As inflation and the rising cost of living continue to strain finances globally, Generation Z professionals in the UAE are turning to unconventional methods, such as side hustles and cryptocurrency investments, to secure their financial futures. Many young workers are increasingly worried that their savings might not last through retirement.
Retirement Concerns Among Gen Z
A recent report by BlackRock revealed that 69% of Gen Z worry about outliving their retirement savings, reflecting a growing unease about financial stability. Rising rents, commodity prices, and inflation have exacerbated these concerns, pushing young professionals to rethink traditional approaches to saving and investing.
“Inflation has been soaring globally, and even in Dubai, the cost of living has steadily risen over the past decade,” said AbdulMalik Ifthikar, a finance student at the University of Wollongong. He stressed the importance of managing expenses wisely and avoiding unnecessary purchases to maintain financial stability.
The Rise of Side Hustles
Many young workers are exploring secondary income streams to boost their earnings.
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AbdulMalik’s Experience:
The 20-year-old launched a media production company and invested in Index funds like the S&P 500, noting their potential for annual returns of 5-7%. -
Freelance and Multiple Jobs:
Tejasvi Sandeep Gurjar, a 22-year-old fashion marketer, highlighted the growing trend of juggling multiple jobs, including freelance assignments, to combat financial worries.
Cryptocurrency Gaining Traction
Cryptocurrencies are becoming a popular investment choice among Gen Z, offering an alternative to traditional savings.
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Tejasvi’s Approach:
She invests in cryptocurrency, considering it a long-term solution to tackle rising expenses. “If you invest for a longer period, you can benefit from it,” she said. -
Broader Perspectives:
Qais Abuiktish, an industrial engineering student, also emphasized the potential of crypto, alongside gold, stocks, and real estate, to generate wealth over time.
Generational Shifts in Financial Mindsets
Many young workers believe they have an advantage over older generations due to their access to financial literacy tools and investment options.
- Learning from the Past:
“Gen Z is more proactive about retirement planning, thanks to the vast resources available online,” Qais said.- Changing Perspectives:
Unlike their parents, who prioritized savings and expense-cutting, younger professionals focus more on investments and leveraging financial instruments to grow wealth.
- Changing Perspectives:
Challenges and Opportunities
While opportunities for investment and multiple income streams have grown, challenges such as job market saturation, AI disruption, and economic uncertainty remain.
- Fear of AI:
Tejasvi reflected on concerns among her peers, noting fears of AI replacing traditional roles, pushing young workers to seek financial backups like crypto and XRPs.
Outlook
As the financial landscape evolves, Gen Z professionals in the UAE are redefining how they approach savings, investments, and retirement planning. From side hustles to digital currencies, their proactive strategies highlight a shift towards financial independence in an increasingly uncertain world.
