UAE Residents Shift Focus To Saving Over Spending But Are They Prepared For The Future?

There is a shift happening in the way UAE residents think about money—and it's not necessarily about how much they have, but how they're spending it. A new YouGov survey on behalf of Zurich International Life Limited in the UAE paints a picture of an employee more financially secure than ever before—but also more risk-averse, more planned, and more concerned with long-term realities.

With 75% of employees expecting a bonus in 2025, optimism is in full bloom. But the shocker is this: saving, not spending, is in the limelight. This is not just financial optimism; this is financial maturity.

The New Money Mindset

Those were the days of yore when a bonus equated to unrestrained shopping frenzies or surprise vacations in the Maldives. Those are gone now. The study suggests that 68% of UAE employees plan to save some portion of their bonus, a move towards methodical financial planning.

- 55% are investing their savings, with long-term wealth and not short-term profits in mind.
- 46% are setting aside rainy-day funds, an acknowledgement that economic security is never guaranteed.
- 38% are investing it in their children's education because private school and university tuition isn't going down.

And, lastly, a new surprise priority appears: 27% will invest their bonus in upskilling, specifically in AI and future-proof roles—a proof that investing in oneself is the new financial security.

The research indicates a huge change in the way UAE workers are preparing for money, with an increasing number of people prioritizing future investments, education for their children, and retirement savings," says Ashika Tailor, Head of Business Development - Employee Benefits, Middle East at Zurich International Life.

But if everybody is so financially secure, why is everybody so scared of the future?

The Retirement Illusion

There's an interesting contradiction in the statistics. While 75% of UAE residents are certain they will have enough money for retirement, 77% also estimate that they will need up to AED 10 million to retire comfortably.

But yet, 65% believe their gratuity or company savings will be enough—a mind-boggling difference that shows that most are not doing the math.
"Most workers might not be even consciously aware of the distinction between their gratuity expectations and their individual long-term financial goals," Tailor goes on. "Gratuity is an economic safety net, but not a retirement plan."

This over-reliance on benefits provided by the employer might be a problem in the future, especially since only 17% of respondents now have access to formal workplace savings plans. The moral? Optimism does not necessarily equal preparation.

The Reluctant Money Managers

Shelve the stereotype of Gen Z as present-day impulse spenders. The survey shows they're actually the most conservative savers in the UAE workforce.
- 31% of Gen Z (18-24) plan to save their entire bonus, more than any other age group.
- Millennials (25-34) are next, with 63% saving most or all of their bonus.
- Workers aged over 45 take a more laid-back approach, dividing their savings between saving and discretionary expenditure.

This age difference is a cultural shift. Fiscal prudence is no longer the worry of those approaching middle age—it's becoming an early-career concern.

"Early generations are breaking the way and indicating long-term planning and wealth security is getting into cultural behavior," notes David Denton-Cardew, Zurich International Life Middle East's Head of Propositions.

And despite all this self-discipline, people's financial know-how is still something to be improved. 55% of residents in UAE have now spoken with a money adviser, as compared to 39% previous year—testament that people know they are in need, yet are generally positive about their cash.".

The New UAE Bonus Playbook

Financial confidence in the UAE has never been stronger, but the definition of financial success is evolving. The 2025 bonus season will be not just about how much employees bring home—but how well they spend it.

Some will invest. Some will save. Others will spend—but wisely, on skill development and long-term investments.

But the question is not so much who gets a bonus? It's who will make it last?