The consulting firm Boston Consulting Group (BCG) has published the Global Wealth Report, a large wealth study that also allows conclusions to be drawn about the savings behavior of Germans. The picture is confirmed once again: Germans are unacceptable about stocks.
The authors of the study write that 40 percent of assets in Germany were in savings or cash in the past year. That is ten percent more than the average in Western Europe. Germans receive no or only minimal interest on this money, which is not attractive.
The financial assets of Germans increased overall from 2018 to 2019 – adjusted for currency effects by around 6.4 percent to 7.7 trillion US dollars. With this development, Germany is still in fifth place in a global comparison of total assets.
Asset increase in Germany due to good DAX development
Important note from Anna Zakrzewski, BCG partner and author of the study: “The increase is due on the one hand to the strong development of the Dax and on the other hand to the successful economic year 2019 with an increase in the gross domestic product for the tenth time in a row.” the author points out that the Germans would have missed a good chance of increasing their wealth in 2019 – because a lot is not invested in the stock market.
A study by the Deutsches Aktieninstitut (DAI) indicates that the share quota in Germany in 2019 was only around 15 percent. Only one in seven people in Germany has stocks or funds with which they can benefit from the development of the financial market. At the same time, the author of the study Zakrzewski also emphasizes: “In times of Corona, when higher volatility in the markets is to be expected, conservative investment behavior can, however, also be an advantage.”
Money: Savings plans are the basis for wealth in old age
But: Those who invest their money in the financial market over the long term need not worry about it. There has never been a period in which investors have suffered losses after having invested their money in the stock market for at least 15 years. On average, stocks achieve a return of around seven percent per year.
The sooner you start investing money in stocks or using a savings plan to save in funds or ETFs, the lower the risk of loss of value. Even small amounts of 25 euros or more are initially sufficient to benefit from the compound interest effect on the financial market in the long term. If you gradually increase the amount as your salary increases, you build the basis for wealth in old age.