Singaporeans want to invest more, but life’s financial demands hold them back: Survey

Singaporeans are more inclined to increase their investments after securing their first full-time job than their counterparts in Hong Kong and Australia, according to a new survey commissioned by digital wealth management platform Syfe. The study, which polled 1,212 adults across Singapore, Hong Kong, and Australia, found that 65% of Singaporeans who pointed to their first job as a significant financial milestone invested more later compared to 49% in Hong Kong and 42% in Australia.

Despite this growing interest in investing, life's financial demands can often impede progress. As Singaporeans enter their 30s, 40s, and 50s, priorities shift, with significant expenses like purchasing a home or raising children often taking precedence over investing. In fact, 54% of Singaporeans reduced their investments after buying their first home, and 50% did so after having their first child. Supporting ageing parents also adds another layer of financial responsibility in both Singapore and Hong Kong.

The fear of losing money, insufficient funds, and a lack of investment knowledge emerge as the primary hurdles for Singaporeans looking to invest. Stability is the top investment priority for Singaporeans, with 54% preferring fixed deposits over equities if stability is their primary concern. In contrast, those prioritising growth are more likely to invest in equities, with 61% of such investors choosing this route.

A notable pattern emerges when examining investment confidence across age groups in Singapore. Younger Singaporeans aged 18 to 24 exhibit the highest levels of confidence, with 40% describing themselves as extremely or very confident in making investment decisions. However, this confidence declines significantly among those aged 55 and above, where only 12% report similar levels of certainty.

Gender also plays a role, with Singaporean women being less inclined than men to prioritize growth as their primary investment focus. Confidence among women is notably lower, with 13% feeling extremely or very confident compared to 35% of men. Additionally, women are twice as likely as men not to invest, at 32% versus 15%.

As retirement draws nearer, the focus transitions from accumulating wealth to ensuring savings can support a more extended period of financial independence. However, many Singaporeans express uncertainty about the amount they require in retirement. According to the survey, 76% of Singaporeans believe their retirement savings fall short of expectations. Furthermore, a third have never calculated their retirement savings target, while 40% have merely chosen a round number that feels right.

This lack of a well-defined retirement plan is a critical factor, as those who select a numerical target tend to set more ambitious goals. In Singapore, those who chose a round number have a median target of $700,000 to $999,999, compared to a more substantial range of $1 million to $1.99 million for those who calculated their target based on expenses. The same trend is observed in Hong Kong and Australia.

In terms of retirement savings, the survey reveals a positive correlation between age and accumulated funds. Gen Z, comprising individuals aged 14 to 29, holds an average of $61,000 in savings, while millennials (aged 30-45) and baby boomers (62-80 and older) have average savings of $192,000 and $455,000, respectively. Only 15% of Singaporeans are consciously working towards a traditional full retirement, with the most popular alternative being semi-retirement, chosen by 27% of respondents.

Notably, 13% indicated they have no retirement plans at all, reflecting evolving attitudes towards retirement that emphasize continued work rather than complete cessation of earnings.