EFAMA has published its “Household participation in Capital Markets. From savers to investors – current challenges, recent progress, and factors affecting the result”. The report analyses how European households allocate their financial wealth between bank deposits and capital market instruments, and examines the main factors influencing this allocation. This edition also includes an online dashboard with detailed information by country.

• European pension adequacy is increasingly under pressure. The replacement rates of public pensions will worsen in many countries, with the overall EU rate expected to fall from 46% in 2026 to 38% by 2070.
• The proportion of European household wealth held as deposits has worsened over time. In 2015, deposits were 37% of total assets, whilst in 2025 they stand at 40%. 
• European households are effectively losing money on deposits. The opportunity cost of keeping EUR 10,000 in deposits rather than investing it in funds from 2014-2025 amounted to approximately EUR 5,131. 
• There is a small upward trend in household allocations to investment funds, reaching a historical high of 14% in 2025. 
• Households are becoming less likely to put new money into deposits in recent years. From 2015-2019, deposits averaged 60% of new financial acquisitions, versus 45% post-2020.
• There are many levers that can be used – in conjunction – to improve household investment in capital markets, these include pension design (including auto-enrolment), savings and investment accounts (SIAs), tax-based incentives, financial literacy, and reducing complexity.

The report also highlights:

• Only five European countries have auto-enrolment in place today. Therefore a good number of European countries currently without auto-enrolment schemes in place have scope for significnat future improvements. 
• To date, fourteen European countries have implemented SIAs, with Poland and Slovenia creating ones during 2026 and another expected in Ireland in 2027. 
• Adequate tax incentives are crucial for encouraging retail investment in capital markets.

• The Netherlands has the highest financial literacy score within Europe, contributing to a lower level of assets held as deposits. There is likely much that other European countries can learn from their example.

   

You can access the accompanying country-level dashboard, here.