The Swiss are renowned for having a close and good relationship with cash – an image that seems to have been confirmed by the findings of a new survey.
The Swiss are a population of savers. Indeed, 86 percent of people surveyed by Axa Investment Managers (AIM) have a savings account, 43 percent own a life insurance product or another asset solution with risk protection, and 31 percent are saving money through a pension fund.
What’s more: almost half of all assets (48 percent) are being held as cash, the survey showed. Ipsos Mori had polled 2,000 wealthy Swiss for Axa Investment Managers in March 2020.
Waiting for the Right Moment
Why Cash – after all, in times of negative interest, assets are hardly increasing in value on a savings account. AIM says that the main reason for this is down to practical reasons. The surveyed with at least 40 percent of assets held in cash say that they need the money for emergencies (61 percent) and periodic payments (43 percent).
Waiting for the right moment to invest is another reason given for keeping a certain percentage of assets in cash (30 percent), with many younger people (16 to 39 years) present in this group and to a lesser degree investors of 55 years and over. But one in ten (11 percent) doesn’t know how to invest his or her money.
Preparing for Old Age
Why do the Swiss save money? The clear majority (68 percent) are putting their money aside to have enough to live on after retiring from work. The prospective income after retirement is the most important financial target to be met for half of the people surveyed.
On average, the surveyed have assets worth 353,744 francs ($390,000) when they retire, according to AIM. Only about half of the respondents believe that this will suffice to live comfortably for the rest of their life.
