National Bonds Announces Latest Results of Financial Health Check Survey

• 52% of Respondents Save for Retirement
• 44% Make Payments towards Loans 

Dubai-UAE: 03 May, 2015 - National Bonds Corporation (National Bonds), the leading sharia-compliant savings and investments company in the UAE, has announced the latest results of its ongoing financial health check survey that is open to customers online. Findings indicate that only 36% of the respondents save for retirement, while 28% save regularly to buy a home and 24% save for their children’s education.

Designed by financial advisers at National Bonds, the financial health check was launched in February 2014 as an online tool to help customers assess their financial status and take corrective action towards achieving a more resilient financial future. To date, the survey has received responses from more than 1,000 customers across cultures and nationalities. On an average, a majority of the respondents (64%) fall within the 26-40 year age group, 26% are from the 41 to 55 age category and 6% from the 18-25 years age group. 

In additional findings from the survey, 44% of the respondents said they make monthly payments towards personal loans. Furthermore, 38% of respondents said they pay off debts towards credit cards, while 18% pay out home mortgages.   

The results also reveal that 82% of respondents in the 18 - 25 year age group save regularly, while 18% admit to not having a specific savings plan. Although 51% of the 41-55 year age group said they save for retirement,, 45% of the respondents from this age group admitted to making payments towards personal loans, while 43% make monthly payments towards credit cards.

The financial health check results also indicate that 60% of respondents in the 26-40 year age group keep a regular record of their expenses, while 40% do not. In the same age category, 73% of respondents said they regularly pay for credit card expenses. The survey also found that 29% of respondents have a written will of inheritance.

In yet another interesting outcome, 81% of respondents said they do not have a financial agent or planner to help them manage their finance and money issues. Additionally, 78% of respondents admitted to not having takaful insurance.

Commenting on the results, Mohammed Qasim Al-Ali, CEO, National Bonds, said: “At National Bonds, it is our key priority to increase financial literacy in the community, and drive a habit of regular savings. Through the financial health check, we are looking to offer our customers an easy and simple method to evaluate their financial performance and assess their monetary status. We believe that better awareness of strengths and weaknesses will inspire customers to adopt a conscious habit of saving for achieving sound financial health.”

In a bid to encourage more customers to monitor their financial health on a regular basis and carefully plan their finances, National Bonds selected five lucky respondents and rewarded them with wellness packages worth AED4,000.

Drawing parallels between the financial health check and the annual medical examination that is taken to ensure one is fit and healthy, Al-Ali noted that National Bonds offers a number of remedies for challenges that threaten the financial health of our customers.

He added: “The latest results of the financial health check are encouraging - it is particularly heartening to note that 82% of the younger 18-25 year age group save regularly. We encourage young people to build a secure financial future that will enable them to retire early with absolute peace of mind. Financial knowledge and awareness of the importance of saving helps establish a stronger society. The check clearly indicates that respondents in the senior age category are under greater pressure due to repayment of loans and credit card expenses. A considerable share of their budget is dedicated to the repayment, reducing their ability to save for retirement.”

As part of its continuing awareness campaigns on the importance of regular saving and investment, National Bonds offers programs and savings plans that provide savers with easy and more accessible methods for saving. More recently, National Bonds has introduced the instant saving service Sukuk Express that allows customers to deposit up to AED20,000 daily in their National Bonds accounts through more than 1,000 self-service machines across the length and breadth of the UAE.