Unused Wealth: A Study of Non-Investors

OCCASIONAL PAPER Unused Wealth: A Study of Non-Investors

In Brief Approximately 800,000 Dutch households currently have sufficient liquid wealth to invest, but do not do so, even though they may face financial shortages in the future. For this group, it may therefore be advisable to generate higher returns on their available wealth. This aligns with the European Union's desire to channel household savings toward capital markets to support investments in the European economy. The AFM is working to reduce potential barriers to starting to invest within the framework of adequate investor protection.

Authors: Maaike Diepstraten and Tobias Vervliet Publication date: April 2026 Results based on own AFM calculations in project number 8854 based on non-public microdata from the Netherlands Bureau for Economic Policy Analysis (CPB) / Central Bureau of Statistics (CBS).

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Summary 1 The Nibud buffer can be calculated via the Buffer Calculator.

The European Union wants more household savings to be used for investing - thereby supporting investments in the European economy. Money currently sitting in bank and savings accounts can be used via investments to finance companies and innovation. For households, diversified long-term investing can also yield higher returns than saving, although this comes with more risk (AFM, 2022). As long as inflation is higher than savings interest rates, households are currently even drawing down on their wealth.

Extra returns on wealth are a pleasant addition for certain households, while for other households it may be a necessary addition if they face financial shortages in the long term. Earlier research conducted before the coronavirus crisis showed that there was a group of households that did not invest, even though they essentially had sufficient liquid wealth available for it (AFM, 2022). In this research, we use recent figures to map again how many households have sufficient wealth to invest but do not do so. Additionally, we examine for how many of them it may be advisable to start investing because they may face financial shortages in the future. Finally, we map the reasons for not investing.

This research shows that approximately 1 in 3 Dutch households did not invest in 2024, while they had sufficient financial means for it. They have more liquid wealth than the Nibud reference buffer prescribes.1 The share of non-investors with sufficient wealth to invest is comparable to 2019. This is due to a (slight) increase in both the share of investors and the share of households that meet the Nibud reference buffer. A characteristic of this group of non-investors with sufficient wealth to invest is that a large part is already retired. They therefore have a limited investment horizon. Both the group that is already retired and the group that is not yet retired have significant amounts above the Nibud buffer available for investment.

For 1 in 10 (over 800,000) Dutch households, it applies that they do not invest, while they currently have the opportunity to do so and may face financial shortages later. These households are currently building up insufficient pension in the first and second pillars to be able to maintain their current standard of living during retirement (the third and fourth pillars are excluded from this research). For this group, it is therefore not only possible, but it may also be advisable to generate higher returns on the wealth they have available. For half of this group, this involves more than €30,000. Extra returns can improve their future financial position, without them having to build up an extra buffer or adjust their current consumption pattern.

The extra return will not be sufficient in all cases to completely fill the future shortfall, but it can improve the financial position. This research does not provide insight into the expected return on current wealth or what portion of the wealth should be invested to have sufficient money in the future to maintain the current standard of living. Additionally, the research does not provide insight into the adequacy of pensions of Dutch households (for this, see DNB, 2024). Pension accrual in this analysis is only used as a proxy for the long-term financial position of households.

Lack of knowledge is the most frequently cited reason for not investing. Many non-investors also find the risk of investing too high, or simply have no interest. Also, a portion of households states they do not have enough money to invest, even when they have more wealth than the Nibud reference buffer prescribes. Possibly, perceptions regarding the required knowledge, required money, and risks create barriers for consumers to start investing. Additionally, individual preferences play a role; not everyone has the desire to invest, even when the financial space for it is present.

Investing savings (taxed in box 3) can provide higher returns for households at the micro level and more investments in European business at the macro level. Investing can take various forms: independently, with advice, or via asset management. It is important that investing is approached wisely: by investing money that can be missed for a longer period, by diversifying, by not investing everything at once, and by taking costs into account. Households can also generate returns on their wealth by investing extra for pension in the second pillar (via employer) or third pillar (annuity product).

The AFM is working to reduce potential barriers to starting to invest within the framework of adequate investor protection. For this, it proactively makes proposals, both at the national level and in a European context. This is with the aim of promoting sustainable financial well-being of consumers, of which wealth accumulation is an important part.

