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International Investing Habits: Financial Planning Trends

For the vast majority of people around the world, a comfortable retirement is a far cry from the reality many of us face. Financial planning, especially for retirement, isn’t at the forefront of everyone’s mind. According to a poll of 400 UAE residents, 69% of respondents are lacking awareness of financial planning, particularly for later life.

Similarly, in a survey by Fidelity International for Hong Kong residents in the post-80s generation, they found that while 94% of respondents have some form of savings, it’s mostly for short-term goals with no objective of saving for retirement. Nearly half of the post-80s generation would rather save for travel or more expensive personal items.

The thing this, there’s never been a better time to start investing for your future. For overseas investors looking to invest abroad, regions such as the UK are forecasting incredible opportunities to create a passive income stream for retirement.

For some of you, you may already be considering your future, paying into a pension or a savings pot for later life. However, the Fidelity survey shows that typically, only 15% of the money earned is saved for investment while the rest is spent on the short-term. This lack of preparation mirrors our own research into the UK market, which looked at 1,200 UK respondents and found that a huge 41.6% have zero investments whatsoever.

Similarly, long-term financial planning trends amongst UAE residents is relatively weak. More than a third of UAE residents (37%) surveyed by HSBC have never even spoken about their potential long-term financial security with anyone – including financial experts.

“Hong Kong’s post-80s generation appear to be pretty optimistic about their chances of achieving their life goals, with 77% feeling they are somewhat likely to own a property and 72% expecting a stable retirement life…

“Yet their expectations are out of line with their priorities, and they make little effort to achieve their objectives. All income bands need to pay more serious attention to the trade-offs between short-term enjoyment and long-term returns, and start to think more clearly and honestly about their priorities”

Although our research showed that nearly 18.8% of women and 23.7% of men are utilising savings accounts, the question for people around the globe paying into pensions or savings is, will it be enough, soon enough?

Saving for retirement is very different from living a comfortable retirement. For people that want to live well during their retirement, their future is in their own hands. Creating an investment portfolio is no longer an alternative for a comfortable retirement – it’s a must.

 

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