Savings and retirement attitudes survey. Middle East and North Africa

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1 Savings and retirement attitudes survey Middle East and North Africa

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3 Savings and retirement attitudes survey Middle East and North Africa Contents Executive summary 4 Survey highlights 4 Overview of public and private pensions in the Middle East and North Africa 5 Financial situation 7 Retirement 11 Benefits preferences 15 Conclusion 17 About the survey 18 Savings and retirement attitudes survey Middle East and North Africa 3

4 Executive summary The emerging and frontier markets of the Middle East and North Africa (MENA) are seen by many as a land of opportunity. Countries in the region weathered the financial storm of the recession, and the Arab Spring that has cast a long shadow of uncertainty on the region. Yet working in the region is seen as a lucrative opportunity in the rest of the world, with high salaries, low taxes and the potential to save enough for a lifetime. However, are these true opportunities or false misconceptions that have flourished due to great oil wealth in some parts of the region that people elsewhere associate with the region as a whole? As part of its global savings and retirement attitudes survey research, Towers Watson commissioned a survey of employees in the MENA region. The survey findings examine what the concerns of employees in the region are, as well as identify their saving behaviour, preferences in relation to employment benefits, and readiness for retirement. Survey highlights There is a low level of saving in the region, defying the myth that employees save a large proportion of their income. Savings rates in the Middle East are considerably low when compared to the emerging markets of India and China. A majority of respondents highlight housing as a major concern; this is also reflected in the choice of savings vehicles, where land and property is the preferred vehicle for saving by a majority of respondents. With global economic uncertainty in mind, it is unsurprising to find that a significant percentage of employees cite precautionary savings as a motivation to save. There is uncertainty among many individuals about their plans for retirement and widespread concern about whether current standards of living can be preserved in retirement. This is reflected by the number of respondents that expect to work later in life in order to maintain current standards of living in retirement. Despite these concerns for retirement, the survey finds that day to day issues rank higher than retirement as a driver for saving. When comparing Gulf Cooperation Council (GCC) expatriates and nationals, the survey highlights that saving for retirement is more important to expatriates than to nationals. Despite concerns for the sustainability of public pensions in the region, government pensions and end-of-service benefits are cited as the top two sources of retirement income. In terms of benefits preferences, we see that expatriates have a higher preference for larger bonuses and pay increases, and better health coverage to more retirement income when compared to nationals. 4 towerswatson.com

5 Overview of public and private pensions in the Middle East and North Africa Public pension reserves Public pension schemes are the primary source of retirement income in the Middle East and North Africa (MENA) region. Whereas private pensions do not seem to be as prevalent, they are either in their nascent stages or completely absent. Public pensions in the region use Pay as You Go (PAYG) as their dominant financing mechanism. Only Egypt and Morocco seem to have pre-funded schemes that are invested in public bonds. The long-term development of public pensions is determined by: The extent to which they reach maturity The benefits they offer The return on investments According to projections made by the World Bank, most public reserves will be depleted if changes and reforms to the current schemes are not implemented. The depletion of public reserves can be attributed to an aging population, inconsistent system design and poor management. In terms of design, these public funds have permissive early retirement rules and high replacement rates, as well as high implicit rates of return on the contributions (see Figure 01). These design issues not only make these funds unsustainable, but also pose an obstacle to the development of private pensions. Investment processes are neither defined nor disclosed, and information to fund members on portfolio composition is treated as confidential. Many of these issues can be accounted for by the inadequacy of financial institutions, ineffective governance of pension funds, interruptions in defining investment policy and absence of professional portfolio management, which results in asset allocations that are inconsistent with asset-liability management (ALM) principles. Further, best practice is in favour of the independence of pension fund management from the state but this is rarely the case in MENA. Figure 01. Gross replacement rates by levels of earnings and region Level of earnings Mean Minimum Maximum and region Average earnings MENA OECD ECA LAC Low earnings MENA OECD ECA LAC High earnings MENA OECD ECA LAC Source: Robalino (2005) Savings and retirement attitudes survey Middle East and North Africa 5

