Less than half (47%) of Bahraini residents polled in a recent survey have taken steps to secure their long-term future, with just 10% investing in a retirement fund in the last 12 months, according to a report released by Zurich International Life and Citi.
The study indicated that Bahrain’s local and expat population may be too focused on achieving relatively short-term financial goals and neglecting long-term planning.
In addition, 68% of the 233 locals and expats surveyed in Bahrain said they are optimistic about the outlook for the economy over the next 12 months. Respondents also feel secure about their individual circumstances, with 83% confident that the state of their personal finances will be good or excellent over the coming year.
Rather than spending their hard earned money, 66% of respondents intend to save or invest any spare cash, with the education of their children and starting a business the top financial priorities for 34% of residents. The next highest financial priorities are investing in property (32%), a child’s marriage (23%), and starting a family (14%).
Of concern, however, was the lack of long-term retirement planning among people residing in Bahrain, with only 8% naming this as their top financial priority. Moreover, only 47% of respondents said they have taken any steps to secure their long-term future, with just 10% investing in a retirement fund in the last 12 months.
Mr Andrew Dawson, Bahrain General Manager at Zurich International Life, said: “It is great to see such a strong savings culture embedded in Bahrain, with residents prioritising investment in the important things in life, such as their children’s education and their homes. Yet, confidence in the strength in the economy could be leading some residents to focus on immediate priorities at the expense of their retirement planning. In fact, supported by the strong economy, now is the ideal time for residents in Bahrain to refocus on their long-term financial goals.”
The study suggested one reason expats in particular may not be planning for their retirement is a misconception about portability, with 20% of those who do not intend to subscribe any pension or life insurance product wrongly believing it will be of no use when they leave the country. Furthermore, 36% believe they have sufficient savings and investments in place to support their later years, while 34% admit that they do not fully understand retirement products.