Europeans increasing investment but €1.17trn ‘wealth gap’ remains

Europeans are investing more but could have accumulated an additional €1.17trn of wealth if a quarter of their deposit flows since 2002 had been invested in funds, analysis from ING Research has shown.

The study, which used the historical returns achieved on household portfolios rather than a selected fund or market index, explored how European policymakers could mobilise household savings into investments.

It surveyed adults in the UK, Belgium, France, Germany, Italy, the Netherlands, Poland, Romania, Spain, Switzerland, Türkiye, and Australia, and argued that Europe’s growing savings could become a powerful source of investment capital if more money gradually moved from precautionary savings towards productive investment.

While European households devoted a smaller share of income to financial wealth accumulation than their US counterparts between 2010 and 2021, ING found a “significant reversal” after 2021.

European households now only save around 6 per cent of their disposable income in financial form, around twice the US rate and far above pre-pandemic norms.

Despite this, balance sheets still reflect decades of deposit-heavy allocation, with deposits accounting for 62 per cent of liquid household assets, while US households hold around five times more in market-based investments than in deposits.

ING estimated that if Europeans had invested just a quarter of the money they put into deposits since 2002 into investment funds, household wealth could have been €1.17trn higher by 2025.

If this money had been invested in listed equities, household wealth could have been €2.79trn higher.

The report highlighted that a shift was already underway, as since 2025 Europeans have been directing more savings into stocks, bonds, and funds than bank deposits.

Amid relatively higher returns on investments, the share of deposits has fallen from 67 per cent of liquid household assets in 2019 to 62 per cent in 2025, its lowest share since 2008.

Investment funds, including ETFs, accounted for 23 per cent of surveyed countries’ liquid assets in 2025, the highest proportion since the start of the 2000s.

Among European households that have savings, half are already investing and a further 30 per cent said they would consider investing in the future.

Younger generations were found to be more positive about investing than older generations, with approximately 82 per cent of Europeans under 45 already investing or considering doing so, compared to 57 per cent of those aged 65 and older.

“Countries such as Sweden, Denmark and the Netherlands show that investment behaviour is shaped by institutions, not culture,” said ING Research chief economist and global head of research, and report author, Marieke Blom.

“The success of the US 401(k) system reinforces that point: when governments and employers create the right incentives, households participate in capital markets at scale.”

Despite growing investment participation and interest, 42 per cent of Europeans still believe that investing was ‘like gambling at a casino’.

“The irony is that the basic principles of successful investing are actually quite simple: diversify, invest for the long term and don't trade too much,” said Blom.

“Yet many people, including experienced investors, struggle to follow them. They still tend to sell when markets fall and remain heavily biased toward familiar assets close to home.

“Europe knows what is in the policy toolkit and has a large pool of potential investors. More savings are flowing into investments, countries such as Germany are introducing new incentives, and younger generations are far more willing to invest than older ones.

“The transition from saver to investor is already underway.”

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