Who does not invest, and who does? Mapping Households

Investing, but insufficient liquid wealth: 410,000 households Not investing, and insufficient liquid wealth: 1.2 million households Investing, and sufficient liquid wealth: 2.6 million households Total: 4 million households

Investing Sufficient liquid wealth Insufficient liquid wealth

Not investing Not investing, but sufficient liquid wealth: 800,000

The number of households, aged 35 to 67 and not retired, for whom we have calculated that they may face financial shortages later in life: for them, it may be advisable to start investing.

Top-3 reasons for not investing:

1. "I don't have enough knowledge to invest"
2. "Investing has too many risks"
3. "Investing does not interest me"

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OCCASIONAL PAPER Summary 2

1. Introduction 6
2. Financial buffer and investments of Dutch households 7 2.1 Four groups (non)investors 8 2.2 Additional analyses: other definitions of investing and buffers 10 2.3 Characteristics of the four groups 11 2.4 Available wealth of non-investors with sufficient wealth to invest 12
3. Advisability of generating higher returns on wealth 13 3.1 (Insufficient) money in the long term 13 3.2 Results 14 3.3 Other ways of wealth accumulation 16 3.4 Characteristics of the group that may be financially vulnerable in the long term 17
4. Reasons for not investing 18
5. Conclusion 20
6. References 21 Appendix: Data and Method 22 Table of Contents

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1. Introduction The European Union wants more household savings to be used for investing to thereby support investments in the European economy. Money currently sitting in bank and savings accounts can be used via investments to finance companies and innovation. For households, diversified long-term investing can also yield higher returns than saving, although this comes with more risk (AFM, 2022).

Recent research shows that Dutch households invest themselves less often than the average European household (Carlier, 2025). This refers to investments they make directly. In contrast, Dutch households invest relatively much via their pension compared to households from other European countries (Carlier, 2025). Furthermore, it is not suitable or possible for all households to invest; this is related to the financial means households have and individual preferences. Not everyone has the desire to invest, even when the financial space for it is present.

In earlier research, the AFM concluded that before the corona crisis there was a group of households that did not invest, while they had sufficient liquid means for it (AFM, 2022). Because since the corona period more households are investing, we map this again (CBS Statline, 2026). Here we look at the period 2019 to 2024 and distinguish four groups: 1) non-investors with insufficient liquid wealth, 2) non-investors with sufficient liquid wealth, 3) investors with insufficient liquid wealth, and 4) investors with sufficient liquid wealth. This refers to investing that falls under the wealth return tax in box 3 of the income tax. In the rest of the text, we call this 'investing'.

For households with sufficient wealth, it may not only be possible, but also advisable to let their wealth generate higher returns than the savings interest they receive. Earlier AFM research (AFM, 2022) shows that passive investing in an equity index fund yields higher returns than saving in most cases over a period of 9 years. When households have wealth now but may face financial shortages later, it is desirable that they generate better returns on their current wealth to reduce long-term financial vulnerability.

To determine to what extent it is advisable for households, besides being possible, to let their available wealth generate higher returns, we look at to what extent they may face financial shortages in the long term. Here we look at pension accrual in the first and second pillars. When households do not build up sufficient pension to maintain their current standard of living, it is desirable that they generate higher returns on their current wealth. In these cases, it is desirable for both the European economy and households to start investing or to generate higher returns in another way. A higher return on current available wealth can improve the long-term financial position, without it being necessary to adjust the current consumption pattern.

Finally, we map reasons for not investing. Here we distinguish between all non-investors on the one hand and non-investors with sufficient wealth to invest and insufficient pension accrual to maintain the standard of living on the other hand.

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2. Financial buffer and investments of Dutch households To determine whether a household has room to invest, we compare the household's liquid wealth with the Nibud reference buffer. The Nibud reference buffer indicates how much money a household should have on hand to pay for unexpected, large, and necessary expenses (Nibud, n.d.). Think of costs for a new refrigerator or expenses for home or car maintenance.

The height of the reference buffer varies per household and depends on multiple factors. This includes, among other things, the composition of the household, income, type of housing, housing value (in the case of an owner-occupied home), and ownership of car(s). We have linked the Nibud buffer at the household level to CBS Microdata, so that we can determine for each household separately what the prescribed Nibud buffer was in the years 2019 to 2024.

