Articles tagged with “retirementplanning”

Retired small business owner Susie James, 67, from Wales, reflects on her cautious approach to investing after witnessing two major market crashes. Like many Europeans, she and her husband keep a significant portion of their savings in cash due to distrust in the stock market. Europeans hold a third of their financial assets in cash or lowrisk deposits, compared to just a tenth for Americans, according to the European Central Bank. This conservative strategy has shielded many from recent market volatility but also caused them to miss longterm gains. Only 33% of European Union households invest in stocks or funds, far below the 51% rate in the U.S. Scandinavian countries show higher investment rates, while Spain, France, and Italy lag behind, with fewer than 30% of adults participating in the market. Financial constraints and lack of knowledge are key barriers to investing in Europe, where options are often more complex and costly than in the U.S. Differences in tax and securities laws across countries further complicate the process. Generous social safety nets and public healthcare in Europe have historically reduced the need for riskier investments. Meanwhile, U.S. retirement plans increasingly tie savings to the stock market, exposing more Americans to its fluctuations. Christine Lagarde, president of the European Central Bank, notes that Europe's cautious approach has cost the continent trillions in potential investment growth over time.