Source:
Apple Intelligence:
- Retirement Savings Goal: A 65-year-old retiree would need a nest egg of at least S$550,000 to meet expenses based on “conservative needs” for 20 years.
- Younger Investors’ Savings: Younger investors are saving the smallest proportion of their monthly income for investment among all pre-retirement age groups.
- Younger Investors’ Investment Strategy: Younger investors who do start planning early are overly conservative and concentrate more than half their investments in fixed-income instruments.
- Investment Habits of Young Investors: Investors aged 25 to 44 invest the smallest proportion of their monthly income (15-17%) among pre-retirement age groups.
- Investment Allocation of Young Investors: Young investors tend to be overly conservative, allocating over half their investments to fixed-income instruments like T-bills and SSBs.
- Recommendation for Young Investors: Young investors are advised to allocate a larger portion of their investments to equities for potentially higher returns and consider diversifying into global and regional equities.
- Investment Performance Comparison: Equities historically offer significantly higher returns than bonds, with a 10-15% return over 15 years compared to bonds’ 0.7%-2% return.
- Equity Investment Advice: Younger investors should embrace equities despite volatility, as a long-term investment horizon mitigates short-term fluctuations.
- Retirement Income Generation: Older investors should focus on building passive income streams, such as unlocking equity from property, to ensure a sustainable retirement income.
Opinion:
I do agree that younger investors are taking too less risk. Just a personal feeling.
Everyone's "enlightenment" will occur differently.
I think wider reading and research will make the process faster.
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