6 Private pensions Private pension funds have not been able to progress in the region due to the underdevelopment of financial institutions as well as competition from public schemes that offer benefits well above international benchmarks in generosity (as shown in Figure 01) and that will ultimately prove unsustainable. Egypt is the only state where a funded pillar will be a part of mandatory pensions moving into the future 1. In Jordan, there are also some signs emerging of private occupational plans. The presence of a large expatriate community in the Gulf Cooperation Council (GCC) may lead to the introduction of funded schemes to finance pensions. On the whole, growth in private pensions is still expected to be low and will depend upon reforms to the public pension systems and the development of financial institutions. According to the World Bank 2 the following criteria could play an important role in fostering the development of private pensions: Macroeconomic development and policy Sufficiently sophisticated financial products and institutions Appropriate regulations and supervisory controls Only Morocco, Egypt and Jordan have the basic required level of financial sophistication such as the existence of regulations, accounting, auditing, valuation, payment systems and availability of financial instruments. The insurance authority is in charge of private pension supervision in Egypt and Jordan. Therefore, schemes are subject only to general rules meant for insurance companies and exempt from regulations if the plan administrators do not operate under the insurance industry. Data is limited on private pension funds in the region, however some data exists for both Egypt and Jordan. Figure 02 indicates that in both countries the standard asset-liability portfolio management strategy is not in use. Private pension portfolios in Egypt have a larger share in fixed income and liquid instrument(s). Although Jordan reflects a higher concentration in equities, loans to members and real estate represent an even greater portion of the portfolios. Figure 02. Private pension fund s portfolio composition Asset class Egypt Jordan Fixed income Cash and CDs Real estate Loans Equity Others Source: DeMarco (2011) There are a lot of conditions that need to be met for growth. For instance, many of the assumptions rely upon the ability of the financial sector to absorb an increase in private savings and on costs of intermediation. A small insurance sector, limited long-term savings products offered by insurance companies, and a lack of supervision are also barriers to developing private pensions. It is relevant to mention here that emerging economies have faced significant constraints in the capacity of the financial sector to absorb and intermediate savings from voluntary plans and direct them toward productive investments. As for the GCC, some countries are considering schemes that would provide benefits similar to those of national workers but under a financing mechanism that would ensure that it would not burden public finances. Such a development may lead to an increase in private pension funds in the region. Eventually the development of private pensions will depend on a range of factors such as social preferences, commitment to adopt reforms and an enabling environment. 1 This is apart from the West Bank and Gaza, where a funded though non-operational pension component was introduced legally. 2 See DeMarco (2011). Egypt is the only state where a funded pillar will be a part of mandatory pensions moving into the future. 6 towerswatson.com

7 Financial situation Having considered the general state of pensions in the region, and taking into account the current global economic climate and political instability in the region, it is not surprising that 70% of respondents have reviewed their savings and investments over the past 12 months. Nearly half of respondents (49%) report being satisfied with their financial status, while a third (33%) are unsatisfied. In fact, 46% claim that day-to-day worries hinder their performance at work, while a third claim that retirement concerns keep them from doing their best in the workplace. This suggests that current concerns occupy employees in the region more than retirement issues. These worries appear to be affecting employee engagement in the workplace. In response, employers may consider investigating what these specific worries are and what measures can be put in place to alleviate them, or at least mitigate their impact on employees performance. Despite the various worries occupying employees, 45% are confident that they will be able to afford any healthcare-related expenses that may arise. When it comes to retention, it seems that there is a weak correlation between staying with an employer for the next two years and satisfaction with current financial situation as well as confidence about affording healthcare. More than two-thirds of respondents (68%) agree that they would most likely stay with their current employer for the foreseeable future. However, when we look at responses by age group we find that although still a high proportion of employees would most likely remain with their current employers, older workers seem to be more likely to do so than younger cohorts. Figure 03. Financial situation MENA Age group All Age Age Reviewed savings over past 12 months 70% 69% 72% Continue with employer for minimum of two years 68% 62% 82% Satisfied with where I am today 49% 47% 56% Day-to-day worries hinder performance 46% 47% 37% Confident about affording healthcare 45% 45% 45% Retirement concerns hinder performance 33% 30% 30% Savings and retirement attitudes survey Middle East and North Africa 7

