(MENAFN- Khaleej Times) New independent research commissioned by HSBC reveals that traditional inheritance may be dying out as people increasingly have to redistribute their savings during their lifetimes.
Dubai — Inheritance may seem like the norm as more than four in five (84 per cent) working-age people in the UAE and about three-quarters (74 per cent) globally expect to leave their savings for their children.
However new independent research commissioned by HSBC reveals that traditional inheritance may be dying out as people increasingly have to redistribute their savings during their lifetimes. The findings were based on a survey conducted across 15 markets with 16000 respondents of which more than 1000 were from the UAE.
HSBC’s “Future of Retirement 2015: Choices for later life” reveals the growing existence of this concept of “living inheritance” as many working age people in the UAE are finding it difficult to save the wealth they accumulate throughout their careers to pass on to future generations.
This is a growing concern here as while more than half of pre-retirees in the UAE say that they expect to receive an inheritance in the future less than two in five state they have actually received one — highlighting a gap between hopes and reality.
With nearly seven out of 10 people in the UAE (69 per cent) saying that they believe it is better to spend some money and save some to pass on the next generation and a further 15 per cent stating that it is better to leave as much as possible for their children inheritance is clearly an important priority for the vast majority in the country.
However while some working age people have more of a say in deciding what to do with their money a majority are facing difficult financial choices and are increasingly finding it difficult to save.
In particular financial obligations to their dependents weigh on people’s ability to not only save for their own retirement but also to leave behind an inheritance for their loved ones. This sentiment is particularly acute in the UAE as nearly 92 per cent of pre-retirees in the country say they provide regular financial support to at least one other person which is among the highest across the world and far exceeds global average of 73 per cent.
Other countries like Indonesia (96 per cent) Malaysia (92 per cent) and India (90 per cent) have a high percentage of people who share this view while those in western countries like the UK (57 per cent) Australia (61 per cent) and the US (62 per cent) do not associate with this sentiment as much.
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