Young people are investing more and more – are you following the trend?

A new survey by the Swedish Investment Fund Association, shows that young people's interest in fund saving has increased significantly in Sweden. As many as 83 percent of young people aged 18-33 are currently saving in funds, an increase from 75 percent in 2022 when the last report was made. Fund savings are also ranked as the best option for long-term savings.

Although saving in funds is more common in Sweden, it is also growing among young people in Denmark. Finans Danmark presents data from 2021 showing that the number of 18-29-year-olds who invest has increased from 14 percent to 23 percent in two years. Recent figures from 2024 show that this trend continues, and that they also are aware of the risks and that some are unsure of how to get going. 

The need for more information to increase financial literacy is also noted by World Economic Forum. They state: “Young people globally have financial literacy rates that hover below 50%, demonstrating the need to improve access to financial information and education.” With the growing trend of saving more, this becomes more and more important. 

Increased monthly savings and higher amounts

The Swedish survey shows that younger people have become better at saving monthly and as many as 59 percent now have regular savings, which is higher than the average in Sweden which is 50%. The amount they save each month is also higher than average, many of them put aside an amount of SEK 2,000-5,000 per month, which is high considering that young people often have lower incomes. The increase from the previous amount of SEK 1,000-2,000 shows a changed approach to savings and finances.

Buffer over pension

What they save for has also changed. Looking globally World Economic Forum reports that young people “see [...] investments as a trampoline to grow their wealth” and that changes in the pension system and safety nets overall, have changed the need for building a buffer.