8 Low level of savings Working in MENA is often seen as a lucrative opportunity by people in other parts of the world. It is generally perceived as a region where employees are well-rewarded and save a high proportion of their income. However, the survey highlights that over a quarter (28%) of respondents do not save anything at all, and more than half (55%) save less than 10% of their income: this may be due to the inclusion of Egypt and the Levant in the sample. However, when we look at only the GCC countries we still see this pattern: over a fifth do not save anything, and almost half save less than 10% of their earnings. This contradicts the impression that residents of the GCC save a significant proportion of their income and is surprising given the prolonged global economic uncertainty. When comparing GCC expatriates to GCC nationals we see a similar trend with less than a fifth (19%) of expatriates saving anything at all compared to 28% of GCC nationals. Figure 04. Percentage of income saved 0% Did not save anything at all 1% 9% 10% 19% 20% 29% 30% 39% 40% 49% 50% or more All (MENA) 28% 27% 19% 9% 6% 5% 7% GCC nationals 28% 30% 18% 9% 6% 4% 5% GCC expats 19% 26% 21% 12% 7% 7% 9% Age group Age (GCC) 24% 28% 18% 10% 4% 7% 9% Age (GCC) 17% 19% 25% 14% 9% 9% 6% The average savings rate for the entire respondent profile is 13.88%, whereas in the GCC we find that it increases slightly to 15.37%. GCC expatriates have a savings rate of 16.89% compared to nationals who save just 12.27% of their income 3. Interestingly, we find that the savings rates in the emerging markets of China and India are considerably higher at 27% and 22% respectively 4. When looking at these responses by age group, we see that the results are by and large consistent. The only noteworthy difference is that there is a significantly lower proportion of respondents in the 50+ group that indicate they save less than 10% of their income (36%), compared to the age group (52%). Only 27% of the entire respondent pool save 20% or more of their income. The responses indicate that the older expatriates in the region save the most, where 43% of GCC expatriate respondents aged 50+ indicate that they save 20% or more of their earnings. 3 This is based on the assumption that the 50%+ savings rate averages to 54.5% for that group of respondents. The numbers do not change significantly when this is increased to 60% and 70% of income for that group of respondents. 4 Towers Watson Savings and Retirement Attitudes Survey, China and India. The survey highlights that over a quarter of respondents do not save anything at all. 8 towerswatson.com

9 In addition to these savings rates, we find that the value of savings seems to be rather low. A substantial proportion of respondents (45%) have savings of less than $5,000, with 13% reporting savings between $5,000 and $10,000, and a further 10% reporting savings between $10,000 and $20,000 (that is, 68% of respondents have savings of less than $20,000). The pattern of savings is as expected with older respondents accumulating more than the younger respondents. When we calculate the average savings, we find that it is around the $45,000 mark for the region overall. Savings and investments average $56,000 for expatriates in the GCC, and $43,000 for GCC nationals 5. Motivation and modes of savings Respondents ranked housing needs, precautionary savings and children s education as the top drivers for saving (25%, 19% and 16% respectively). Surprisingly, saving for retirement comes in seventh place with only 7% of respondents indicating it as their top reason to save. This suggests that retirement is not an immediate worry for employees and comes only after more current concerns. As expected, there are generational differences in the motivation to save. Younger cohorts save to get married and acquire a home, whereas older cohorts save to fund their children s education and for retirement. All age groups seem to accumulate savings for a rainy day, as indicated by a great proportion of respondents choosing precautionary savings as a motivation to save. There are also significant differences between nationals and expatriates in the GCC. Nationals seem to save predominantly for housing needs, whereas expatriates save for housing needs and children s education. The responses also highlight that saving for retirement is more important to expatriates than it is to nationals in the GCC 6. 5 Based on the assumption that the highest bracket has savings and investments worth $550, These results are confirmed by a series of logistic regressions for the identification of motivation to save. The regressions account for age, location, nationality (national or expatriate), as well as income level. Figure 05. Total current value of savings Less than 5,000 (US$) 5,000 to 9,999 (US$) 10,000 to 19,999 (US$) 20,000 to 29,999 (US$) 30,000 to 39,999 (US$) 40,000 to 49,999 (US$) 50,000 to 99,999 (US$) 100,000 to 199,999 (US$) 200,000 or more (US$) MENA 45% 13% 10% 6% 5% 4% 6% 5% 6% GCC 49% 10% 10% 6% 5% 5% 4% 4% 6% nationals GCC expats 31% 14% 11% 8% 7% 4% 8% 7% 9% Figure 06. Motivation for saving Age group (MENA) MENA GCC nationals GCC expats Age Age Housing needs 25% 37% 23% 23% 10% Medical 3% 2% 3% 3% 5% expenses Own marriage 10% 10% 7% 25% - Retirement 7% 5% 10% 3% 17% Children s 16% 7% 21% 7% 24% education Children s 3% 2% 3% 1% 12% marriage General savings 8% 8% 7% 11% 5% Wealth 9% 12% 10% 10% 4% accumulation Precautionary 19% 18% 16% 17% 22% Savings and retirement attitudes survey Middle East and North Africa 9