When a household has more money than the reference buffer prescribes, space arises to invest - independent of individual preferences. We define household liquid wealth here as the sum of bank and savings balances plus investments minus consumer credit.

To determine whether a household invests, we look at investments that are taxed in box 3 of the income tax. When the total value of investments is greater than zero, we consider the household as 'investing'. We look here exclusively at whether a household invests, not at the size of investments. Investments in the third pillar are excluded.

By combining whether a household meets the reference buffer and whether or not they invest, we distinguish four groups: 1) non-investors with insufficient liquid wealth, 2) non-investors with sufficient liquid wealth, 3) investors with insufficient liquid wealth, and 4) investors with sufficient liquid wealth.

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2.1 Four groups (non)investors The share of households meeting the reference buffer rose between 2019 and 2024 from 43% to 46% (see Figure 1). In 2024, the median Nibud reference buffer was €26,650.

Figure 1 Development of the share of households meeting the reference buffer and the share of households investing over the years 2019-2024 0% 10% 20% 30% 40% 50% % meeting the buffer % investors 2019 2020 2021 2022 2023 2024 15% 15% 17% 19% 19% 19% 43% 44% 48% 47% 46% 46% Source: CBS Microdata and Nibud reference buffers

Additionally, we see that the share of households investing increased between 2019 and 2024 from 15% to 19% (see Figure 1). This corresponds to earlier news that more households started investing during the corona pandemic (CBS Statline, 2026; Vervliet and Van Oldeniel, 2025).

Figure 2 Development of groups 1) no investments, insufficient liquid wealth, 2) no investments, sufficient liquid wealth, 3) yes investments, insufficient liquid wealth, and 4) yes investments, sufficient liquid wealth over the years 2019-2024 0% 10% 20% 30% 40% 50% 60% 2019 2020 2021 2022 2023 2024 No investments, sufficient liquid wealth No investments, insufficient liquid wealth 54% 53% 49% 49% 49% 49% 31% 32% 34% 32% 32% 32% 3% 3% 4% 5% 5% 5% 12% 12% 13% 14% 14% 14% Yes investments, sufficient liquid wealth Yes investments, insufficient liquid wealth Source: CBS Microdata and Nibud reference buffers

In 2024, approximately one-third of households did not invest, while they had sufficient liquid wealth for it (see Figure 2). Although the number of households investing has increased in recent years, there remains a group of approximately 2.6 million households that do not invest despite being financially capable of doing so. Additionally, there is a large group of households that do not invest and have insufficient financial wealth to invest. The share of this group has slightly decreased between 2019 and 2024, but still concerns approximately half of the households (approx. 4 million). Additionally, we see that approximately 1 in 6 households in 2024 belonged to the group of investors with sufficient wealth (1.2 million households), while approximately 1 in 20 households invested despite their wealth being lower than the reference buffer prescribes (410,000 households).

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In almost all age groups, the group of households that do not invest and do not have sufficient wealth for it is the largest (see Figure 3). Only in the oldest age group does this not apply: there the largest group is that which does not invest, but has sufficient buffer for it. The share of households that do not invest and have insufficient wealth is largest among the youngest age groups. Furthermore, the share of investors with sufficient buffer is lowest in the youngest age groups, although this share has increased the most strongly in recent years: for youth under 25 years from 4% in 2019 to 8% in 2024, and for youth aged 25-34 from 5% to 13%.

Figure 3 Development of groups 1) no investments, insufficient liquid wealth, 2) no investments, sufficient liquid wealth, 3) yes investments, insufficient liquid wealth, and 4) yes investments, sufficient liquid wealth over the years 2019-2024, split by different age groups 0% 10% 20% 30% 40% 50% 60% 70% 80% 2019 2021 2022 2023 2024 2020 2019 2021 2022 2023 2024 2020 2019 2021 2022 2023 2024 2020 2019 2021 2022 2023 2024 2020 2019 2021 2022 2023 2024 2020 2019 2021 2022 2023 2024 2020 0% 10% 20% 30% 40% 50% 60% 70% 80% 0% 10% 20% 30% 40% 50% 60% 70% 80% 2019 2021 2022 2023 2024 2020 2019 2021 2022 2023 2024 2020 2019 2021 2022 2023 2024 2020 2019 2021 2022 2023 2024 2020 2019 2021 2022 2023 2024 2020 2019 2021 2022 2023 2024 2020 0% 10% 20% 30% 40% 50% 60% 70% 80% 0% 10% 20% 30% 40% 50% 60% 70% 80% 0% 10% 20% 30% 40% 50% 60% 70% 80% No investing, insufficient liquid wealth Younger than 25 years 25-34 years 35-44 years 45-54 years 55-64 years 65 years and older No investing, sufficient liquid wealth Yes investing, insufficient liquid wealth Yes investing, sufficient liquid wealth Source: CBS Microdata and Nibud reference buffers

