Millennials are often seen as the lost generation when it comes to retirement. Between the global economic crisis of 2007-2008, soaring house prices and a stagnate jobs market, those born between the early eighties and mid-nineties have had it tough financially. Add to this longer life expectancies and low levels of saving and it’s easy to see why retirement doesn’t look so rosy for Generation Y.
According to a 2017 study by HSBC, almost half of millennials haven’t planned for their financial future. As per the Future of Retirement: Shifting Sands report, 41% of Generation Y haven’t started saving for retirement. The report goes on to suggest that millennials in the UAE are particularly aware of their financial plight. Almost 66% of the 1,127 surveyed said that they were concerned about their retirement goals.
However, despite the bleak outlook, those living in countries such as Dubai have potential on their side. In 2018, UBS found that Dubai was among the top three working destinations in the world for millennials behind New York and London. As well as a buoyant jobs market, 91% of those surveyed agreed that they were entrepreneurial and confident they would start their own business one day. Based on these factors, millennials in the region have the perfect opportunity to make enough money now so that they don’t have to worry in later life.
Indeed, if we look at some of the business opportunities for millennials, investing is one of the best options for those with an entrepreneurial spirit.
1. Invest Online
One of the most efficient ways to work independently is online trading. Thanks to advancements in online technology and the development of software such as MetaTrader, almost anyone can now trade everything from currencies to crude oil via their desktop or mobile. When someone wants to go online and check the latest CFD Dubai markets, they have a wealth of information at their fingertips. From daily newswires to training videos, novices can get a handle on the day’s market movements before investing.
With forms of trading like CFD trading, users can speculate on whether a commodity will increase or decrease in value without investing large sums of money. The end result is a more accessible way of trading. Although it might pay to take a course such as the University of Dubai’s CMA® (Certified Management Accountant) qualification, it’s not strictly necessary in today’s world.
2. Invest in Property
Diving straight into a construction project isn’t easy, but Dubai is a construction hub. Following a crash in 2008, property prices rose by 30% in 2013 as construction rates started to increase. Indeed, with Dubai will host Expo 2020, an international event focusing on developing economies in a sustainable way, building rates have ramped up in recent years. With the market ripe for picking, the savvy investor needs to know the market. Lewis Allsopp, CEO of Allsopp & Allsopp, says that age impacts a buyer’s choice of home. In his experience, millennials want affordable, high rise accommodation.
In contrast, as people get into their thirties and beyond, single-storey villas become the preference. On top of knowing what to build and for who, government targets also need to be considered. For example, Dubai’s rulers want 15% of electricity to come from renewable sources by 2030. Therefore, any sort of investment in a project with solar panels and would have a strong chance of turning a profit.
Invest Like a Millennial
Put simply, if you’re looking to invest in your future, it pays to take matters into your own hands. A city like Dubai offers a ton of potential for the money-savvy millennial, all you have to do is seize the opportunities. Whether it’s investing in one of the online markets or jumping on the construction bandwagon, there is money to be made if you can embrace the entrepreneurial spirit of the UAE millennial.
Image source: Pixabay.com.
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