Schroders Global Investor Study 2021

July 21, 2021 – New York, NY – The 2021 Schroders Global Investor Study found that despite the pandemic-induced market disruption, investors expect high levels of income and investment returns, especially as the importance of savings and financial wellbeing emerge as lasting legacies of the pandemic.

The flagship study, which surveyed over 23,000 people from 32 locations globally, found that the Americas are the most optimistic regions when looking at investment return expectations for the next five years, with an annual total return expectation of 12.5%.

Despite the challenges brought by the pandemic, investor confidence has soared to its highest level since the study began in 2016, contradicting last year’s survey data that found 67% of people anticipated that lower returns over the next year were likely imminent.

Financial wellness has become increasingly top-of-mind, with 76% of U.S. respondents agreeing that since the COVID-19 outbreak, they have spent more time thinking about their financial wellbeing and reorganizing their personal finances. The importance of personal savings will remain a priority post-pandemic, as nearly half of respondents (46%) plan to save more.

Over the course of 2020, 90% of U.S. respondents either met or exceeded their savings goals, due to factors including increased salary, change in personal circumstance, and less spending on non-essentials. However, there is significant variability across different regions in North America, more specifically in Canada (75%) and Mexico (60%) where respondents weren’t able to save as much as they had planned.

Once all lockdown restrictions have been lifted, the majority of U.S. respondents (54%) plan to increase their purchases, having managed to save more than planned. American respondents came out on top, as only 17% of Japanese respondents plan to spend more once lockdowns lift. Overall, global survey results show that we can expect to see higher rates of saving in the immediate future.

Post-pandemic priority purchases include investing in property, luxury purchases such as holidays, vehicles, special occasions, and events, and gifting to charities. The majority of U.S. respondents (52%) are eager to focus their spending on luxury purchases.

Tiffani Potesta, Chief Strategy Officer at Schroders North America said:

Now more than ever, financial wellness and stability have become integral to our overall wellbeing and success, and this is clearly exhibited through the results of this year’s survey. During a time when it felt as though nothing was in our control, many people zeroed in on their personal finances and took charge of their savings goals. As financial stewards, we are excited to see this trend, and it strengthens our confidence with investor resiliency as we enter this new phase. We’re seeing a light at the end of the tunnel and are optimistic about the future.”

To find out more about Schroders Global Investor Study 2021 and read the full report, please click here.

For further information, please contact:

Morgan Cozatchy:  mcozatchy@prosek.com, 646-818-9273

Note to Editors

In March 2021, Schroders commissioned an independent online survey of over 23,000 people who invest from 32 locations around the globe. This spanned countries across Europe, Asia, the Americas and more. This research defines people as those who will be investing at least €10,000 (or the equivalent) in the next 12 months and who have made changes to their investments within the last 10 years. Due to this threshold, Schroders acknowledges that this group and therefore the research findings are not representative of everyone’s experience of the pandemic.

Note: Figures in this document may not add up to 100 per cent due to rounding and multi-select options.

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*as of December 31, 2020

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