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Most UAE employees prioritize financial security over spending in 2025
The survey reveals a growing savings trend, with 68% of employees planning to save their bonus.
While three-quarters of UAE employees expect a bonus in 2025, a recent survey shows a growing shift toward saving over discretionary spending.
The YouGov survey, commissioned by Zurich International Life Middle East, highlights a rising focus on structured financial planning, driven by increasing living costs and long-term financial concerns.
Traditionally, annual bonuses played a major role in financial decisions. However, 68% of employees now plan to save some or most of their bonus. Younger generations are leading this shift, with 31% of Gen Z employees (18-24) intending to save their entire bonus.
“The study shows a significant shift in how UAE employees approach financial planning, with more individuals prioritizing future investments, children’s education, and retirement savings,” said Ashika Tailor, Head of Business Development – Employee Benefits, Middle East at Zurich International Life.
Rising living costs are a key driver of this shift, with 55% of employees reporting a significant impact on their financial choices. While 60% still plan to allocate part of their bonus to travel and leisure, 27% are prioritizing skill-building, signaling a balanced approach between short-term lifestyle goals and long-term financial security.
Despite the growing emphasis on saving, financial literacy remains a challenge. While 55% have sought financial advice—up from 39% in 2024—many regret not starting their savings journey earlier. The survey highlights the value of structured guidance, with retirement readiness confidence soaring to 86% among those who have consulted financial professionals.
Confidence in financial security varies by age, with younger individuals feeling the most assured, while older employees express growing concerns, highlighting the need for early financial planning. Although 67% of employees remain optimistic about the UAE’s economic future, retirement remains a pressing issue, with 77% estimating they will need up to AED 10 million for a comfortable retirement.
The study also highlights a potential over-reliance on employer benefits, as 65% believe workplace savings schemes or gratuity will be sufficient—raising questions about long-term financial preparedness.
Currently, only 17% of respondents have access to workplace savings plans, while just 18% benefit from government-backed retirement schemes, highlighting a gap in long-term financial security.
The survey suggests that expanding workplace savings plans could enhance employee benefits, promote financial stability, and support talent retention. Clear communication on end-of-service benefits and improved financial education are also essential to empower employees to make informed long-term decisions.
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