UAE Parents May Spend Up to $163K on Higher Education

Parents in the UAE anticipate spending between AED 250,000 ($68,066) and AED 600,000 ($163,359) on their children's higher education, according to a recent YouGov survey commissioned by Zurich International Life.

Despite these anticipated costs, 29% of parents have yet to begin saving, highlighting a significant financial gap.

The survey, which involved 1,000 residents, shows that traditional saving methods remain popular, with 77% opting for bank deposits and 48% investing in shares. However, only 14% are using education-specific savings plans designed to outpace inflation and provide targeted benefits.

“While the substantial costs associated with higher education underscore the urgent need for effective savings strategies, starting early and choosing the right education savings plan can be a game-changer in helping parents save today for their children’s happily ever after," said David Denton-Cardew, Head of Propositions, Zurich in the Middle East.

The survey also indicates a strong interest in dual-purpose education savings plans, with 87% of respondents favoring plans that combine savings with life insurance coverage. Such plans offer a strategic approach, helping parents achieve long-term growth and financial security for their children's education.

Most parents believe that allocating 6% to 20% of their monthly salary is sufficient for education savings. However, the survey emphasizes the need for more effective and affordable savings plans. Empowering parents with tailored education savings plans remains a sustainable strategy to give their children the best chance at achieving their dreams.

“Having a well-structured education savings plan does more than just save money; it helps grow your money through appropriate investment strategies and ensures the protection of that investment. This strategy has some notable benefits including flexible payment options and the ability to tailor the plan to meet individual financial goals. The substantial costs associated with higher education underline the urgent need for effective savings strategies,” noted David.

As education costs continue to soar, starting early and exploring various savings options, including dual-purpose plans, can offer a balance of growth and security. Parents are encouraged to consider plans that offer tailored solutions, long-term growth, and the added peace of mind provided by life insurance coverage to meet these goals.

Zurich Insurance Group (Zurich) is a global multi-line insurer, providing services to individuals and businesses across more than 200 countries and territories with a history spanning 150 years.

The Group employs approximately 60,000 people 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 on the OTCQX market.