Standard Chartered Bank releases augural Wealth Expectancy Report 2019
New Wealth Expectancy Report reveals that wealthy Singaporeans’ wealth expectancy is more than twice the global average, but nearly half are likely to fall short of their expected retirement goal.
There is a big gap between expectations and the reality of retiring comfortably, according to Standard Chartered’s new Wealth Expectancy Report 2019. The report results show that based on the existing saving and investment habits of emerging affluent, affluent and high-net-worth individuals (HNWIs) surveyed, nearly 50 per cent of the savers in Singapore will fall short of their desired retirement goal.
The Wealth Expectancy Report 2019 examines the saving and investment habits of 10,000 savers1 across 10 markets – China, Hong Kong, India, Kenya, Malaysia, Pakistan, Singapore, South Korea, Taiwan and the UAE. The report compares the wealth aspiration they have for retirement against the wealth they expect to accumulate by the time they reach their highest point of affluence, assumed to be at age 60. The difference between wealth aspiration and expectancy is defined as the wealth expectancy gap.
There is a sizable gap between Singapore respondents’ wealth aspiration and what they expect to achieve. With an average wealth expectancy of US$2.4 million (US$622,000 for the emerging affluent, USD1.9 million for the affluent and USD4.7 million for HNWIs) and based on the projected life expectancy of 91 years, Singapore respondents can expect to survive on an average of US$6,666 each month after retirement. This falls below their current average monthly income of USD12,831. To sufficiently fund the lifestyle they aspire to have after retirement, the expected wealth created will only last the affluent 16 years, and the emerging affluent and HNWIs 19 years.
Only 52 per cent of Singapore’s savers have crossed the halfway mark in reaching their wealth aspirations. While this place the Singapore respondents above the global average of 44 per cent, there remains the other half who are looking set to be disappointed come retirement.
In Singapore, the emerging affluents’ financial goals are divergent from their more affluent peers. Saving for retirement is a top financial goal for two-fifths of the emerging affluent, which is more than any saver group in any other market and double Singapore’s affluent (23 per cent) and HNWIs (21 per cent). Interestingly, 22 per cent of HNWIs cite healthcare needs as a financial goal which is higher than the global average of 17 per cent.
Dwaipayan Sadhu, Head of Retail Banking Singapore, said “It is not easy, even for the affluent, to plan and achieve one’s retirement goals. This study shows that many are choosing savings accounts to grow their wealth, which affords capital protection and liquidity, at the expense of returns once inflation has been factored in. To close the wealth expectancy gap, we should also rely on a diversified portfolio of investments to lift and protect returns across market cycles. We can start by developing a better understanding of our retirement aspirations, risk appetite, and the market outlook.”
View the full report at https://www.sc.com/en/banking/driving-wealth-prosperity/wealth-expectancy-report-2019/ for more details.
Recommended news