Wealth Insights
Report 2023
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Sentiments on the economy, personal
financial health and investment habits of
respondents in Singapore and Hong Kong.
financial health and investment habits of
respondents in Singapore and Hong Kong.
Sentiments on the economy, personal financial health and investment habits of respondents in Singapore and Hong Kong.
introduction
Wealth Insights Report 2023
Persistent anxiety around inflation is driving investors of all ages to make decisions — not motivated by evidence, but — prompted by emotion. Against a backdrop of protracted market uncertainty, fuelled by the fallout of Silicon Valley Bank and Credit Suisse: both young and old alike, surveyed by Endowus, report an emphasis on savings in 2023 and only invest "when they feel like it".
This is despite clear evidence that the value of one's savings is easily eroded by high inflation — making such efforts counterproductive, even for active savers and investors.
In this edition of Endowus Wealth Insights Report, we take a deeper look at the general sentiment on the economy, as well as personal financial health and investment habits, across a representative audience in Singapore and Hong Kong. In doing so, we hope to provide you with both timely and timeless insights on the behaviours of individual investors like yourself.
There are actionable next steps you can take to build your retirement nest egg for the long-term, despite the noise of short-term market volatility. You will discover why just "saving more money" isn't enough; how to make those savings work harder for you even during times of high inflation, and the important difference between investing and speculation. Investing consistently with an evidence-based approach will give you the highest chance of a financial return that compensates you for the risk that you take.
Visit Endowus’ Fin.Lit Academy for more insights and financial literacy content on personal finance, wealth building, retirement, women & investing, and more.
Milieu Insight is the research partner for this study, and more than 1,400 respondents were surveyed. Fieldwork was conducted between 20 March to 3 April 2023.
This is despite clear evidence that the value of one's savings is easily eroded by high inflation — making such efforts counterproductive, even for active savers and investors.
In this edition of Endowus Wealth Insights Report, we take a deeper look at the general sentiment on the economy, as well as personal financial health and investment habits, across a representative audience in Singapore and Hong Kong. In doing so, we hope to provide you with both timely and timeless insights on the behaviours of individual investors like yourself.
There are actionable next steps you can take to build your retirement nest egg for the long-term, despite the noise of short-term market volatility. You will discover why just "saving more money" isn't enough; how to make those savings work harder for you even during times of high inflation, and the important difference between investing and speculation. Investing consistently with an evidence-based approach will give you the highest chance of a financial return that compensates you for the risk that you take.
Visit Endowus’ Fin.Lit Academy for more insights and financial literacy content on personal finance, wealth building, retirement, women & investing, and more.
Milieu Insight is the research partner for this study, and more than 1,400 respondents were surveyed. Fieldwork was conducted between 20 March to 3 April 2023.
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Key Insights
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Inflation rates in Singapore and Hong Kong have eased slightly – Singapore’s annual inflation rate retreated to 6.3% in February 2023 from 6.6% in the previous month, while Hong Kong’s YoY inflation rate fell to 1.7% in February from 2.4% in January. Evidently, this decline has not sufficiently alleviated the worries of consumers. Similar to our findings from last year’s Wealth Insights Report, concerns over a volatile future in 2023 continue to persist.
This year, “inflation and the increase in the cost of goods and services” remained the biggest financial concern for respondents in both Singapore (86%) and Hong Kong (66%) across all age categories.
Older Millennials and younger Gen Xs are most often the sandwiched generation having to care for young children and elderly parents. With more financial responsibilities on their shoulders, the heat of inflation packs the greatest punch for this group. Singapore Millennials, in particular, are also concerned that their salaries will not keep up with rising expenses (68% vs 59% for Gen Zs).
A silver lining is that millennials are more likely to adopt a dollar-cost averaging approach to investing — this shows they are injecting discipline into their investment approach.
This year, “inflation and the increase in the cost of goods and services” remained the biggest financial concern for respondents in both Singapore (86%) and Hong Kong (66%) across all age categories.
Older Millennials and younger Gen Xs are most often the sandwiched generation having to care for young children and elderly parents. With more financial responsibilities on their shoulders, the heat of inflation packs the greatest punch for this group. Singapore Millennials, in particular, are also concerned that their salaries will not keep up with rising expenses (68% vs 59% for Gen Zs).
A silver lining is that millennials are more likely to adopt a dollar-cost averaging approach to investing — this shows they are injecting discipline into their investment approach.
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Key Insights
Inflation rates in Singapore and Hong Kong have eased slightly – Singapore’s annual inflation rate retreated to 6.3% in February 2023 from 6.6% in the previous month, while Hong Kong’s YoY inflation rate fell to 1.7% in February from 2.4% in January. Evidently, this decline has not sufficiently alleviated the worries of consumers. Similar to our findings from last year’s Wealth Insights Report, concerns over a volatile future in 2023 continue to persist.
