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J.P. MORGAN ASSET MANAGEMENT - Saver to investor

Post-Pandemic Investment Market Outlook



Turning savings into investments


Households across Europe have accumulated hundreds of billions of euros of extra savings as repeated Covid-19 lockdowns have limited their opportunities to spend. The question now is whether this money will be spent as soon as the pandemic is over, or whether attitudes towards saving and investing have permanently shifted.


To find out, we asked over 5,000 savers across 10 European countries to tell us how they feel about saving and investing. The results were split between men and women to allow for comparisons. What we discovered shines a light on some of the areas that will matter most if savers are to meet their financial goals in the post-Covid world.


Financial independence requires a plan

Today’s low interest rates mean that only investing offers the opportunity to meet long-term savings goals. Yet a third of women and a quarter of men have no investments. The biggest difference between investors and non-investors is that most investors have some kind of financial plan, while a significant proportion of non-investors have no plan whatsoever.

48% of women non-investors do not have a financial plan.


“Making a financial plan.” Five-step strategy provides a straightforward approach to nailing down a financial plan – and getting started with investing while you’re at it.



Investors have better financial well-being

Investing is more rewarding than saving, not just financially, but also in terms of overall self-worth. Investors are more likely to believe they will be better off in three years’ time than non-investors, and therefore tend to be more confident about their financial situation. Financial autonomy is linked to greater self-esteem, which in turn is a major contributor to overall well-being.

51% of men investors think they will be better off in three years.


“Getting started with investing is much less daunting than you think.” Why you should consider investing, and three reasons why it's easier than you think.


Complexity is the biggest obstacle to investing

Respondents believe investing is more challenging and requires a larger commitment than saving. There is a general fear of losing money and some concern about keeping track of how investments are performing. The perceived complexity, lack of transparency and lack of control need to be addressed to convert savers into investors and to convince current investors to increase their holdings.

64% of women non-investors say investing is too complicated.


“Three common investing pitfalls - and how to avoid them”

“Post-Pandemic Investment Market Outlook”


Sustainable investing has a significant role to play

Sustainable investing could provide a significant incentive to invest, for non-investors and investors alike. A quarter of respondents said that they would have more confidence in investing if they knew their investments were contributing to a more sustainable world. Almost three quarters of respondents overall believe sustainable investing is important.

72% of women surveyed believe sustainable investing is important.


“Invest in what matters to you with sustainable investing”


Social attitudes to investing are changing

There is significant appetite among non-investors to move some of their savings into investments, while many current investors say they will invest more. Unlocking this future investment potential will require a number of key developments, including the provision of better financial education for first-time investors, help with long-term financial planning, and clearer communication around investment performance.

35% of men non-investors would consider moving a third of their savings to investments


“Reasons to start investing”



Read the report



Important Information:

This document is a general communication being provided for informational purposes only. It is educational in nature and not designed to be taken as advice or a recommendation for any specific investment product, strategy, plan feature or other purpose in any jurisdiction, nor is it a commitment from J.P. Morgan Asset Management or any of its subsidiaries to participate in any of the transactions mentioned herein. Any examples used are generic, hypothetical and for illustration purposes only. This material does not contain sufficient information to support an investment decision and it should not be relied upon by you in evaluating the merits of investing in any securities or products. In addition, users should make an independent assessment of the legal, regulatory, tax, credit and accounting implications and determine, together with their own professional advisers, if any investment mentioned herein is believed to be suitable to their personal goals. Investors should ensure that they obtain all available relevant information before making any investment. Any forecasts, figures, opinions or investment techniques and strategies set out are for information purposes only, based on certain assumptions and current market conditions and are subject to change without prior notice. All information presented herein is considered to be accurate at the time of production, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted. It should be noted that investment involves risks, the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested. Both past performance and yields are not reliable indicators of current and future results.



March 2022

Please note that these are the views of Market Insights team of J.P. Morgan Asset Management and should not be interpreted as the views of RL360.

Authors


J.P. Morgan Asset Management


March 2022


Please note that these are the views of J.P. Morgan Asset Management and should not be interpreted as the views of RL360.

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