Retail Investments in Europe - EQUITA-Bocconi 2026 Research

Europe is currently working to set up the Savings and Investments Union (SIU) and strengthen its capital markets. Individual Member States are expected to rethink how household savings can be more effectively channeled towards productive investments, fostering the development of real economy and innovation.

The study – edited by the BAFFI Centre - Bocconi University, in collaboration with EQUITA – analyses the composition of household wealth and retail portfolio allocation in four European countries: UK, Sweden, France and Italy. The objective is to understand how different institutional, fiscal and pension frameworks influence households’ participation in financial markets and which instruments can promote broader retail investment in equities.

The research shows that European households benefit from significant private wealth, yet a disproportionate share of it remains invested in cash deposits, real estate and insurance-based products, rather than in productive financial assets and higher-return investments. This allocation contributes to the persistent “equity gap”, limiting both long-term household wealth accumulation and the ability of capital markets to support companies, innovation and economic growth.

The comparison highlights significant differences across countries. Italy continues to show a more conservative and bank-centred approach, with a strong preference for liquid, low-risk assets, government bonds and real estate. The United Kingdom benefits from a mature pension system and widely adopted savings instruments; France presents a stable and articulated model; while Sweden stands out for its strong equity investment culture and broad retail participation in capital markets.

The study also compares four tax-advantaged retail investment instruments: United Kingdom’s ISA, Sweden’s ISK, France’s PEA and Italy’s PIR. The analysis shows that tax incentives are important, but not sufficient. Simplicity, flexibility, regulatory stability, straightforward tax treatment and lower administrative burdens are at least as relevant as the tax benefit itself. Instruments with no holding-period requirements, a broad investment universe and limited restrictions on withdrawals tend to achieve significantly higher household adoption.

Among the most relevant findings, Sweden’s ISK emerges as a benchmark for retail investment democratization. Its simple design, flat annual taxation on portfolio value, absence of holding-period constraints and administrative efficiency have helped reduce barriers to market participation and encourage broader investment in financial assets.

For Italy, the study suggests combining a relaunch and revision of PIRs with the introduction of an Italian ISK, a flat-rate presumptive tax account inspired by the Swedish model and adapted to the specific features of the Italian market. Such an instrument could help reduce the distance between savings and investment, foster broader household participation in equity markets, and strengthen the role of private savings in financing the real economy and European capital markets.