The latest Schroders Global Investor Study said high expectations of investors observed the world over “may indicate why over half of investors globally (51 per cent) stated they had not achieved what they wanted with their investments over the past five years”.

Geographically, North and South American investors indicated the highest annual return expectations at 12.4 per cent on average, compared with 10.9 per cent for Australian investors and 9.0 per cent for European investors.

Over 25,000 investors from 32 locations worldwide were surveyed for the study, which showed that around one in six investors globally are expecting at least a 20 per cent annual return on their investments.

“This is despite major stock markets – such as the S&P and FTSE 100 – all experiencing net falls during the previous year,” Schroders reported.

It noted that the average annual return of the S&P 500 since its inception in 1957 is less than 8 per cent.

The Australian statistics derived from the survey showed that domestic investors have reported a desired income of 11.5 per cent on average from their investments over the next year, but expect just 11 per cent, not taking into account cash savings or properties.

But in good news for Australian investors, especially for those expecting higher returns, nestegg recently reported that the ASX Accumulation All Ordinaries Index has provided investors with an 11.4 per cent annualised return since 31 December 1979. 

In Australia, desired income and expectations are also influenced by age, with Millennials desiring income of 12.9 per cent, versus Generation X’s hope for 10.8 per cent.

Baby Boomers reported an average expectation of 9.2 per cent, while investors who are 71 years-plus expect to receive 7.7 per cent in income generated through their portfolio.