Planning for retirement feels daunting now.
There are healthcare risks to worry about, such as the Covid-19 pandemic which has disrupted travel around the world. There are also geopolitical tensions, which have led to trade wars among some of the major powers. Several analysts warn the next few years could see a reversal of the globalisation trend that has propelled Singapore’s development over the past 55 years.
It is no wonder that Singaporeans feel far more comfortable about saving than investing.
Many expect to work beyond retirement.
And offers similar returns.
The good news is sustainable investments offer similar returns as their traditional peers. It also doesn’t necessarily come at higher costs and higher risks, contrary to misconceptions held by many Singaporean investors.
This is because companies with a strong focus on ESG factors tend to be more resilient in difficult periods. Investing sustainably allows investors to build portfolio resilience without comprising on returns.
Sustainable investing has proven resilient.
BlackRock defines sustainable investing as combining traditional investing with material environmental, social, and governance-related (ESG) insights to improve long-term outcomes for its clients.
According to a study carried out earlier this year, 51 out of 57 sustainable indices did better than their broad market counterparts in the first quarter of 2020. These indices track the performance of companies with good ESG scores. BlackRock’s analysis of ESG indices and ESG-managed funds arrived at a similar conclusion.
Take the first step.
Retirement planning might feel daunting in a post-pandemic world, but it doesn’t have to be.
You can start small and select investments that add resilience to your portfolio as a hedge against volatility.
BlackRock has a range of income solutions for any outcome you seek, be it stable income and portfolio resilience, or higher income and capital growth over the longer term.
1. Together with its partner Kelton, BlackRock interviewed 1,034 people in Singapore ranging from 25 - 74 years from November to December 2019.
2. Source: Morningstar, April 8, 2020
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Not surprisingly, retirement is a major source of concern for many Singaporeans.
A recent survey by BlackRock showed that while two out of three people in Singapore have started saving for retirement, more than three quarters fear they will outlive their savings. Many, in fact, expect to work in some capacity after retirement, significantly more than those who hope to travel or take up a new hobby.
Four out of five Singaporeans also want their investments to make a positive impact.
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In Singapore, this material is issued by BlackRock (Singapore) Limited (company registration number: 200010143N). This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
Investment involves risks. Past performance is no guarantee of future results. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. International investing involves additional risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. The two main risks related to fixed income investing are interest rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the issuer of the bond will not be able to make principal and interest payments.
This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. [Index performance is shown for illustrative purposes only. You cannot invest directly in an index.] Company name is only for explanatory purposes and does not constitute as investment advice and is subject to change.
©2020 BlackRock, Inc. All Rights Reserved. MKTGH0920A-1323208
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Where do Singaporeans want to allocate their funds?
What are Singaporeans’ expectations about retirement?
Find out more about what sustainable investing is, and what Singaporeans think about sustainable investing.
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