With rising inflation and living costs straining finances globally, Generation Z professionals in the UAE are adopting unconventional strategies, such as side hustles and cryptocurrency investments, to safeguard their financial futures. Concerns about outliving retirement savings have driven many young workers to rethink traditional approaches to saving and investing.
Growing Retirement Concerns
A recent BlackRock survey highlighted that 69% of Gen Z professionals worry about depleting their retirement savings, reflecting the challenges posed by escalating rents, inflation, and commodity prices.
“Inflation has been soaring globally, and even in Dubai, the cost of living has steadily risen over the past decade,” noted AbdulMalik Ifthikar, a finance student at the University of Wollongong. He emphasized the importance of managing expenses wisely and avoiding unnecessary purchases.
Side Hustles: A Growing Trend
To tackle financial concerns, many Gen Z professionals are supplementing their income through secondary jobs and freelance opportunities.
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AbdulMalik’s Strategy:
The 20-year-old launched a media production company while investing in Index funds like the S&P 500. He noted that such investments can yield 5-7% annual returns, providing a stable financial backup. -
Freelancing for Stability:
Tejasvi Sandeep Gurjar, a 22-year-old fashion marketer, highlighted the increasing prevalence of juggling multiple jobs, including freelance assignments, to address rising expenses.
Cryptocurrencies: A Popular Alternative
Cryptocurrencies are emerging as a favored investment option among Gen Z, offering potential long-term financial growth.
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Tejasvi’s Crypto Investments:
Tejasvi considers cryptocurrency a viable way to offset rising costs. “If you invest for a longer period, you can benefit from it,” she said. -
Broader Investment Options:
Qais Abuiktish, an industrial engineering student, highlighted the potential of crypto, alongside traditional investments like gold, stocks, and real estate, to build long-term wealth.
A Shift in Financial Mindsets
Unlike older generations, Gen Z professionals are leveraging digital tools and resources to make informed financial decisions.
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Learning Early:
“Gen Z is more proactive about retirement planning, thanks to the vast resources available online,” Qais said. -
Changing Perspectives:
While older generations focused on savings and expense-cutting, Gen Z prioritizes investments and financial instruments to grow wealth over time.
Challenges Ahead
Despite increased opportunities, challenges such as job market saturation, AI disruption, and economic uncertainty persist.
- Fear of AI:
Tejasvi expressed concerns about AI potentially replacing traditional roles, pushing Gen Z professionals to diversify their income sources and invest in future-proof assets like cryptocurrencies.
The Road Ahead
As financial landscapes evolve, Gen Z professionals in the UAE are reshaping their approach to savings, investments, and retirement planning. Their proactive use of side hustles, freelance work, and alternative investments like crypto underscores their commitment to achieving financial independence in an unpredictable world.
