German end investors more cautious than investors in other European markets

German investors are also more worried about future retirement income and the cost-of-living crisis, research by Fundamental Media found

Key points:

• German end investors are more cautious than their counterparts in other European markets, as they consider most investment products more risky than profitable
• Like their UK counterparts, German respondents are more worried about their future retirement savings and the cost-of-living crisis than end investors in Italy and France
• Three in ten respondents are saving less than they did 12 months earlier, and the overall confidence in having enough savings when retiring decreased compared to 2018

German end investors are more cautious than their counterparts in other European markets, as they consider most investment products more risky than profitable, research by Fundamental Media has shown.

Unlike in Italy, France and the UK, where end investors consider most products to be more profitable than risky, German end investors only view ETFs, life insurance and, to a lesser extent, funds and bonds as more profitable than risky.

For our 2022 European end investors report series, we surveyed 1,070 end investors in the UK, 1,089 end investors in Italy, 1,163 end investors in Germany and 1,068 end investors in France.

Long-term capital growth is the main objective when investing for all age and wealth groups. However, younger and less wealthy respondents are more likely to also seek additional income. End investors tend to review their investment portfolio regularly, with 74% doing so at least once a quarter.

Cost-of-living crisis

Like their UK counterparts, German respondents are more worried about their future retirement savings and the cost-of-living crisis than end investors in Italy and France.

The challenges imposed by the current market environment are pushing almost 30% of German investors to review the type of investment products held to protect their investments. Older investors are the least likely to act and make changes to protect their investments.

Three in ten respondents are saving less than they did 12 months earlier, and the overall confidence in having enough savings when retiring decreased compared to 2018, with now only slightly more than half of respondents confident about their future retirement income. The main reason for not saving more is having a low income, which is also a big change from 2018, when the main reason was not wanting to sacrifice current spending.

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