According to a study conducted by UAE-based financial advisory Hoxton Capital Management, around 85 per cent of expats based in the Middle East are not saving for their retirement and many leave for home less wealthy than when they arrived.
Chris Ball, managing partner at Hoxton Capital Management, said that while expatriates in the Middle East may be benefiting from improved salaries, they aren’t necessarily making the most of their increased earnings.
"The majority of expats in the Middle East are earning more than they were before relocating, however as many as 85pc of foreign workers may not be saving for retirement – with a further 47pc admitting that they aren’t saving appropriately," he said.
Hoxton Capital’s research also suggests that as many as two-thirds of people who move to the region for employment return home less wealthy than when they arrived.
"Our research identifies that a large number of expats do not completely understand their financial options while working abroad. Around two-thirds of individuals who relocate return to their country of origin less wealthy than when they arrived.
"Many expats find themselves in an awkward position after a number of years abroad where they have essentially outspent what they have earned. This could be down to inadvisable investments or leading a more extravagant lifestyle than they would at home. Individuals who find themselves in this position might be forced to repatriate and in most cases such an upheaval isn’t desirable.
"Almost half of expats living in the Middle East admit that they aren’t saving appropriately and typically, the most common reason people give for not doing so is that they can’t afford it. In reality, everyone can set something aside each month and establishing what that amount is, is a natural starting point," Ball noted.