Europe’s next big move: from saving habits to a pan-European investment shift

By Frank Schooneveldt, Managing Director at Akkuro

Europe is entering a decisive phase in wealth creation. Persistently low real returns on traditional savings and inflation near 2 percent are eroding household purchasing power. The €1.4 trillion that European households save annually remains largely uninvested, limiting long-term capital formation. Digital platforms are lowering barriers to market participation, while policy initiatives such as the European Commission’s Savings and Investment Account (SIA) aim to activate idle capital. Together, these forces are redefining how wealth is built and managed. For financial institutions, the opportunity is clear: combine simplicity, transparency and digital ease to help households move beyond low-yield saving toward resilient long-term investing.

Why saving is losing ground

Deloitte expects policy rates to stabilize around 2 percent, pushing average savings yields down to roughly 1.2 to 1.5 percent by 2026. With inflation near 2 percent, holding cash implies a real loss of purchasing power. Meanwhile, EFAMA reports that European investment funds have reached €21 trillion in assets, up 8 percent year on year confirming a structural shift McKinsey has highlighted repeatedly: saving alone no longer preserves wealth. For institutions, liquidity buffers remain relevant, but growth increasingly depends on investment strategies. Providers that do not adapt risk losing relevance in a market where savings balances are large but real returns are negative.

Reality check: why savings surged in 2025

Savings accounts in Belgium saw their strongest growth in at least 15 years, with balances rising by €25.3 billion to €282.35 billion at nine major banks, representing about 90 percent of the market. Total regulated savings reached a record €305.6 billion. This increase was driven mainly by maturing term deposits and geopolitical uncertainty, as households sought safety. The ECB lowered rates from 4 to 2 percent between June 2024 and June 2025, making short-term deposits less attractive and pushing funds back into savings. This surge shows how volatility can trigger defensive choices even when real returns are negative. For financial institutions, hybrid solutions that combine security with growth potential are essential to guide clients from passive saving to long-term investing, without forcing them to give up their sense of safety.

Digital platforms and hybrid solutions

PwC expects that by 2026, 30 percent of retail investments in Europe will flow through digital channels. Deloitte finds that 65 percent of European banks are investing in end-to-end platforms, and 80 percent of retail clients now expect real-time insights and personalized advice. Market leaders like ABN AMRO are responding with hybrid products such as the Investor Savings Account, which combines a liquid buffer with investment potential in a single proposition. Digital is no longer just another channel it is the foundation for growth and client engagement. Clients expect intuitive journeys, clear risk communication and on-demand insight into how their money is working for them.

Policy-driven innovation: the Swedish model goes European

Policy is becoming a catalyst for retail investment participation. Sweden’s Investeringssparkonto (ISK) has brought 3.8 million households into investing through a simple tax-advantaged framework. Inspired by this, the European Commission is developing a pan-European SIA, aimed at channelling the €1.4 trillion that European housholds save annually into long-term investment. Best practices already exist beyond Sweden: the UK has 22.3 million Individual Savings Account holders, and Germany’s ETF savings plans have grown to nearly 5 million accounts by 2024. When tax incentives, product simplicity and digital access come together, participation can scale quickly. Providers that anticipate regulatory developments and design products aligned with fiscal benefits will be better positioned to capture growth.

Institutional transformation

The shift from saving to investing is not limited to households. Institutional investors are also restructuring portfolios in response to low yields, inflation dynamics and long-term funding needs. ING has consolidated its global investment capabilities into a single Global Investment Centre, managing around €250 billion in assets reflecting a broader trend toward scale, efficiency and centralized expertise. McKinsey forecasts that alternatives such as private equity and infrastructure will account for roughly 20 percent of institutional portfolios by 2026, driven by growing needs for diversification and long-term income streams, particularly for pension funds and insurers facing demographic and regulatory pressures.

What this means for the future

Technology and policy are the twin engines of Europe’s wealth shift. Digital channels lower the barrier to entry, while fiscal frameworks and regulatory initiatives create incentives to participate. Institutions that bring these elements together in user-friendly and transparent propositions will be best positioned to lead. 

For households, the challenge is to build more resilient balance sheets in a world where saving alone no longer preserves wealth.

For institutions, the task is to guide that transition responsibly offering clear choices, transparent communication about risk and return, and solutions that balance short-term security with long-term objectives.

From Stockholm to Brussels, from retail savers to institutional investors, the shift from saving to investing is gaining momentum. The open question is which providers will help shape that transition.