Saturday 23 June 2018

Takaud aims to diversify savings with new plan

Manama, May 15, 2013

Takaud, a specialist provider of savings and pensions, has launched a new individual savings plan which aims to diversify personal savings and widen the investment horizon for long term savers.

“There is clearly a critical need for Mena-specific long-term savings and pensions solutions. Public pensions will continue to play a significant role in the Mena region, especially in the GCC countries, but for many of the population, there could be funding gaps for meeting  certain financial or retirement goals,” said Abdallah Kubursi, CEO of Takaud.

“For Mena nationals, Takaud’s solutions could help supplement public pensions in order to counter the effects of inflation and meet short-falls in their financial planning. Expatriates can also benefit as these solutions could top-up their end-of-service benefits and add to their retirement savings. With our unique solutions, Takaud aims to bring about a paradigm shift to the region in terms of how people take control of their financial future and long term needs.”

Takaud’s Individual Savings Plan provides a simple and localized approach to savings and pensions.

With a minimum monthly contribution starting at BD25 ($66), the product offers an affordable savings solution accessible to Mena nationals and resident expats for various financial goals and life stages including retirement, children’s education, new home purchases, starting a business or having the resources in place to financially manage any unforeseen emergencies.

The new plan can be customised to suit a person’s individual requirements in terms of risk, reward, diversification, age, time horizons and financial goals.

Regional market research has clearly revealed that there is a low level of savings in the Mena region, defying the perception that people save a large proportion of their income.

It also highlights that 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. Many individuals are expecting to work later in life in order to maintain current standards of living in retirement.

Samer Khanachet, chairman of Takaud and chief operating officer of Kuwait Projects Company (Kipco), said: “Studies have shown that savings rates in Mena are significantly lower in comparison to many emerging markets. These indicators unless addressed will lead to serious issues in financial and retirement planning for both Mena nationals and resident expats.

“Takaud directly addresses these critical issues by offering innovative savings and pension solutions. Our Individual Savings Plan was developed with a ground-up approach to specifically suit the needs of Mena customers. This individual savings market offering will complement our corporate ‘Employee Savings Plan’ which we recently introduced to the market. Takaud is now centre stage within the Mena savings and pensions space and we are committed to providing both nationals and expatriates with best-in-class savings and pensions solutions.”

According to the World Bank, the space for private pension development is expected to expand in the Mena region due to demand from both nationals and expatriates, and the associated sustainability issues of various public pension schemes.

Additionally, the National Bonds GCC Savings Index indicate that 30 per cent of Mena citizens do not save and within the GCC, 64 per cent of GCC citizens save less than a fifth of their monthly income and nearly 9 out of 10 GCC residents believe their savings are not adequate to support their long term needs. – TradeArabia News Service

Tags: National Bonds | Pension | Takaud |

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