Retirement planning a concern for UAE expats

12 February 2013

Over half (56 per cent) of UAE employees are worried about their future financial state amidst concerns over their ability to retire with a sufficient income, according to research from global professional services firm, Towers Watson.

 The Global Workforce Study (GWS), a survey of 32,000 employees worldwide including over 1,000 UAE workers, also found that over half (53 per cent) of UAE workers claim that retirement security has become a higher priority for them over the past three years, rising to over two-thirds (67 per cent) for workers aged over 40.

According to Towers Watson's GWS, UAE workers are beginning to question the feasibility of their expected retirement age with a third (33 per cent) now anticipating they will retire later than they previously thought and just 16 per cent believing they will retire earlier than expected.

Furthermore, just over a third (37 per cent) are confident they will have sufficient financial resources to live comfortably for 15 years into their retirement and only a third (33 per cent) believe this is the case for 25 years of retirement.

The study also found that less than half (46 per cent) of employees feel comfortable in managing future retirement income needs, with five out of ten employees indicating they would be willing to pay a higher amount from their pay each month to ensure a guaranteed retirement benefit.

Billy Turriff, business leader for Data, Surveys and Technology, at Towers Watson Middle East, said, "In the current business environment, few employees appear confident of being able to retire comfortably from full-time employment. A majority of the employees report a lack of foresight and planning in their pensions and savings, causing them to postpone their eventual retirement date. This has a knock-on effect throughout the economy, potentially shrinking career opportunities for the next generation of employees and job seekers.

"However, with more employees seriously looking at their retirement planning options, employers can take advantage of this more engaged audience by highlighting the value of the retirement benefits they provide."

 Source: CPI Financial 

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