RIYADH: More than half of urban Saudis between the ages of 30 and 70 want to see the introduction of either compulsory or voluntary retirement savings schemes to supplement the current state pension provision, according to a new global HSBC survey entitled “The Future of Retirement.”
“It is clear that people here are attempting to become better informed about their finances. The financial services industry has strategies in place to raise the standards of financial education long term, but attention needs to be paid to advising people in the short and medium-term,” said Husam Malaikah, head of commercial development at SABB.
Among Saudi respondents to the survey, the most popular way to help people fund their retirement is the compulsory approach. Over 30 percent favored compulsory savings through employee pension schemes, a much higher proportion than in many of the other 14 countries and regions covered by the survey and almost twice the overall average.
A further 23 percent supported enhancing the state pension through voluntary savings schemes. Only 10 percent believe the state alone should remain responsible for providing for retirement.
According to the survey, 32 percent compared with 12 percent Saudis today believe saving for their children is more important than saving for their own retirement. Only 16 percent, however, currently feel “very well” prepared for retirement while 45 percent feel either “fairly” or “very” unprepared.
