Investor sentiment: Upbeat, but concerned
In 2015, Latin Americans scored among the most positive and confident about their financial futures and investment and savings decisions. However, there has been a dip in this sentiment since 2014.
What are their financial priorities, and what do they feel put them at risk?
While investor sentiment is unchanged, it moderated in Latin America from the extreme optimism they held in 2014.
Given the significant economic and political volatility the region has faced, particularly in Brazil and Chile, this is not surprising.
While still above the global numbers, financial decision makers’ confidence that they are making the right decisions about their savings and investments has also weakened.
So, what is causing the drop in confidence?
Concerns about the high cost of living and the state of the economy dominate but healthcare, jobs, inflation and taxes surface on a country basis.
Moreover, compared to the rest of the world, Latin Americans stand out as savers. 75% of Latin Americans place a priority on saving, compared to 67% of people globally.
What are Latin Americans’ financial priorities? Other than “saving money” in general, preparing for a “comfortable retirement” is ranked first or second across every country.
In more challenging times, investors’ worries are exacerbated, which has a real impact on how they are saving, investing, and seeking information for their financial priorities. Latin Americans’ approach to saving and planning for retirement demonstrates this challenge.