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French savers have become aware of the very low interest rate environment and its
possible impact on their savings in terms of performance.
Almost 80% of individual investors noted the decrease in returns on regulated savings
products and in interest rates, 64% noticed the lower return on euro-denominated life
insurance products. Many expect the rate of interest on Livret A passbook savings accounts
to continue dropping (40%), as well as the return on euro-denominated life insurance
products (42%). On the other hand, 64% observed the rise in stock market prices in recent
years.
Furthermore, savers are more realistic and pragmatic regarding the return that can currently
be expected on an investment. When asked from what level they consider an investment to
be profitable, the majority (52%) replied between 3% and 5%. For them, very realistically,
topping 3% per year is a threshold.
“2015 marks a real break for French savers. They have become aware of the new
environment of very low interest rates which now applies to them and of its impact in terms
of expected return on traditional savings products,” comments Christine Lacoste, Head of
network development at Natixis Asset Management.
This new deal means new dynamics: savers are prepared to boost their investments
to get a better performance in the long term.
Reflecting savers’ greater maturity, the environment in 2015 is widely seen as being
conducive to changing investment objectives (71%), to diversify into new financial
investments adapted to the changing environment (71%) or even to invest in stock marketrelated
investments (60%). In actual fact, over the same period, a significant proportion of
savers has even taken action: 41% have reviewed their goals, 38% have diversified their
savings, 30% have invested in the financial markets.
“The results of our 2015 survey confirm our observations on the ground: investors are
gradually moving back into potentially more efficient investments, notably mutual funds
(UCI[[ UCI: Undertakings for Collective Investment.]]
) and diversified unit-linked accounts, for which they accept a reasonable degree of
risk,” explains Christine Lacoste.
French savers focus more on immediate budget savings than on reviewing their
savings strategy regularly and astutely. And yet, savings strategies can generate
greater potential gains over the long term. Financial advisors play a key role in
making them aware of this.
Almost 6 out of 10 savers (58%) say they have already renegotiated a telecom package,
more than 55% have renegotiated their car insurance and almost 50% their mortgage, when
only just over 40% reviewed their savings strategy in the first half of 2015.
At the same time, like in 2014, banks’ financial advisors remain the no.1 source of
information and advice for savers (cited by 69%). Financial advisors still have a key role of
education and support for individual investors, particularly in understanding the market
environment and identifying investment opportunities to be seized.
It should also be noted that the Internet comes top of the media consulted (17% for
specialised savings and investment websites), and that its place in the sources of information
consulted by savers is constantly growing.
“Financial advisors remain the major players in making savers aware of the benefits of
challenging and regularly revisiting their savings strategies – and this, in the same way and
with the same agility that savers bring to their credits and existing contracts,” explains
Christine Lacoste.
Retirement remains a major concern, leading to a surge of interest in more dynamic
investments, notably in the financial markets.
Like in 2014, preparing for retirement remains a priority goal for savers. The proportion of
savers putting money aside for their retirement remains high in 2015, more than 66% (64%
in 2014).
For this purpose, individual investors continue to use savings accounts or passbooks (34%),
as well as life insurance (26%). Individual retirement plans have lost some ground (from
16% in 2014 to 12% in 2015). On the other hand, financial and stock market investments
have picked up (from 9% to 14%), showing they are becoming more open to more dynamic
strategies.
Specifically, individual investors show keen appetite for thematic equity funds, which give
more context and purpose to long-term savings. When asked about their interest in equity
funds in the themes of agriculture, job creation and the environment, savers express keen
interest in all these themes: 42%, 43% and 55%, respectively.
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