The World Economic Forum’s Global Retail Investor Outlook 2024 released today confirms a sustained shift towards younger retail investors. Spanning 13 economies, the research finds that 30 per cent of Gen Z start investing in early adulthood – compared to 9 per cent of Gen X and 6 per cent of Baby Boomers. By the time they enter the workforce, 86 per cent of Gen Z have learned about personal investing versus 47 per cent of Boomers, underscoring a generational transformation in financial habits.
Developed in partnership with Robinhood Markets and Boston Consulting Group, this latest global research also highlights emerging tech trends. Younger generations are also more open to tech and AI-enabled financial advice, with 41 per cent of Gen Z and Millennials reporting they would allow an AI assistant to manage their investments. Only 14 per cent of Baby Boomers said the same.
“Younger generations and individuals in emerging markets are increasingly interested in investing to build wealth and enhance their financial stability,” said Natalya Guseva, Head of Financial Markets and Resilience at the World Economic Forum. “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.”
Retail investor trends
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 per cent avoid stocks due to a lack of understanding, only 24 per cent 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 per cent of investors prioritised emergency savings, up from 41 per cent in 2022, while those focused on having enough to retire dropped from 48 per cent to 42 per cent.
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 per cent of individuals from emerging markets across all ages would allow an AI assistant to manage their investments.
“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,” said Stephanie Guild, CFA, Senior Director, Investment Strategy, Robinhood. “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.”
The benefits of retail investing
“Individual participation in capital markets has the potential to enable long-term financial well-being,” added Dean Frankle, Managing Director and Partner, BCG, “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.
1. Developing financial products and platforms that prioritise 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.
2. 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.
3. 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.
Robinhood Markets Inc, BCG and the World Economic Forum surveyed over 13,000 respondents across the following countries: Australia, Brazil, China, France, Germany, India, Ireland, Japan, Singapore, South Africa, United Arab Emirates, United Kingdom, and the United States. Conducted by Dynata in September 2024, the survey examined investor and non-investor preferences, behaviours, and needs. Insights from the survey shaped the Global Retail Investor Outlook 2024. All respondents were over 18.
Survey methodology
Robinhood Markets Inc, BCG and the World Economic Forum surveyed over 13,000 respondents across the following countries: Australia, Brazil, China, France, Germany, India, Ireland, Japan, Singapore, South Africa, United Arab Emirates, United Kingdom, and the United States. Conducted by Dynata in September 2024, the survey examined investor and non-investor preferences, behaviours, and needs. Insights from the survey shaped the Global Retail Investor Outlook 2024. All respondents were over 18.
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