People & Money 2020
#changethestory

People & Money 2020

We believe the BlackRock People & Money report is about discovery, truth and opportunity. As the world changes, so does people’s thinking about money. That’s why we traveled the globe to talk to them about this complicated relationship. This is their story. And the more we listen, the better we can act.

Read our report here

Read our article

This survey* was fielded between November 2019 and January 2020, with 26,814 respondents in 18 nations. We note throughout where the COVID-19 crisis has exacerbated the trends or reinforced the insights into people’s relationship with money.

What we heard in Switzerland

52%
are interested in learning more about ESG-related options
66%
do not recognise themselves in investment related ads
23%
feel negative about the future, despite saving for retirement
50%
respondents are interested in one-click investment services
Paragraph-2,Image Cta-2,Paragraph-3,Paragraph-4
Paragraph-5,Image Cta-3,Multi Column Teaser-2
Paragraph-6,Multi Column Teaser-3,Paragraph-7,Image Cta-4,Paragraph-8
Paragraph-9,Image Cta-5,Paragraph-10

Sustainability gets the green light

Our report indicates the opportunity for sustainable investing is clear, for both investors and non-investors.

79% of investors we spoke to in Switzerland overwhelmingly feel it's important their investments make a positive impact.

79% of investors we spoke to in Switzerland overwhelmingly feel it's important their investments make a positive impact.

77% of investors would be willing to switch to sustainable investments if all other factors remained unchanged (e.g. fees, return on investment)

48% would invest in a trend because it best aligns with their personal values, followed by the estimation that the trend has the most potential for good financial returns (30%)

A legacy of change
"We are at a tipping point: More institutional & private investors want sustainable investments. The focus is on risk considerations, as the resilience of sustainable investments in times of crisis becomes apparent, but also on opportunities resulting from long-term trends & personal values.” Mirjam Staub-Bisang, Country Head BlackRock Switzerland
A legacy of change

The most important ESG issues

Human rights are the main concerns for Swiss individuals (57%), closely followed by climate change risk (55%). The COVID-19 crisis has underscored investors’ interest in environmental issues and indicates an increasing interest among investors in social issues, like human rights and equality, and governance practices.

The most important ESG issues

57% of respondents are concerned about environmental issues. 33% of respondents are concerned about social issues. 38% of respondents are concerned with governance issues.

Sustainability: The megatrend

We found that 4 in 5 people are interested in investing in key megatrends. Climate change is most appealing (84%), followed by demographic changes (74%) or emerging wealth (72%).

Sustainability: The megatrend

Spread the word

To grow sustainable investing, we must grow familiarity. This would be in everyone’s interest: 84% of Swiss respondents feel they are aware of sustainable investing.

Spread the word
  • 21% of Swiss respondents were already familiar with the term sustainable investing.
  • The majority (72%) of Swiss respondents find the concept of sustainable investing appealing.
  • 16% have never heard the term.

A world of myths

Lack of knowledge leads to misconceptions. In Switzerland people think sustainable investing translates to higher costs (52%), higher risk (43%), and sacrificing returns (49%).

A world of myths

People are also unaware of how sustainability is measured (63%). This is consistent across age groups, regions and investors vs. non-investors.

Removing old walls

Status quo and old financial systems are keeping new investors away. As an industry, we can work to become more in tune with society. The more obstacles we remove, the more financial futures we can build.

The last taboo

People’s relationship with money is complicated. Money is something people still feel reluctant to discuss. We must help people to feel comfortable discussing their money issues by changing the narrative to be open, trusting and inclusive. It’s how we will bring financial well-being to more people.

The last taboo
Always learning
“The difficulty with investing is separating emotions from a sound, systematic and structured approach. The latter should always supersede the first.” —Ed Gordon, Head of iShares & Wealth Sales in Switzerland
Always learning

Are we talking to ourselves?

How can we expect more people to trust investing if they can’t understand what we are talking about? It’s clearly not just a matter of knowing what to say, but how to say it.
Confusing
Confusing
say investing info is difficult to understand.
Perception
Perception
do not consider themselves investors.
Unrelatable
Unrelatable
do not see themselves in advertisements from investing institutions.
Not for me
Not for me
do not agree that “investing is for people like me.”

Technology gets a big thumbs up emoji

People really see technology as an advantage when managing money. We found that more and more, investors are becoming reliant on it. They see access, convenience, clarity and cost efficiency as key benefits.

Ease of access
57% of people globally value the ease of access that technology provides to their money at any moment.
Reliable and transparent
47% of people globally value the reliable and transparent management that technology provides.
Less costly
34% of people globally value the less costly advice that technology provides versus a financial professional.

But humans still get a big thumbs up, too

When it comes to managing money, human expertise and interaction are still important.  58% of people said they prefer a balance between technology and humans, and 32% of investors recommend that non-investors make a first investment with a trusted advisor.

But humans still get a big thumbs up, too

So, technology is a great tool for the investor and advisor. It can provide a new level of transparency and trust between advisors and their clients and help build a stronger relationship.

The race to innovate
"Wealth advisors and clients are increasingly looking to technology to help them better understand their investments. Clients expect a highly personalised service, coupled with access to the most innovative digital solutions. Good technology is no longer a nice-to-have." - Rebecca Gibergues, Relationship Manager, Aladdin Wealth Switzerland.
The race to innovate

Thinking forward

We asked people what would have helped them feel better about past financial decisions. They mentioned more tech solutions:

Thinking forward

The changing realities of retiring

Retirement has taken on a new meaning. Before COVID-19, it meant stopping work entirely was no longer the goal. Post COVID, it may mean that stopping work entirely may no longer be possible.

People’s priority for retirement is not running out of money, and investors will be hesitant to move into the next phase of life without steady incomes and new income-generating experiences, like flexible work or entrepreneurship.

Worried about the future

Even though many people have started saving, they don’t always feel confident or prepared. However, being prepared for retirement, especially in financial terms, positively impacts peace of mind.

Worried about the future
Saving is on the agenda
"Switzerland continues to be a country of savers, who primarily save for retirement. However, people are increasingly concerned about whether the money saved will continue to provide a comfortable living standard after retirement.”- Frank Rosenschon, Head of Institutional Client Business Switzerland
I have no plan

What we can do

We need to maintain the urgency to invest. The goal hasn’t changed: to protect people later in life. Though people know their retirement savings may not be their only income source in “retirement,” this can’t stop people from contributing now.

What we can do

Recovering together

COVID-19 relief
What is the true cost of a pandemic?
Social impact
Who will need help recovering the most?
The BlackRock Foundation
Change the story for the most vulnerable.

See how people have changed their story

Through 60 Second Docs Wealth, we capture real-life story changers. See how more people are achieving financial well-being.