Investment behavior among Czechs is primarily motivated by the need to provide for their old age, as they do not trust that the state will take care of them. This sentiment is prevalent among almost two-fifths of the population, and less than a third aim to maintain an active lifestyle even in old age. In addition, more than a quarter of Czechs invest to protect their savings from inflation and prepare for unexpected situations, while almost one in four aims to secure their children’s future or save for a leisurely start in life.

However, despite the benefits of investing, only about one in three Czechs invest regularly or on a one-off basis. The survey conducted by Perfect Crowd for the Capital Market Association (AKAT) revealed that only four out of a hundred people consider themselves experienced investors. The fear of losing money is the primary barrier to investing for two-fifths of respondents, followed by the fear of being scammed. Ignorance, a lack of information, and necessary finances are also significant barriers.

Real estate is considered the best investment by almost one-third of Czechs, while over two-fifths failed to identify the worst, with one-tenth agreeing on a used car. Financial portals are the most frequent source of information on investing for a third of people, followed by advice from friends, investment company websites, and other sources.

Czechs tend to prioritize saving over investing, with savings and current accounts making up 65 percent of their finances. People want to have money available in case of sudden events that could affect their economic situation, even in the short term. Two-fifths of respondents save in pension savings accounts, less than a third in building savings, and one in six invest in mutual funds. Investment in cryptocurrencies, life insurance, and gold are also reported by roughly one in eight Czechs.

Looking ahead, over two-fifths of Czechs plan to save at least in a savings account in 2023, and a quarter of the adult population intends to put money into pension savings. However, all of these products, along with investment life insurance and cryptocurrencies, are mentioned less frequently compared to the products people currently own. Gold and other precious metals were the only ones to see a slight increase in this respect.

In conclusion, while the need to provide for old age is a primary motivator for investing among Czechs, many remain hesitant due to various barriers. The lack of information and the fear of losing money are the most significant obstacles. Despite this, over two-fifths of Czechs plan to save at least in a savings account in 2023, indicating that there is still room for growth in the country’s investment culture.

Article by Prague Forum