(Vienna) For over a century, World Savings Day has been a symbol of financial prudence. But especially in times of high inflation and low interest rates, it is becoming increasingly clear that traditional savings are losing their effectiveness as a means of financial provision. Austria remains a country of savers: data from the OeNB show that around 345 billion euros – equivalent to approximately 38% of total private financial assets – are held in low-interest accounts or as cash. Due to inflation, this capital is continuously losing purchasing power. While other European countries are creating or have long since created incentives for long-term investment, Austria lacks the impetus to put private assets to productive use.
"In view of the tax penalties, Austria's investors are all the more admirable for their conviction. Almost every third Austrian already owns securities. There is hardly any other country where equity-based retirement saving is so severely disadvantaged. But where there is still little available, there is all the more potential for incentives. Without a stronger capital market culture, Austria will continue to lose its innovative strength and prosperity," says Christoph Boschan, CEO of Wiener Börse AG.
While more and more countries are offering incentives, Austria is lagging behind
There are plenty of models for expanding funded pension provision. Many European countries are one step ahead of Austria in this regard: Poland is focusing on tax-privileged investment accounts with ‘OKI’ in the future, following the example of Sweden with its ‘Investeringssparkonto’. Germany is also moving towards state-subsidised investment account with its reform plans. Austria, on the other hand, offers no tax incentives for equity-based retirement saving on the capital market.
"The reintroduction of the retention period has been on the political agenda for years and would therefore be a straightforward, effective incentive. It targets exactly what we want to promote in pension provision: long-term investment instead of short-term speculation. Broadly diversified and with a long investment horizon, equity investment is the safest and most profitable of all asset classes," says Boschan.
New Vienna Stock Exchange campaign strengthens Austria’s investment culture
In addition to diversification and a long-term approach, the principles of successful equity investing include awareness of fees, regular investing, and ongoing information. This is the focus of the Vienna Stock Exchange's new awareness campaign under the slogan ‘Beteilig dich’. It aims to encourage young people in particular to engage with the capital market and equity investment in a low-threshold and practical way.
About the Vienna Stock Exchange
As the central infrastructure provider in the region, Wiener Börse AG opens doors to global markets. It unites the stock exchanges in Vienna and Prague. Listed companies benefit from maximum liquidity there, and as the market leader it offers investors fast and inexpensive trading. Wiener Börse collects and distributes price data and calculates the most important indices for a dozen markets in the region. Thanks to its unique know-how, the national exchanges in Budapest, Ljubljana and Zagreb also rely on the IT services of the Vienna Stock Exchange. In addition, it is involved in other energy exchanges and clearing houses in the region.
Disclaimer
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