More Singaporeans invest in ETFs but show low retirement confidence

Only 43% identified funding retirement as a key investment goal.

Nearly half, or 49%, of Singapore investors now hold exchange-traded funds (ETFs), as trust for digit investing grows, according to a study by Amundi.

ETF adoption is highest amongst Singapore investors aged 31 to 40 at 69%, whilst more than half also said they plan to invest in ETFs over the next year.

On average, 31% of the 18,000 people Amundi surveyed globally invest in ETFs.

Diversification was the most commonly cited reason for investing in ETFs, at 51%, followed by lower fees at 36%.

Despite growing trust in digital channels and investment in ETFs, only 19% of Singaporean respondents say they are very confident about funding their retirement or securing their long-term finances, according to Amundi.

Despite this high level of engagement, retirement remains a source of uncertainty, the study showed.

Whilst 53% expect retirement income to come from personal savings and investments, only 43% identified funding retirement as a key investment goal.

Amundi said the results place Singapore amongst markets with relatively high financial literacy but lower investor confidence.

Majority or 66% of Singaporeans have also committed to a digital-only approach when investing, whilst 87% access investment information, advice or guidance through digital channels, compared with 75% globally.

Online brokerages, investment platforms and neobrokers are also particularly popular in Singapore, with 55% of respondents using them, the highest level amongst the markets surveyed in Asia.

Artificial intelligence (AI) is gaining traction as well, with 55% of Singapore investors saying they use AI tools at least sometimes to help with investment decisions, whilst 31% said they trust AI agents.

The study surveyed 18,000 retail investors and savers across 26 countries.