent of Baby Boomers.
Matthew Colebrook, head of retail banking and wealth management, Mena and Turkey, HSBC Bank Middle East, said: “Despite apparent awareness of the tough macroeconomic conditions their generation is facing globally, millennials do not appear to have grasped the full implications of their retirement. It is encouraging to see that millennials are starting
The percentage of married couples that now save has risen to over 25 per cent compared to previous results Mohammed Qassim Al Ali, CEO of National Bonds
It is encouraging to see that millennials are starting to build an awareness towards financial planning and that the average age to start saving is 28 Matthew Colebrook, Head of retail banking and wealth management, Mena and Turkey, HSBC Bank Middle East
to build an awareness towards financial planning and that the average age to start saving is 28.”
— rohma@khaleejtimes.com