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22 June 2024

UAE's rich reveal their top three resolutions for 2016

By Shuchita Kapur

It's that time of the year again when we stop to reassess our finances and think and plan to make the coming year a much better one when it comes to money.

Just as any average resident, the ultra-rich also plan their year ahead and make financial resolutions to give themselves what we can call a better financial shape-up.

A new survey carried by deVere Group, an independent financial advisory organisations, reveals the top three financial resolutions of the rich across the world including the UAE and the findings show that their priorities are not very different from an average salaried individual’s.

The survey is based on the inputs of 655 high net worth individuals from the UAE, Qatar, Hong Kong, the UK, the US, South Africa, Spain, Germany and Switzerland.

The survey shows that high net worth individuals’ top three financial resolutions for 2016 are

1) To build funds for their retirement

2) To more regularly review their investment portfolios

3) To save more to leave for their loved ones in their wills.

The findings are based on an international survey in the last two months of 2015 in which it was found that 41 per cent of those polled said their priority for the year ahead was to save more for their retirement.

Twenty seven per cent cited more regular reviews of their investments as their primary objective, whilst 23 per cent answered that their main goal was to build funds to leave as a legacy for their beneficiaries.  9 per cent responded with a variety of different resolutions.

“Against a concerning backdrop of dangerously large company pension deficits, low interest rates, changes to pension tax relief thresholds, the demographic pressures of an ageing population leading to the scrapping or reduction of some age-related benefits and public services, and soaring medical and care costs, amongst other factors, even the richest people in society are now worried about not having accumulated enough money to last throughout their retirement,” says Nigel Green, deVere CEO and founder.

“If this section of society is concerned about such matters, it should be a red-flag to middle and lower income earners to ensure they are also saving enough and, crucially, as efficiently as possible, for their mature years.

“Life expectancy is a key factor here too.As we are living longer the funds we generate need to last longer than ever. Bearing all this in mind, it is sensible that the number one resolution is to save more for retirement in the year ahead,” he added.

The New Year is also likely to be a difficult one for the global economy as it will certainly be shaped by market volatility. Key drivers of this volatility include the fall of oil prices, China’s slowdown, the economic plight of emerging economies such as Brazil, the US presidential elections, and Greece’s trap of debt and austerity, the survey added.

“With so much turbulence on the horizon, it’s prudent to increase reviews, and where necessary, rebalance investment portfolios to ensure that they always remain ‘on track’ to reach their financial goals by mitigating the risks and taking advantage of the inevitable upsides,” explained Green.