Four In Five Expats In The UAE Not Saving Enough

Over 80% of Expats in the UAE are not setting enough money aside for retirement according to financial advisors.

London, UK (Pryce Warner International) July 20th, 2011 – Financial advisors have claimed that out of the hundreds of UAE residents they meet only a small minority are doing enough to secure their retirement.

It was also found that many Expats are overly reliant on their property portfolios. While this is often a relatively simple way to invest in the future, it can also be risky to only invest in one area.

Despite the UAE having no income tax it was found that Expats’ savings level’s are exceptionally low. The principal reasons for not saving were the increased cost of living and outstanding debts or loans.

Advisors warned that many people are now facing unsecured debt in the form of credit cards that were taken out during the boom of the past ten years. Now that this has abated people are left with debts and are becoming more cautious with their finances.

Though the UAE was also hit by the global financial crises, analysts are showing that the property market is stabilising and that this is leaving some Expats with more cash in their wallets.

A survey undertaken last June showed that many were concerned over the state of their savings and that 46% were saving less than they had planned while 71% admitted that they do not save regularly.

David Harra, a Senior Market & Investment Analyst with Pryce Warner International, a financial services provider for Expats, commented: “The figures that 80% of Expats in the UAE are not saving enough are often a common problem among Expats. When moving overseas it can often be difficult to accurately estimate the long term cost, ensure you save enough and that your pension plan is stays abreast of inflation. It is also a common mistake that people only invest in one area, in this case property. The key to secure investing is diversification across not only different asset classes and market sectors but currencies as well. Any Expats looking to ensure a healthy retirement should consider QROPS overseas pensions as they are designed around diversification and can therefore can ensure a more reliable and secure income during retirement. Expats should also consult financial advisors when they first move abroad to fully plan their financial needs and devise a savings strategy that they will be able to adhere to over time.”

Pryce Warner International Group provide International Asset & Investment Management, Independent Financial Advice & QROPS Overseas Pensions.

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By: Aneil Fatania
Financial Editor
Pryce Warner International Group
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