Bahrain’s local and expat population may be too focused on achieving relatively short-term financial goals and neglecting to have long-term planning, according to research from Zurich International Life and Citi.

The survey was conducted by The Nielsen Company, a leading global provider of information and insights into what consumers watch and buy.

Sixty-eight per cent of the 233 respondents to the survey of locals and expatriates residing in Bahrain said they are optimistic about the outlook for the economy over the next 12 months. Respondents also feel secure about their individual circumstances, with 83 per cent confident that the state of their personal finances will be good or excellent over the coming year.

Rather than spending their hard earned money, 66 per cent of respondents intend to save or invest any spare cash, with the education of their children and starting a business the top financial priorities for 34 per cent of residents. The next highest financial priorities are investing in property (32 per cent), a child’s marriage (23 per cent), and starting a family (14 per cent).

Of concern, however, the research points to a lack of long-term retirement planning among people residing in Bahrain, with only 8 per cent naming this as their top financial priority. Moreover, only 47 per cent of respondents say they have taken any steps to secure their long-term future, with just 10 per cent investing in a retirement fund in the last 12 months.

Andrew Dawson, Bahrain general manager at Zurich International Life, said: “It is great to see such a strong savings culture embedded in Bahrain with residents prioritizing investment in the important things in life, such as their children’s education and their homes.”

“Yet confidence in the strength in the economy could be leading some residents to focus on immediate priorities at the expense of their retirement planning. In fact, supported by the strong economy, now is the ideal time for residents in Bahrain to refocus on their long-term financial goals,” he added.

Zurich and Citi’s research suggests one reason expats in particular may not be planning for their retirement is a misconception about portability, with 20 per cent of those who do not intend to subscribe any pension or life insurance product wrongly believing it will be of no use when they leave the country.

Thirty-six per cent also believe they have sufficient savings and investments in place to support their later years, while 34 per cent of respondents simply admit that they do not fully understand retirement products.  

Navneet Kampani, consumer banking head at Citi, said: “Bahrain has arguably the most mature financial services industry in the region and yet misconceptions and misinformation about life insurance and pension products persist. It is incumbent on Bahrain’s financial services industry to do a better job of educating residents about planning for their retirement and raise awareness to the importance of life insurance.” – TradeArabia News Service