UAE: Young employees turn to part-time jobs, crypto as they 'worry savings won't last through retirement'

The youngest generation in the workforce is already thinking about retirement savings and expressing concerns about their future retirement income. Many are even turning to cryptocurrencies in order to generate more income.

Despite some ease in inflation, the high cost of goods and services worldwide continues to place a significant burden on people, particularly Generation Z, who are increasingly worried about financial stability.

According to a recent report from the BlackRock Read on Retirement survey, 69 per cent of Gen Z are concerned about “outliving their retirement savings.”

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Khaleej Times spoke with a diverse group of expatriates to explore the reasons behind these concerns.

AbdulMalik Ifthikar, a finance student at the University of Wollongong, said, “Inflation has been soaring globally, and even in Dubai, the inflation rate has been steadily rising over the past seven to eight years. Given the intense competition in Dubai, many Gen Z individuals feel that earning money has become increasingly challenging. As a result, most believe that by the time they retire in their mid-50s or 60s, the combination of rising inflation and the struggle to earn will leave them with insufficient savings for retirement.

“Personally, I manage my expenses carefully. Many of the costs we incur today are, quite honestly, unnecessary -- whether it’s random outings or impulsive purchases here and there.”

The 20-year-old stressed that managing one’s finances wisely is essential from the beginning, and avoiding impulsive or unwise financial decisions is crucial.

Side hustles are common

“Exploring side hustles can also help improve financial stability. For instance, I started a media production company as a secondary source of income.”

Additionally, he has allocated some of his savings into Index funds and ETFs.

“While my investment in ETFs is limited, I’ve primarily focused on Index funds like the S&P 500. I believe that rather than letting my money sit idle in a bank account—especially when I know I won’t need to access it-- it’s more beneficial to invest in an Index fund, where I can potentially see an annual increase in value of around 5-7 per cent,” added the Sri Lankan expat.

Ifthikar emphasised that different types of investment products and financial instruments that were relatively unfamiliar during his parents’ time are now widely understood.

“When I compare myself to the older generation, particularly my dad, I feel that I am slightly wiser when it comes to finances. When my father was in his 20s, his focus was primarily on earning money, securing a stable job, and ensuring the family’s well-being. Our relationship with money is different. Many Gen Zs are diving into these topics much earlier, thanks to the easy access to information and resources available at our fingertips.”

Industrial Engineering student at American University of Sharjah (AUS) Qais Abuiktish, also stressed that though many Gen Zs are worried about future income streams, they have an edge over the previous generations due to their access to an overwhelming amount of content.

Cryptocurrencies gain popularity among Gen Z

“Personally, I worry about retirement because it feels much harder now to earn money, secure employment, and save effectively. It’s increasingly challenging to accumulate enough to sustain us in the future. Additionally, job opportunities are scarcer, and a degree alone no longer guarantees success due to the evolving job market,” said the 19-year-old.

The Palestinian expat reiterated that their generation has seen the effects of inflation over time, which has driven up the cost of living. “But having said so, today, there are more options for investment, such as cryptocurrencies or more traditional choices like gold, stocks, land, or real estate, all of which can increase in value over time.