Retirement is not the top priority for new money

19% of those in the 25-34 year age bracket keep their savings in cash at home

Fixed deposits and savings accounts are the preferred choice of investment instruments for the emerging affluent, according to Standard Chartered’s ‘The Race to Save’ report. 

The emerging affluent are those earning enough to start saving. If these investors start using equities along with other instruments, they could increase the return on their savings by 48 per cent over a 10-year period. In fact, 19 per cent of those in the 25-34 year age bracket keep their savings in cash at home. 

The top priority for the emerging affluent is children’s education (19 per cent) and buying a home (14 per cent). Retirement does not feature among top priorities, even for those in the 45-55 age group. 

“There is an expectation that the younger generation will support their parents during retirement,” the report states.