This year, “inflation and the increase in the cost of goods and services” remained the biggest financial concern for respondents in both Singapore (86%) and Hong Kong (66%) across all age categories.
This year, “inflation and the increase in the cost of goods and services” remained the biggest financial concern for respondents in both Singapore (86%) and Hong Kong (66%) across all age categories.
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Regionally, as different countries reopened their borders, Hong Kong has had to endure the drawn-out pains of tougher restrictions. The recent months of rapid COVID-19 recovery and reopening of China’s economy have definitely given that positive boost for Hong Kongers looking to put the darker days behind them.
There is data to support this theory; collectively, Hong Kong respondents are significantly more confident (53%) of economic recovery as compared to their Singapore counterparts (39%).
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They are also more optimistic (70%) about their own financial health in 2023 (vs 57% for respondents in Singapore).
These bullish sentiments about their personal financial health and positive view on the global markets appear to have a spillover effect on how they intend to manage their wealth. For instance, the investment risk appetite of respondents in Hong Kong is comparatively higher, with 54% of them willing to take some risks to grow their capital, as compared to 41% in Singapore.
There is data to support this theory; collectively, Hong Kong respondents are significantly more confident (53%) of economic recovery as compared to their Singapore counterparts (39%).
‍
They are also more optimistic (70%) about their own financial health in 2023 (vs 57% for respondents in Singapore).
These bullish sentiments about their personal financial health and positive view on the global markets appear to have a spillover effect on how they intend to manage their wealth. For instance, the investment risk appetite of respondents in Hong Kong is comparatively higher, with 54% of them willing to take some risks to grow their capital, as compared to 41% in Singapore.
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Regionally, as different countries reopened its borders, Hong Kong has had to endure the drawn-out pains of tougher restrictions. The recent months of rapid COVID-19 recovery and reopening of China’s economy have definitely given that positive boost for Hong Kongers looking to put the darker days behind them.
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The global pandemic has ostensibly contributed towards, and reinforced the importance of both physical and financial well-being and staying committed to investment goals.
While it is heartening to note that respondents who wish to invest more in 2023 are planning to do so to build a more robust retirement nest egg, and understand that inflation is eroding the value of their savings, some investment-related data points are still worrying.
On their main financial-related goal for 2023, a majority of respondents in Hong Kong (62%) and Singapore (68%) respectively cited that they want to save more money. At an average interest rate of less than 1% for most savings accounts, the effect of high inflation will quickly erode the value of their savings.
While it is heartening to note that respondents who wish to invest more in 2023 are planning to do so to build a more robust retirement nest egg, and understand that inflation is eroding the value of their savings, some investment-related data points are still worrying.
On their main financial-related goal for 2023, a majority of respondents in Hong Kong (62%) and Singapore (68%) respectively cited that they want to save more money. At an average interest rate of less than 1% for most savings accounts, the effect of high inflation will quickly erode the value of their savings.
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Contrary to popular belief, inflation doesn’t just hurt someone who is retiring or has retired. For Gen Zs (significantly those in Hong Kong, with 74% choosing “saving money” as their top financial goal) who are parking money aside for a down payment on their first home, or Millennials saving up for their children’s university funds, their resultant purchasing power will be further eroded in the longer-term horizon if they decide to only leave these funds in their savings account.
The study also noted that respondents who don’t currently own any investment assets and have no investing experience are also those more likely to “invest when they feel the time is right” (51% vs. 31% in Hong Kong; 66% vs. 50% in Singapore). This worrying habit of timing the market highlights the need for greater financial education.
Amid a high inflationary environment and fluctuating market conditions, investors may want to consider inflation-hedging assets. More importantly, they should hold fast to the core tenets of investing — maintaining a well-diversified portfolio, ensuring investments remain aligned with long-term goals, and to stay invested even during times of volatilities.
The study also noted that respondents who don’t currently own any investment assets and have no investing experience are also those more likely to “invest when they feel the time is right” (51% vs. 31% in Hong Kong; 66% vs. 50% in Singapore). This worrying habit of timing the market highlights the need for greater financial education.
Amid a high inflationary environment and fluctuating market conditions, investors may want to consider inflation-hedging assets. More importantly, they should hold fast to the core tenets of investing — maintaining a well-diversified portfolio, ensuring investments remain aligned with long-term goals, and to stay invested even during times of volatilities.
Read less
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The global pandemic has ostensibly contributed towards, and reinforced the importance of both physical and financial well-being and staying committed to investment goals.
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Other Key Insights
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