People & Money 2020
We believe the BlackRock People & Money report1 is about discovery, truth and opportunity. As the world changes, so does people’s thinking about money. That’s why we traveled the globe to talk to them about this complicated relationship. This is their story. And the more we listen, the better we can act.
Paragraph-1
Paragraph-2,Multi Column Teaser-2,Paragraph-3
Paragraph-4,Multi Column Teaser-3,Paragraph-5
Paragraph-6
Sustainability gets the green light
Singaporeans believe that it is not enough to just screen out the bad, people want to advance their ideals.
67% in Singapore are interested in making investments that address the E,S or G issues they care about.
Nearly 1 in 2 non-investors said sustainable options would encourage them to invest for the first time.
Spread the word
- Only 43% of Singaporeans are familiar with sustainable investing, but when made aware 69% find it appealing.
- 26% of people in Singapore have never heard of the term.
- 50% of men in Singapore are familiar with the term sustainable investing, but only 34% of women say the same.
A world of myths
Lack of knowledge leads to misconceptions. Over half of Singaporeans think sustainable investing translates to higher costs (63%) sacrificing returns (56%), and higher risk (54%).
Singaporeans are also unaware of how sustainability is measured (75%). This is consistent across age groups, regions and investors vs. non-investors.
The most important ESG issues
Environmental issues are the main concern, more specifically pollution and waste (63%) and climate change risk (60%).
Singaporeans are more likely to feel strongly about working practices in the developing world than the APAC average (34% vs. 26%).
Sustainability: The megatrend
We found that 4 in 5 people are interested in investing in key megatrends. Climate change is most appealing (32%), followed by technological advancement (25%) or emerging wealth (13%).
Removing old walls
Status quo and old financial systems are keeping new investors away. As an industry, we can work to become more in tune with society. The more obstacles we remove, the more financial futures we can build.
The last taboo
Singaporeans' relationship with money is complicated. Money is something people still feel reluctant to discuss. We must help people to feel comfortable discussing their money issues by changing the narrative to be open, trusting and inclusive. It’s how we will bring financial well-being to more people.
Cash vs. Investments
We must change perceptions to change the balance:
- Cash makes people feel secure (52%), safe (50%), and in control (49%)
- People view investing as risky (41%)
- Singaporeans see cash as the way to preserve their wealth, and investments as the way to grow their wealth.
Here’s what Singaporeans want to deploy their cash or investments for:
Technology gets a big thumbs up emoji
People really see technology as an advantage when managing money. We found that more and more, investors are becoming reliant on it. They see access, convenience, clarity and cost efficiency as key benefits.
But humans still get a big thumbs up, for now
When it comes to managing money, human expertise and interaction is still important: today, Singaporeans prefer a mix of tech and human support. But there is a shift towards technology-based preferences for the future.
Thinking forward
We asked people what would have helped them feel better about past financial decisions. They mentioned more tech solutions:
The changing realities of retiring
The meaning of retirement is evolving and, with it, so are expectations for the future. It’s no longer an idyllic final destination, but rather a modified working state.
People want to maintain their current lifestyle, and know they need to do more in order to do that. In fact, 65% say they would like to have extra money to full enjoy their retirement
Worried about the future
Even though 2 in 3 in Singapore report they have started saving for retirement, they don’t always feel confident or prepared.
What we can do
We need to maintain the urgency to invest. The goal hasn’t changed: to protect people later in life. Though people know their retirement savings may not be their only income source in “retirement,” this can’t stop people from contributing now.
This survey* was fielded between November 2019 and January 2020, with 1,034 respondents in Singapore. We note throughout where the COVID-19 crisis has exacerbated the trends or reinforced the insights into people’s relationship with money.
Income for every outcome
Delivering the income you need through our range of investment solutions.
Sustainable investing rises amid market volatility
Brian Deese, Global Head of Sustainable Investing, discusses the strength of sustainable investing so far this year and its outlook for the rest of 2020.
