62 percent of GCC parents end up utilizing their monthly salary to pay for their child’s tuition fees, the survey by Zurich International Life reveals
DUBAI, United Arab Emirates: Tuition fees for higher education is the leading concern for 70 percent of parents in the United Arab Emirates (UAE) revealed a survey commissioned by Zurich International Life (Zurich), part of Zurich Insurance Group. The survey further revealed that less than a third of the parents surveyed have an education savings plan in place.
According to the survey, 39 percent of families in the UAE are digging deeper into their personal savings. In comparison, 15 percent have resorted to taking personal loans.
Conducted in partnership with research firm YouGov in July 2022, the survey covered over 1,500 GCC residents across the UAE, Saudi Arabia, Qatar, and Bahrain. It also included parents and married residents across various income groups, occupations, age groups, and gender.
“Our recent survey has unearthed interesting insights including the fact that a good 62 percent of parents in the GCC use their monthly income for school-related expenses while the majority of others rely on personal savings or loans. With the increasing cost of education and uncertainties of life, parents should seriously consider investing in a structured savings plan to support their child’s education. Always back your education savings plan with life insurance cover, which fully protects you and secures your child’s future,” said Rayner Britto, Head of Distribution at Zurich International Life.
While tuition fees are the top concern for most UAE respondents, living expenses followed at 54 percent, and securing admission to an institute of their choice was an additional concern for 53 percent.
The survey findings showed that eight out of 10 couples in the UAE set aside up to 40 percent of their monthly income to pay tuition fees, with the average annual cost of education among those surveyed in the UAE amounting to AED 45,676. Confidence levels were not very high, with only 34 percent of UAE residents feeling “very confident” that they will be in a position to support their children’s further education financially.
More parents in the region are investing in education savings plans to ensure they can adequately provide for their child’s education. Among those parents that have invested in a savings plan, 29 percent said that they were mostly influenced by their social circles, while 27 percent were influenced by financial advisers.
“I was thrilled when our eldest daughter got accepted into the University of Warwick thanks to sound financial and investment advice from Zurich International Life. Although the starting amount was small, we were able to upgrade the policy with time. Thanks to the great advice, when the time came for our daughter to go to university, we could assure with complete confidence that we would be able to support her financially. Even today, my advice to people is that it is never too late to start investing and secure a good future, no matter how small your starting amount,” said Shashi Kiran, a UAE-based Group General Manager at a supply chain logistics firm.
When it comes to selecting a destination for their children’s higher education, 41 percent of UAE residents said they plan to send their children abroad, with around 12 percent hopeful of getting a scholarship. Popular higher education destinations included the USA, Canada, UK, and India among others. However, the UAE still ranked as the top destination, with 35 percent of parents across the GCC choosing this as their preferred location.
“43 percent of the parents surveyed said that a better understanding of education savings plans and their benefits would motivate them to invest in the same. Starting the conversation with a financial adviser is an important first step. When it comes to savings, the good news is that it’s never too small and never too late,” noted Britto.
About Zurich Insurance Group
Zurich Insurance Group (Zurich) is a leading multi-line insurer serving people and businesses in more than 210 countries and territories. Founded 150 years ago, Zurich is transforming insurance. In addition to providing insurance protection, Zurich is increasingly offering prevention services such as those that promote wellbeing and enhance climate resilience.
Reflecting its purpose to ‘create a brighter future together’, Zurich aspires to be one of the most responsible and impactful businesses in the world. It is targeting net-zero emissions by 2050 and has the highest-possible ESG rating from MSCI. In 2020, Zurich launched the Zurich Forest project to support reforestation and biodiversity restoration in Brazil.
The Group has about 56,000 employees and is headquartered in Zurich, Switzerland. Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt (ZURVY) program, which is traded over-the-counter on OTCQX. Further information is available at www.zurich.com.
About Zurich International Life Limited
Zurich International Life Limited is a part of Zurich Insurance Group and established in the Isle of Man, which is licensed by the Isle of Man Financial Services Authority with established and registered branches in the UAE licensed by the Central Bank of the UAE, Bahrain licensed by the Central Bank of Bahrain and the Qatar Financial Centre authorised by the Qatar Financial Centre Regulatory Authority. In the UAE, it is registered (Registration No. 63) under UAE Federal Law Number 6 of 2007, and its activities in the UAE are governed by such law.