Investors expect to retire 3 years earlier than non-investors: Survey

The retirement expectation gap is more pronounced in the case of investors with allocations to private market assets, who expect to retire 9 years earlier than non-investors, the survey by global market research firm YouGov said.

The survey, commissioned by Singapore-headquartered private market exchange ADDX, has covered respondents from Europe and Asia.

According to the poll, the average expected retirement age is 62.1 among non-investors and 59.2 among investors.

For those who invest in the private markets, the average expected retirement age is lower still, at 53.5.

In total, just 19 percent of people who do not invest expect to retire before the age of 60, compared to 31 percent of people who invest.

For people who invest in private market assets, this figure goes up to 47 percent.

Commenting on the survey findings, ADDX CEO Oi-Yee Choo said not investing has serious consequences.

“It reduces your buying power and lifestyle options. In the long run, it might also mean you have little choice but to extend your working life in order to adequately fund your retirement,” she said.

Significant gender gap in investment behavior

Globally, 29 percent of respondents do not invest. The gender gap is significant, with nearly 4 in 10 women – or 37 percent – saying they do not invest, compared with just 2 in 10 men who said the same.

The gender gap translates into a difference between the retirement expectations of men and women – with 76 percent of women expecting to retire after the age of 60, compared with 68 percent of men.

The gender retirement age gap exists in both Europe and Asia. On average, women expect to retire at 61.1, compared to 59 for men.

By age group, the share of non-investors was also higher among Generation Z at 32 percent, Baby Boomers (38 percent) and respondents from London (48 percent).

By contrast, only 13 percent of respondents from Hong Kong are non-investors.

Regional findings: Asian investors look for safer options

The survey also uncovered regional differences in investment instruments.

Investors from Asia expressed a preference for fixed deposits, with about 1 in 2 perceiving the asset class as a core component of their investment portfolio.

Nearly half of respondents from Singapore (46 percent) and Hong Kong (47 percent) said they would choose fixed deposits as one of their top three investments.

Respondents from Hong Kong also leant heavily toward stocks, with 60 percent choosing that option as one of their top three investments.

In contrast, investors from Europe preferred a more balanced allocation across asset classes.

For London investors, interest was consistent across fixed deposits (28 percent), stocks (30 percent), bonds and fixed income (27 percent), as well as funds (21 percent).

Investors in Frankfurt were slightly more keen to take part in funds, with 40 percent of respondents indicating it as a top three investment choice.

Of the regions covered in the survey, Singapore respondents were the most future-oriented. Asked what they would do if they unexpectedly inherited $100,000, 39 percent of Singapore respondents said they would set aside 90 percent to 100 percent of the sum to invest, compared with 22 percent in Hong Kong, 33 percent in Frankfurt and 32 percent in London.