Younger Danes turning away from equities

Jonathan Boyd
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Younger Danes turning away from equities

Figures published by the Danish Investment Association, part of Finance Denmark, suggest that Danish investors under the age of 50 have been turning away from the equity asset class since the financial crisis of 2008.

The Association suggests that this follows the hit to personal finances of those in the 25-50 age bracket, where it has seen a 20% decline in those investing in equities over the 2008-18 period. This suggests that the uncertainty sparked by the financial crisis is yet to release its grip on Danish people, the Association added.

The share of Danes over the age of 18 investing in equities and/or investment funds was rising in the years leading up to the financial crisis, but has since fallen. It is a trend that is noted regardless of age, location or income, but is most noteable among the younger generation.

Of those aged 30-3,  around 20% invested in equities in 2008, but just 14% of this age group is estimated to invest in equities today. That is equivalent to a 30% fall over 10 years. 

Søgaard Holm, director of Investments and Savings at Finance Denmark, said the figures suggest Danes are yet to shake off the effects of the financial crisis, despite the fact it occurred some years ago, and that there have been several years of strong economic growth, where Danish wages and savings have been rising strongly.

She said this was in may ways a shame, particularly for the young, because they have a long term investment horison that can help deal with risks in investments, and because they need to deal with long term lower rates. There is a political imperative to increase the interest in investing among younger people, she added.

 

Jonathan Boyd
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Jonathan Boyd

Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope.