"Global Investors Increase Savings After COVID-19... Expected Return Rate Forecasted at 11%"

Schroder Asset Management, 'Global Investor Study 2021 Survey'

[Asia Economy Reporter Minji Lee] Schroder Investment Management announced on the 7th that according to the results of the 'Schroder Global Investor Study 2021' conducted in March this year, investors sought economic stability by increasing savings after the COVID-19 pandemic.

This survey was conducted from March to May this year targeting more than 23,000 investors across 32 regions worldwide, including Korea, Europe, Asia, and the Americas. The survey respondents were limited to those planning to invest at least 10,000 euros (approximately 13.68 million KRW) within the next 12 months and who had made changes to their investment portfolios within the past 10 years.

According to the survey results, 74% of all respondents and 68% of domestic investors said they spent more time reorganizing their personal finances after COVID-19. This tendency was especially higher among investors with greater expertise. Among the expert-level investor group, 78% said they reconsidered their financial plans and actively responded amid uncertain market conditions, while only 66% of beginner-level investors reported reconsidering their financial situations.

Additionally, investors increased their savings despite high uncertainty last year. 79% of respondents said they achieved or exceeded their savings goals. By region, 83% in Europe, 74% in the Americas, and 80% in Asia reported exceeding their savings targets, while Mexico (60%) and South Africa (59%) recorded the lowest levels among surveyed countries. Notably, 71% of Korean investors responded that they saved more than before. The reason investors could save the target amount was that 59% of respondents reduced spending in non-essential areas such as dining out and travel.

As economic stability became more important due to COVID-19, 75% of investors expressed their intention to increase or maintain their savings even after lockdown measures are lifted. When asked about spending priorities after the pandemic, 43% of respondents chose real estate investment or purchase as their top priority. Schroder analyzed that this phenomenon is due to social distancing measures requiring people to spend more time at home and the expected expansion of flexible work policies such as increased remote work.

COVID-19 also influenced the attitudes of investors approaching retirement. Among respondents, 58% said they take a more cautious approach to retirement savings expenditures, and 88% of non-retirees expressed a desire to increase their proportion of retirement savings. Among Korean respondents, 53% said they hope to save more to accumulate retirement funds.

Furthermore, investors predicted that they could still achieve high expected returns despite the pandemic situation. When asked about the 'average annual total expected return over the next 5 years,' investors answered 10.7% for 2019 before the pandemic, 10.9% for 2020 when the pandemic spread, and 11.3% for this year, maintaining an 'optimistic outlook' on economic recovery.

A representative from Schroder Investment Management stated, “Due to COVID-19, investors have been reviewing their financial situations more closely and planning meticulously, regularly checking the value of their investment assets. This investment trend is expected to continue even after the lifting of COVID-19 lockdowns. Over time, the COVID-19 pandemic is regarded as both a crisis and an opportunity for investors worldwide.”

This content was produced with the assistance of AI translation services.