Financial planners urge investors to consider other options as T-bills yields lose steam
Investment advisers caution that more needs to be put into equities
Singapore investment advisers are urging investors to look beyond low-yielding Treasury bills and Singapore Savings Bonds, as their yields continue to decline. A DBS report from last year revealed that many older Singaporeans, particularly those aged 35 to 44, still rely heavily on T-bills and SSBs, allocating around 60% of their investments to these instruments.
However, experts warn that this over-reliance on these low-growth assets could hinder long-term wealth accumulation, as retirees may need between S$550,000 and S$1.3 million to maintain their desired lifestyle, assuming a 20-year retirement period with an annual inflation rate of 2.5%. While T-bills and SSBs remain popular due to their government backing and predictable returns, they may not be the optimal choice for long-term savings.
Investment professionals suggest considering a mix of equities and bonds, tailored to individual risk tolerance, to enhance long-term returns and preserve purchasing power against inflation.
Written by urgent.news from The Business Times - Singapore's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
