This study was conducted as part of the annual Endowus Wealth Insights Report. Focusing on investors across different age categories, the study seeks to provide greater insights into the overall investing sentiments of respondents, such as their aspirations, fears, and investment plans for 2022.
The set of data used in this report was obtained from a survey conducted between January to February 2022, with a sample size of 680 respondents from different age groups and backgrounds.
Findings were also further corroborated with data derived from Endowus’ client database, where only non-personally identifiable information (non-PII) data was used to substantiate findings. Any data from these sources will only be presented in an aggregated format, and will not be attributed to any specific individual.
Inflation woes and the corresponding rising cost of living dominate as the top concern for most respondents, as 45% of them have flagged it as their top finance-related worry for the year ahead.
Retirement adequacy follows behind (27%), as respondents have also cited the recent volatility and bleak market outlook that could potentially jeopardise their long-term retirement and investment plans. Job security-related anxieties arising from Covid-19 have tapered, though many have still ranked it as a top concern (12%) in their minds for the year ahead.
Unlike all other age categories, the impending GST increase and rising property costs are the top two concerns of respondents in their 20s — the looming GST hikes have emerged as a top concern for most respondents (58%) in their 20s, as they are just building their career and income. Respondents in their 20s who are likely emerging as new home-owners and/or first time property buyers, have cited rising property costs (13%) as a top ranked concern.
Inflation as a top concern (by relevant age group)
With more daily responsibilities on their shoulders, mid-career professionals and the sandwiched generation feel the heat of inflation — inflation woes and the rising cost of living pack the greatest punch for those in their 30s to 50s, as it ranks as a top concern consistently across these age groups. Specifically, this is the case for 50% of respondents aged between 30 and 39, and 36% of those aged between 40 and 54.
Retirement adequacy as a top concern(by relevant age group)
With retirement just in the foreseeable future, more can be done to prepare those aged 55 and beyond for retirement — many have realised the importance of better retirement adequacy, as it is the top concern for those in this age group. This is most apparent for those aged between 55 and 64, where most respondents (44%) have ranked retirement adequacy as a top concern.
Despite concerns around higher cost of living and more,the investment sentiments among respondents continueto remain high, with an overwhelming majority (~80%) planning to put more money into investments in the new year.
While concerns might vary, one thing is constant: respondents across all age groups have prioritised investing for their future as a top wealth goal for 2022, as many align on its importance.
Staying the course on financial prudence (i.e., investing more at 38% and saving more at 25%) remains the goal of choice for most respondents. With cost concerns ranking as their top worries, investors plan to put more money in the markets in 2022, and/or tighten their belts. Investors are also on the hunt to reduce cost/fees of investments.
Apart from factors such as transparency, the following factors ranked as the top three that influence respondents’ choice of an investment platform or provider to use. Firstly, credibility of the platform was selected by most respondents (69%) as their top factor for consideration when choosing an investment platform. The next factor was the consideration of costs and fees (13%), and then finally, projected returns (10%).
The popularity of digital investment platforms such as digital wealth platforms like Endowus and digital brokerages, among others, is on the rise. Among respondents who are currently not on any digital investment platform, 92% of respondents noted that they plan to start using them in 2022. By contrast, investors may be showing less interest in offline providers — more than half of the respondents who are currently using services offered by banking institutions and traditional brokerages say they will stop using such services.
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