Singaporeans want to invest more, but life costs hold them back

Singaporean women are less likely than men to rank growth as their first investment priority.

One of the more striking findings is the decline in investment confidence among older Singaporeans.

Unlike Hong Kong, where confidence is highest among those aged above 55, Singapore and Australia show the opposite pattern.

In Singapore, 40% of those aged 18 to 24 said they were extremely or very confident about making investment decisions. The proportion fell to just 12% among those aged above 55.

The gender divide is also pronounced.

Singapore recorded the widest investment confidence gap among the three markets. While 35% of men said they were extremely or very confident about investment decisions, only 13% of women felt the same.

Women were also twice as likely as men not to invest, at 32% against 15%. They tend to worry about losing money and fear a lack of investing knowledge.

Among Singaporeans who already invest, men are also more confident than women.

As retirement approaches, the focus shifts from accumulating wealth to ensuring that savings can support a longer period of financial independence.

Yet many Singaporeans appear uncertain about how much they actually need.

The survey found that 76% of respondents here believed their retirement savings were below what they expected to need.

More concerningly, a third had never calculated their retirement savings target, while 40% have a retirement plan or simply picked a round number that felt right.

How people set their target matters, the Syfe report said. 

Those who picked a round number aim lower than those who worked it out. 

In Singapore, those who picked a round number have a median target of $700,000 to $999,999. This compares to $1 million to $1.99 million for those who based their target on their expenses. Hong Kong and Australia show the same pattern.

The average retirement savings across all sources, including CPF, rise with age. Gen Z – or those 14 to 29 years old – have an average of $61,000 in savings, compared with $192,000 among millennials (aged 30-45), and $455,000 among baby boomers (62 to 80 years old) and older.

Only 15 per cent of Singaporeans were working towards a traditional full retirement. The most popular aspiration was semi-retirement, at 27 per cent, while 13 per cent said they did not plan to retire at all.

This reflects changing attitudes towards retirement, with many expecting to continue working in some capacity rather than stop earning altogether.

Having a financial plan appears to make a difference to confidence. Singaporeans with a retirement plan were nearly twice as likely to feel confident about investing as those without one, at 32% versus 17%.

The survey highlights a broader challenge that while Singaporeans may recognise the importance of investing, many lack the confidence, financial clarity or resources to act on that intention.

Ultimately, investing is not a one-time decision made at the start of a career. It requires individuals to reassess their priorities as they buy homes, raise families, support parents and prepare for retirement, the survey suggests.

For Singaporeans, the challenge may not be persuading them that investing matters, but helping them feel sufficiently informed and confident to take part – and stay invested through the different stages of life.