Singaporeans target ambitious 8.4% annual investment return: BlackRock

SINGAPOREANS have ambitious savings and investment targets, aiming for an annual return of 8.4 per cent, said asset manager BlackRock as it released the results of an online survey of 1,000 Singapore residents.

However, they are holding too much cash, which makes up nearly half of their savings and investments.

What would encourage them to move out of cash into investments are guaranteed returns (53 per cent), knowing they won't lose their initial investment (45 per cent) and monthly dividend payouts (38 per cent).

Nevertheless, nearly three-quarters surveyed say they hold on to at least one income-generating product, the most common being dividend-generating stocks.

Concerns remain about the high cost of living, notably healthcare costs.

Where financial priorities are concerned, Singaporeans begin their careers saving for a home, then for their children's education, and finally for retirement.

Some 36 per cent of Singaporeans save a fifth or more of their monthly income for retirement, with older Singaporeans more likely to do so.

About 56 per cent of those surveyed say they feel positive about their financial future. Those least likely to feel positive were aged 35-44, where 46 per cent of those interviewed said they were positive.

Meanwhile, 60 per cent of those aged 25-34 said they were positive. This is "probably because they feel relatively financially unencumbered", BlackRock said.

The survey was part of the BlackRock Global Investor Pulse Survey, a research study of over 31,000 interviews across 20 countries executed by independent research company Cicero Group.