10 Given the findings of respondents motivation to save, we explore the top three vehicles used for savings and investment, and find that a third place their funds in savings accounts, 19% save in the form of land and property investments, 16% make bank deposits, while 15% invest in gold and silver. More than a quarter (29%) save using vehicles other than those listed in Figure 07. This is consistent with the motivations for savings outlined above. Placing savings in deposit and savings accounts as well as purchasing gold and silver align with a precautionary savings motive, since this requires liquid assets (that is, those which can be called upon quickly). Housing is a major concern in the region, especially where two-thirds of the respondents do not own the properties that they live in; these concerns are also highlighted where we see that a quarter of respondents invest in land and property. Land and property ranks first in importance of current savings, with 32% of all respondents choosing it as a means to save. It is also the preferred vehicle when all top three choices are aggregated, with 60% of respondents selecting it in their top three savings vehicles. Interestingly, when we look at what is ranked first as a vehicle for savings in the GCC, we find that although profiles are similar, a higher percentage of nationals invest in company shares. We also see that expatriates opt to hold more bank deposits compared to nationals. This pattern may be an artefact of business ownership laws in the GCC, as well as an incentive for expatriates to accumulate deposits for future transfer to their home countries. The majority of respondents (73%) hold most of their savings in their country of residence, compared to 26% holding their savings in their home country. The pattern is similar to where these savings were held 12 months prior to the survey, where 76% held their savings in their country of residence and 23% in their home country. Looking at expatriates in the GCC this becomes quite noticeable with a shift from 47% holding their savings in their home countries to 53% twelve months later. Notably the shift is towards home country, where this repatriation of savings possibly reflects concerns about the political situation in the region with the eruption of the Arab Spring in early Figure 07. Savings vehicles Savings vehicles over the last 12 months (MENA) Current savings vehicles (MENA) Current savings vehicles (GCC nationals) Current savings vehicles (GCC expats) Bonds 6% 3% 3% 4% Company shares 11% 4% 10% 2% Mutual funds 7% 2% 3% 3% Insurance policies 6% 2% 1% 2% Bank deposits 16% 8% 6% 10% Savings account 34% 17% 20% 14% Gold and silver 15% 17% 11% 18% Jewellery 8% 4% 3% 4% Land and property 19% 32% 31% 34% Invest in business 7% 8% 9% 6% Other 3% 3% 3% 2% None of the above 29% Figure 08. Location of majority of savings Current location of savings Location of savings 12 months ago Country of Home Other Country of Home Other residence country residence country MENA 73% 26% 1% 76% 23% 1% GCC residents 61% 37% 2% 66% 33% 1% GCC expats 45% 53% 2% 51% 47% 2% 10 towerswatson.com

11 Retirement More than two-thirds of respondents (67%) plan to retire before the age of 65. This calls into question whether expectations of workers in the region are realistic, especially given that savings for retirement ranks seventh in employees motivation to save. Naturally enough, we see that younger workers are more optimistic about their retirement age than older workers, given that younger employees have more time to build their finances for retirement. Younger employees may, of course, need to adjust their expectations upwards in the future. The mode of the retirement age in the region is the same for all age groups, and is expected to be between the ages of Figure 09 provides a full breakdown of expected retirement ages in the region. Figure 09. Expected retirement age MENA Percentage Expected age of retirement Unsure Under Age Age All Location of retirement The majority of respondents (54%) plan to retire in their current country of residence. When we focus on the GCC, we see that this falls to 42% which can be explained by the high percentage of expatriates in the workforce. Expatriates in the GCC mostly plan to return home and retire, where 62% indicated that this was their plan. Less than a fifth (19%) of GCC expatriates plan to retire in their current country of residence. Figure 10. Expected location of retirement GCC expatriates 19% Country of residence 62% Home country 4% Other 15% Unsure Savings and retirement attitudes survey Middle East and North Africa 11

12 Despite global economic uncertainty, many workers in the region are confident about having a financially comfortable retirement. We find that in terms of standards of living in retirement, more than half (53%) believe that their standard of living will be unchanged or improve. One-fifth (21%) are uncertain what their standard of living will be in retirement, while alarmingly over a quarter (26%) expect their standard of living to decline. So what poses a risk to this standard of living in retirement? The majority of respondents (72%) cite rising living costs as their primary concern, with the age cohort currently closest to retirement most likely to cite this. Insufficient retirement funds (42%) followed, with the age group 40+ more likely to be concerned about the adequacy of their retirement funds, whereas expatriates and those in the highest earning brackets were less likely to be concerned about this. Surprisingly, those in the highest earning brackets and expatriates were more likely to be concerned with emergency costs. Medical bills and political instability pose a risk for 29% and 27% of respondents respectively. Despite global economic uncertainty, many workers in the region are confident about having a financially comfortable retirement. Figure 11. Expected standard of living during retirement compared to pre-retirement MENA 0 A lot worse A little worse About the same A little better A lot better Do not know Rising living costs Poor returns on savings 11 Unexpected costs Medical bills Inadequate state support 24 Insufficient funds Insufficient family resources 8 Crash in house prices 4 Foreign exchange risk 10 Political instability Other Figure 12. Risks to standard of living in retirement MENA Percentage Percentage 12 towerswatson.com

