What is a Singaporean woman's top financial goal?
Study shows that they prioritise their investments.
Nearly half or 46% of women in Singapore said investing more money is their top goal but only 36% of them hold an existing investment, the latest study from online financial planning solution, Standard Chartered Goals Planner (SC Goals Planner), showed.
The SC Goals Planner study also showed that younger women are more proactive in mapping out their financial plans, with 40% of those who started financial planning are aged 35 years old and under.
It also noted that women are disciplined savers, with 83% of them saving at least 20% of their income monthly, and 63% have prepared more than 12 months of emergency funds. Meanwhile, women who hold wealth management products with the Standard Chartered Bank showed a strong preference for endowment products, followed by equities and unit trusts.
For all age groups, many women are still relying on their savings products as their source of retirement income, rather than investment products which may generate higher returns.
SC Goals Planner insights showed that these results are concerning as 51% women still face a retirement shortfall based on their desired retirement age and future value of their savings and investments, with 12% expecting to run out of money before retirement.
Data from Singapore’s Department of Statistics showed that women continue to have a life expectancy at 86.1 years, which is higher compared to men with 81.5 years. If women live longer and their wealth draws down over a longer period of time, there is a risk that they might not have enough funds to meet their retirement and financial goals, especially with inflation eroding the real value of cash holdings.
Clare Tang, head of wealth client engagement, advised women to use financial planning tools to assist them in controlling their finances.
“A small step forward in the investment journey can equate to a big step needed to cultivate the emotional security of financial freedom, and a great way to begin is to set aside a portion of savings into globally diversified products such as Exchange Traded Funds or Unit Trusts that are aligned with their risk appetite,” added Tang.
The study, which sought to offer insights to understand women’s financial goals, challenges, and gaps in funding their golden years, involved about 1,000 female users’ household income, assets, savings, investments, target retirement age and financial goals.