Switzerland is one of the richest nations in the world. That doesn't stop its inhabitants from worrying a lot about money, according to the world's biggest asset manager.
The Swiss attach worry to the subject of money: 55 percent of them said their finances were their largest stress factor, according to an investor study released by U.S. asset manager Blackrock on Wednesday.
Health and work come second to personal finance as a primary worry for the Swiss, at 49 percent and 47 percent, respectively. To be sure, two-thirds of respondents reported they were doing fine in general.
But that number dropped to roughly one-third when they were asked how they felt they were doing with regard to their finances. The lack of confidence in Switzerland, where household debt is relatively low and 69 percent of the population saves for their pension privately, is astonishing.
Millennials Not Saving
One reason is that nearly three-quarters of those surveyed felt that financial health means being prepared to weather unexpected events, crises, and emergencies. The result is all the more surprising in that two-thirds of those surveyed described themselves as savers as opposed to investors.
Those born after 1980 – so-called Generation Y – aren't saving at the same rate. Forty-seven percent responded that they were so worried about immediate financial security that they are putting savings on the back burner.
Cash Still King
«Savings» translates as cash: just four in ten respondents said they had bought stocks, bonds, or real estate for savings. Sixty-four percent prefer cash or savings accounts.
Predictably, this in turn causes Blackrock, which manages over $100 billion in Switzerland, to fret: «Cash doesn't pay interest. If you're effectively stowing money under the mattress for years, inflation is taking a tangible bite out of your savings», according to André Bantli, the asset manager's head of private clients in Switzerland and continental Europe.
Lack of Know-How
Nevertheless, Swiss clients are shunning alternatives – and generally investing their money: 64 percent felt they didn't have enough money to do so. The high percentage of non-investors in Switzerland, where salaries average roughly $65,000 according to World Bank data, is surprising.
«Long-term savings targets can be met independent of personal finance budgets, even with a relatively small monthly sum», Bantli said. Roughly one-third of respondents said they didn't want to invest because they didn't know enough about financial markets, indicating consumers are still wary of trusting bankers at their word.
Blackrock surveyed 1,067 people in Switzerland for the study, which is part of a larger global one together with consulting firm Kelton Global of 27,000 respondents.
