Report finds 69 per cent of residents clueless about financial planning
UAE investment company, National Bonds has launched a nationwide campaign to help local residents save after a new study revealed a lack of awareness in financial planning.
Launched from November 1 under the hashtag #SavingsExcuse campaign the drive aims to help residents with a tax-free disposable income to own up to destructive spending habits.
A recent study by National Bonds found that 69 per cent of respondents in the UAE were unsure of the steps needed to achieve their financial goals.
The sample was made up of 53 per cent Arab demographic, 57 per cent Asian, and 64 per cent Western expats.
Of those surveyed 53 per cent were most interested in receiving advice relating to retirement planning, while UAE nationals were more concerned with advice pertaining to financial health 48 per cent followed closely by retirement planning 41 per cent.
The short-term financial considerations such as cost of living and budgeting for weddings and travel often eclipse longer term savings goals, said Mohammed Qasim Al Ali, CEO of National Bonds. Yet the importance of saving for the future cannot be under-estimated, he said.
“It is not surprising to see retirement planning is a key concern for UAE residents. While people save for a multitude of reasons including weddings and travel, retirement planning is unavoidable.
“This is why this campaign is so important, it is absolutely vital people understand what it is that is preventing them from saving so they can overcome it. The next step is to create a savings goal and put a plan in place to achieve it,” Al Ali concluded.
The initiative is designed to support the Government’s ambition to increase financial literacy and encourage savings plans, in an bid to secure the financial futures of individuals and their families, Ali added.
“Most people know they should be saving; the hard part is knowing where to start.”
“The Savings Excuse campaign will help people identify what exactly it is that prevents them from putting money aside and help them realize, even the smallest change in spending habits can help achieve financial stability in the long term”, he added.