The negative interest period is over. However, at most banks a savings account still yields little or no returns. It’s not long ago that impressive compound interest calculations could be used to teach schoolchildren how much it costs to save in the long run.
Anyone who wants a good return today cannot avoid investing their money. However, a new survey by the Lucerne University of Applied Sciences and Arts on behalf of Postfinance shows that only half of Swiss households currently invest in securities. More than 3,000 people were interviewed from all over the country.
Young women are also more reserved.
What is striking is that it is women who abstain from the above-average number of cases. 60 percent of men invest in securities, while 40 percent of women invest. For Andreas Dietrich, 46, the finance professor who was responsible for the research, it is particularly surprising that there has been almost no change over the generations: “Usually, even very well-educated young women invest much less money than their male peers.”
The main reasons for not investing are apathy, ignorance and fear: 45 percent of men say they are very or very interested in what is going on in the financial markets, compared to only 19 percent of women. Only 41 percent of men and 65 percent of women agree with the statement that they are generally ignorant of investment products. The situation is similar to the statements about fear: 60 percent of women are afraid of making mistakes while investing, 42 percent of men.
“In old age money may be missing”
For Dietrich, one is clearly related to the other: “If I don’t know how much return I can expect from which investment product, then I don’t invest either, I leave my capital in a bank account.”
This can have noticeable ramifications over the years, especially for low- and normal-income earners: “This money may be lost later on in old age, and there is a greater risk of having to tighten your belt.”
Andreas Dietrich thinks the risks in the stock market are relatively low. It is essential for average investors to plan for a longer time frame, such as 10 to 20 years, and not be dependent on the capital invested in the short term.