Manulife has released key findings from its latest Investor Sentiment Index.

Millennials in Singapore are optimistic about their retirement prospects, but may benefit from guidance on how to realistically achieve their financial goals, according to research from Manulife.

A solid eight in 10 millennials believe they will be able to maintain or improve their current lifestyle after they retire compared to only 44 per cent of those over the age of 50, who anticipate being forced to make compromises.

Despite their optimism, however, just half of millennials are on track to achieve their financial goals (one of the lowest proportions in Asia), pointing to an opportunity for advisors to engage with this segment.

Indeed, many recognise that their retirement aspirations “may be challenged by financial and health concerns,” Manulife said. This cohort may also become the new “sandwich generation”, the firm added, as they juggle to care for both their children and their parents. Adding to this, half expect they will still be carrying debt or a mortgage.

The survey also revealed that although many millennials in Singapore continue to favour investing in property as a means of financial security, this may no longer deliver the returns they are hoping for.

Over two-thirds intend to buy a local property, with two in five planning to do so explicitly for investment purposes. However, Singapore investors are the least satisfied with their rental yields in Asia, with a satisfaction rate of just 58 per cent, the index shows.

“Overall in the last decade or so, we have seen yields falling across the board, be it rental, dividend or bond yields and the market has on the whole experienced higher volatility,” said Wendy Lim, chief executive at Manulife Asset Management (Singapore). “Against this backdrop, investors should build a diversified portfolio across asset classes instead of depending on one asset class or property alone to achieve their retirement goals.”