13 Inadequate retirement funds To sustain current standards of living, more than half of respondents (52%) agree that they will have to work later in life and delay their retirement. The majority (73%) believe that they will have to save substantially more to maintain their standard of living in retirement. These results hint at the inadequacy of retirement savings and planning in the region, and reiterate that the earlier responses regarding retirement age may have been optimistic. The conventional wisdom that a family safety net will look after the elderly may not be true as a high proportion (68%) of those surveyed indicates that children cannot be relied upon to provide for parents. This pattern holds for both nationals and expatriates of GCC countries. Just over two-fifths (42%) of respondents have calculated what they would need for a comfortable retirement. This, however, varies from 39% for those aged 20 to 29 to 54% for those aged 50 to 59. On closer inspection of the data this proportion increases to around the 40% mark for the 20 to 40 age group, and then jumps to around 55% for those aged 50+. We find that 45% would be willing to give up more of their current pay for a guaranteed retirement income. Only 36% believe they will have enough money for a comfortable retirement, and a similar 33% believe that they would be able to easily afford healthcare expenditure in that phase of their lives. Just under one-fifth of respondents (19%) indicate that end-of-service benefits will be the first source of retirement funds, followed by government pensions (18%) and property (17%). The reliance on government pensions is not surprising given that replacement rates in the region are high compared to other parts of the world. However, this does not mean that these government pensions are adequate, or in fact sustainable, at current levels. Interestingly, we see that retirement savings products rank at the bottom of the list of options, even after family resources and inheritance. This is perhaps due to the undeveloped retirement savings industry in the region. In the GCC we see that expatriates rank other savings and investments significantly higher than nationals (15% and 5% respectively). Given the lack of adequate retirement funds, it would make sense for employers to offer retirement benefits as part of their employee value proposition to attract and retain talent. Yet nearly two-thirds of respondents (61%) indicate that their employers do not offer any such retirement plans, and 11% are unsure whether their employer provides any retirement benefits or not. Where retirement plans are provided, most respondents (87%) are enrolled. Figure 13. Retirement outlook MENA Percentage Easily afford healthcare expenditures Have enough for a comfortable retirement Willing to sacrifice current pay for guaranteed income in retirement Retire or work later in life Calculated needs for a comfortable retirement Harder for children to support parents Save more to maintain standard of living All Age Age Savings and retirement attitudes survey Middle East and North Africa 13

14 The majority of respondents (77%) indicate that their employer provides private medical cover, and more than a quarter (26%) have other additional supplementary healthcare cover (18% purchase their own, while 8% are entitled through a spouse, parent, or other relation). Out of pocket healthcare expenses are borne by 53% of respondents. The majority (76%) pay for these costs out of their salary, while 30% use some of their savings and 12% borrow money from friends and family. Figure 14. Sources of retirement income Percentage End-of-service benefit Government pension Property Family business Family support Inheritance Retirement savings products Other Working after retirement Other savings and investments All (MENA) GCC nationals GCC expats 14 towerswatson.com

15 Benefits preferences Our survey asked employees to rate trade-offs between hypothetical options in their pay packages. Their answers uncover a clear picture of which rewards and benefits employees value most. The majority of respondents prefer a larger pay increase today with a smaller future bonus; at the same time 43% would sacrifice a smaller pay increase today for a higher income in retirement: this reiterates employees concerns about a comfortable retirement. Similarly, 48% prefer to combine smaller bonuses today with a higher retirement income. When it comes to medical coverage, 41% prefer to combine smaller pay increases today with more generous healthcare coverage. However, when it comes to a choice between retirement income and current healthcare coverage, it seems that respondents are torn; 36% prefer higher retirement income with less generous health insurance, while 38% prefer to combine lower retirement income with more generous health coverage during employment. Retirement security emerges again as a valued factor, with 38% of respondents citing a preference for higher income in retirement, even if it comes with associated risk. There is a significant difference between GCC expatriates and nationals, with expatriates preferring a lower income in retirement for larger bonuses and pay increases. Figure 15. Benefits preferences MENA Percentage Greater pay increase and lower retirement income Higher retirement income and less generous health insurance Larger bonus today and lower retirement income Larger pay increase and less generous health insurance Lower guaranteed retirement income versus risky higher income Larger pay with lower bonus Agree Neither Disagree The majority of respondents prefer a larger pay increase today with a smaller future bonus; at the same time 43% would sacrifice a smaller pay increase today for a higher income in retirement: this reiterates employees concerns about a comfortable retirement. Savings and retirement attitudes survey Middle East and North Africa 15

