The World Economic Forum’s Global Retail Investor Outlook 2024 released confirms a sustained shift towards younger retail investors.
Spanning 13 economies, the research finds that 30% of Gen Z start investing in early adulthood – “compared to 9% of Gen X and 6% of Baby Boomers.”
By the time they enter the workforce, 86% of Gen Z have “learned about personal investing versus 47% of Boomers, underscoring a generational transformation in financial habits.”
Developed in partnership with Robinhood Markets and Boston Consulting Group, this research also highlights “emerging tech trends.”
Younger generations are also more open to tech and AI enabled financial advice, with 41% of Gen Z and Millennials “reporting they would allow an AI assistant to manage their investments.”
Only 14% of Baby Boomers said the same.
Natalya Guseva, Head of Financial Markets and Resilience at the World Economic Forum said:
“Younger generations and individuals in emerging markets are increasingly interested in investing to build wealth and enhance their financial stability. Given this sustained shift in investment demographics, it is critical for leaders to reassess the retail investing landscape and ensure individual investors are equipped with the right financial education and investing tools that support their financial goals.”
The survey finds retail investors increasingly view cryptocurrency “as more understandable and easier to understand than traditional investments like ETFs, mutual funds, bonds, and stocks.”
While 29% avoid stocks due to a lack of understanding, only “24% say the same about crypto. Among investors under 44 who hold cryptocurrencies, more than half allocated at least a third of their portfolio to it.”
Financial priorities are shifting towards “short-term needs.”
In 2024, 51% of investors prioritized emergency savings, “up from 41% in 2022, while those focused on having enough to retire dropped from 48% to 42%.”
For non-investors, the biggest barriers were “lack of funds and fear of financial loss.”
More than half say they would have felt more “confident investing if they had learned about it in primary school.”
In addition to younger investors being more open to AI driven financial advice, the survey also finds that “48% of individuals from emerging markets across all ages would allow an AI assistant to manage their investments.”
Stephanie Guild, CFA, Senior Director, Investment Strategy, Robinhood said:
“Innovative financial advisory tools, such as AI-enabled products, could fill the gaps where traditional financial advisory may be too expensive or out of reach. Innovations that lower barriers to entry and enrich digital advice with intrinsic guidance, can help make financial advice more accessible, enabling more people to participate in the markets with greater confidence.”
Dean Frankle, Managing Director and Partner, BCG, said:
“Individual participation in capital markets has the potential to enable long-term financial well-being. Industry stakeholders must work together to equip retail investors with the best tools, education and access.”
The research highlights several steps stakeholders in the retail investing ecosystem “can take to empower individuals.”
- Developing financial products and platforms that prioritize individual investors – As new generations enter capital markets, evolving investor needs will require new financial products and platforms that expand past those traditionally tailored for institutional investors. Products that address key barriers including uncertainty, capital constraints, and market volatility can drive inclusion, confidence, and better outcomes for retail investors.
- Leveraging technology to enhance affordability and accessibility – Technology can make financial advice, portfolio building, and education more accessible and affordable for retail investors. AI-driven solutions have the potential to streamline financial advisory processes, enabling portfolio design and advisory services at more accessible price points.
- Implementing policies that empower and protect retail investors – Effective policies should equip investors with the necessary tools to navigate markets confidently while fostering innovation and safeguarding individuals. This could include expanding auto-enrolment in pensions, promoting fee-only and conflict-free advisory models, and implementing robust investor protection frameworks to help individuals manage risks in alignment with their financial goals.
Survey methodology
Robinhood Markets Inc, BCG and the World Economic Forum reportedly surveyed over 13,000 respondents across Australia, Brazil, China, France, Germany, India, Ireland, Japan, United Kingdom, and the United States (and other countries as well).
Conducted by Dynata in September 2024, the survey examined “investor and non-investor preferences, behaviors, and needs.”
Insights from the survey shaped the Global Retail Investor Outlook 2024.
All respondents were over 18.