Early retirement looks off the cards for many investors in the UAE, according to research by Friends Provident International (FPI).
The life insurer surveyed over 1,000 people in the UAE and found 44% expect to retire by the time they are 55 years old and 63% before they reach 60.
But 45% of respondents said they haven’t even started saving for retirement yet. Further, for those individuals who do have some savings, 53% said these are in the form of general bank deposits.
There is also an expectation among many respondents that they won’t need to plan very far ahead. Nearly 40% said they will start saving for their later life either 10 years or less before they reach retirement.
Some 27% believed they can retire on less than $2,500 (£1,921, €2,307) a month, while a similar percentage of people believe that $5,000 will be enough. Another 15% acknowledged that they don’t know or are unsure of the amount required to retire.
Stuart Shilcock, head of sales Middle East at FPI, said: “There appears to be a strong disconnect between the aspirations of many individuals in this survey in the UAE to retire early and the reality of how much they will need to save for retirement. It is essential for everyone to prepare early when thinking about retirement.”