16 Figure 16a. Benefits preferences GCC nationals Percentage Greater pay increase and lower retirement income Higher retirement income and less generous health insurance Larger bonus today and lower retirement income Larger pay increase and less generous health insurance Lower guaranteed retirement income versus risky higher income Larger pay with lower bonus Agree Neither Disagree Figure 16b. Benefits preferences GCC expats Percentage Greater pay increase and lower retirement income Higher retirement income and less generous health insurance Larger bonus today and lower retirement income Larger pay increase and less generous health insurance Lower guaranteed retirement income versus risky higher income Larger pay with lower bonus Agree Neither Disagree We find differences in all benefits trade-offs when we look at respondents by age group. Younger cohorts exhibit a higher preference towards higher salary and bonuses and are less willing to sacrifice their current income (salary and bonuses) for a higher retirement income. The younger respondents also have a lower preference for medical insurance compared to the 50+ age group. There is a significant difference between GCC expatriates and nationals, with expatriates preferring a lower income in retirement for larger bonuses and pay increases. 16 towerswatson.com

17 Conclusion Amid continuing global economic uncertainty, there is a surprisingly low level of savings in MENA. This defies the illusion that employees in the region save a significant proportion of their income. Although expatriates exhibit a higher level of savings than nationals, there is still a substantial proportion that save less than 10% of their income. This warrants a closer look at the savings patterns of the different expatriate groups by country or region of origin, since there is previous evidence that cultural effects considerably influence savings rates 7. Employees savings motivation in the region tend to focus primarily on housing needs and precautionary savings. It is concerning to see that saving for retirement ranked low amongst respondents, especially given that many are uncertain whether they will be able to maintain their current standard of living in retirement. It is, however, encouraging to find that many employees would be willing to sacrifice higher pay increases and bonuses today in order to ensure a higher income in retirement. Given these findings, employers in the region should begin to review their employee value proposition and total rewards offering in order to gain a competitive advantage and attract and retain key talent. 7 See Al-Awad Elhiraika (2003) References Rocha, R., Arvai, Z., Farazi, S. (2011). Financial Access and Stability: A Road Map for the Middle East and North Africa. World Bank. Robalino, D. (2005), Pensions in the Middle East and North Africa: Time for Change. Washington DC: The World Bank. DeMarco, G. (2011), Retirement Savings in MENA. World Bank, Washington DC. INTMNAREGTOPPOVRED/Resources/MENAFlagshipPensions3_10_11.pdf Mouawiya Al-Awad & Adam Elhiraika, (2003). Cultural Effects and Savings: Evidence from Immigrants to the United Arab Emirates, The Journal of Development Studies, Taylor and Francis Journals, vol. 39(5), pages Savings and retirement attitudes survey Middle East and North Africa 17

18 About the survey The Towers Watson Middle East and North Africa savings and retirement attitudes survey includes responses from 2,624 employees, working for organisations of 100 or more employees across the Middle East and North Africa region. The survey examines employees savings behaviour and retirement readiness as well as their preferences towards employment rewards and benefits. All respondents Employment status 56% National 44% Expatriate 96% Full-time 4% Part-time GCC respondents Age 33% National 67% Expatriate 33% % % % % 60+ Gender 87% Male 13% Female 18 towerswatson.com

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20 About Towers Watson Towers Watson is a leading global professional services company that helps organisations improve performance through effective people, risk and financial management. With 14,000 associates around the world, we offer solutions in the areas of employee benefits, talent management, rewards, and risk and capital management. The information in this publication is of general interest and guidance. Action should not be taken on the basis of any article without seeking specific advice. To unsubscribe, eu.unsubscribe@towerswatson.com with the publication name as the subject and include your name, title and company address. Copyright 2013 Towers Watson. All rights reserved. TW-EU January towerswatson.com