A recent report by HSBC reveals that affluent investors in Singapore estimate they will need an average of US$1.39 million to retire comfortably, a figure that exceeds the global average of US$1.05 million. This amount is also higher than the retirement targets cited by investors in Hong Kong (US$1.11 million), Australia (US$1.23 million), and the United Arab Emirates (US$1.17 million). The findings are based on a survey of approximately 11,000 affluent investors aged 21 to 69, each with investable assets between US$100,000 and US$2 million, across 12 global markets.
The study also identifies Singapore as one of the top three destinations globally for opening overseas investment accounts, alongside the United States and Hong Kong. This highlights Singapore’s continued appeal as an international financial hub.
In terms of investment preferences, Singapore’s affluent investors are adjusting their portfolio allocations. While cash remains the largest single asset class at 24 percent, its share has decreased compared to the previous year. Meanwhile, allocations to gold and other precious metals have increased by 40 percent year-on-year. There is also a noticeable rise in interest in alternative assets, such as private equity and hedge funds, as investors seek greater diversification amid ongoing economic uncertainty and market volatility.
Despite concerns about rising living costs and economic uncertainty, nearly two-thirds of affluent investors in Singapore express confidence in achieving their long-term financial goals. This optimism is especially pronounced among younger investors, with about 70 percent of Gen Z and millennials indicating confidence, compared to 60 percent among Gen X and Baby Boomers. The report also notes a shift in financial priorities, with saving for leisure and personal well-being now emerging as the top objective, reflecting changing attitudes towards wealth and lifestyle among Singapore’s affluent population.