Affluent Singapore respondents say they need US$1.39 million to retire comfortably: HSBC survey
That surpasses the retirement savings targets cited by investors in Hong Kong (US$1.11 million), Australia (US$1.23 million) and United Arab Emirates (US$1.17 million).
The study surveyed more than 10,000 affluent investors across 12 markets globally, aged 21 to 69, each possessing investable assets ranging from US$100,000 to US$2 million.
The study also revealed that Singapore was one of the top destinations for investors to move their money to. It placed Singapore alongside the US and Hong Kong as the top three jurisdictions for opening overseas investment accounts.
From cash to gold: a shift in investor allocations
Singapore investors are also shifting their portfolio allocations. While cash remains the largest single asset class at 24 per cent, allocations have declined compared to last year. In tandem, exposure to gold and precious metals has risen 40 per cent year-on-year.
There is also growing interest in alternative assets such as private equity and hedge funds, as investors seek diversification amid macroeconomic uncertainty and market volatility.
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Globally, the pivot away from cash is even more pronounced, with affluent investors reducing their cash holdings by nearly 40 per cent. They also raised their gold allocations by 120 per cent and doubled their investments in alternative assets such as private equity and hedge funds.
Despite heightened uncertainty and rising living costs, nearly two-thirds of affluent investors in Singapore remain confident about achieving their long-term financial goals.
The optimism is particularly pronounced among younger investors, with about 70 per cent of Gen Z and millennials expressing confidence – outpacing their Gen X and baby boomer counterparts, where the figure stands at 60 per cent.
While retirement planning and wealth accumulation remain key priorities, saving for leisure and personal well-being has now emerged as the top financial objective for Singapore investors. This shift suggests a recalibration of long-term goals, especially among younger segments who are balancing financial prudence with lifestyle aspirations
Broader product adoption among younger investors
Notably, younger investors in Singapore are also diversifying the way they build their portfolios, moving beyond traditional asset classes and embracing a broader set of investment products.
The report found strong demand among younger investors for digital gold, multi-asset solutions, private market funds (equity or credit), mutual funds or unit trusts and hedge funds.
This signals a more diverse approach to portfolio construction, particularly among digital-native investors who are comfortable navigating a wider range of financial products.
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