London, UK (PRWEB UK) 24 February 2013
Pryce Warner International Group – The Future of Retirement: A new Reality, a study conducted by HSBC has revealed with stark clarity how unprepared expats in the UAE are for retirement.
According to UAE based newspaper, Emirates 24/7, 89% of expats were unable to describe their existing savings plans as ‘more than adequate’ and over 50% said they feared financial hardship in their retirement years.
The survey featured 15 000 individuals in 15 markets, of which over 1000 were based in the UAE. Of these 46% said that they were struggling to save enough for retirement due to the exorbitant cost of living in the UAE.
Another cited reason for the lack of adequate pension coverage was the scarcity of schemes available for expats, and what few there are being useless for expat’s actual needs.
The UAE was also revealed to be the joint highest globally for residents putting off saving for retirement, with the average age at which people started saving being 30. The explanation given for this was that retirement is “too far away to worry about”.
93% of people also stated that they did not plan their savings with a financial advisor, which perhaps explains the relaxed attitude and inadequate savings they currently have.
David Retikin, Director of Operations at Pryce Warner International Group, commented: “It is never too early to start saving for retirement, and for people to think ‘it is too far away to worry about’ is a worryingly callous attitude towards retirement planning. As this study reveals, the fruits of this attitude are critically unprepared savings and deep concerns over one’s ability to have a financially stable retirement. Expats are in particular need of financial advice when planning their pensions as local schemes are generally very poor and any savings they make can be disrupted by frequent moves between countries. Expats are mobile people and need mobile pensions to ensure that there pension pots enjoy uninterrupted growth and flexibility.”