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2.2 Additional analyses: other definitions of investing and buffers Besides investing where investments are taxed in box 3 of the income tax, households can also contribute to third-pillar products. In that case, they save or invest tax-facilitated for their pension. In an additional analysis, we therefore also include contributions to third-pillar products as investments. Because we cannot distinguish between savings and investment products, we overestimate the share of investors in this analysis. However, since only a small part of households in 2024 contributed to the third pillar (5%), the overestimation is small and the outcomes of the analysis in the previous paragraph hardly change. When we include third-pillar products, 22% of households invest versus 19% when we do not count this contribution. The share of households that do not invest but have sufficient wealth for it decreases from 32% (without contribution to third-pillar products) to 30% (with contribution to third-pillar products).

To determine whether households meet the reference buffer, we calculated liquid wealth as the sum of bank and savings balances plus investments minus consumer credit.

In reality, investments may not be liquid, for example when households have invested in closed-end funds. In additional analyses, we therefore included the value of investments partially (75%) or not at all. Logically, this only affects the distribution of households that invest: the share of the group that invests and has sufficient buffer for it varies between 11.5% and 14.3% (see Table 1).

Table 1 The shares of the groups yes/no investing and yes/no sufficient wealth to invest for different definitions of liquid wealth 2024 No investments, insufficient wealth No investments, sufficient wealth Yes investments, insufficient wealth Yes investments, sufficient wealth Bank and savings balances + 100% of investments – consumer credit 48.8% 31.9% 5.0% 14.3% Bank and savings balances + 75% of investments – consumer credit 48.8% 31.9% 5.4% 13.9% Bank and savings balances – consumer credit 48.8% 31.9% 7.8% 11.5% Source: CBS Microdata and Nibud reference buffers

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2.3 Characteristics of the four groups The four groups of households differ in both demographic and socio-economic characteristics (see Table 2). A few things stand out. For example, investing households more often have a partner than non-investing households (approx. 70% vs. approx. 50%). Households that do not invest, but have sufficient financial means for it, are on average older than households in the other groups (59 vs. 46-55 years). Of the over 2.6 million households that do not invest and have sufficient wealth for it, the main earner in over 1 million households is already retired. They therefore have a less long horizon to invest. Furthermore, it appears that households that do invest but do not meet the reference buffer are relatively often self-employed (20% vs. approx. 10% in other groups).

The groups also differ financially. For households that invest, the median disposable income is higher than for households that do not invest (over €70,000 vs. over €40,000). Additionally, the median bank and savings balance is much higher for households that meet the reference buffer than for households that do not meet the reference buffer (over €50,000 vs. under €15,000). Finally, it stands out that the Nibud reference buffer is higher for the groups that do invest than for the groups that do not invest (almost €40,000 vs. almost €25,000). This is related to the earlier observation that these households more often consist of a main earner with a partner.

Table 2 Characteristics of the groups yes/no investing and yes/no sufficient wealth to invest. 2024 No investments Insufficient wealth (N = 4,030,639) No investments Sufficient wealth (N = 2,634,029) Yes investments Insufficient wealth (N = 409,965) Yes investments Sufficient wealth (N = 1,184,308) Age of main earner 49 59 46 55 Partner present 48% 50% 70% 67% Main earner is employee 52% 42% 64% 52% Main earner receives a benefit 14% 6% 3% 2% Main earner is retired 19% 41% 11% 30% Main earner works as self-employed 11% 8% 20% 13% Owner-occupied home 46% 57% 80% 81% Median disposable income €42,009 €44,279 €72,882 €71,363 Median bank and savings balances €4,984 €55,112 €14,166 €80,064 Median Nibud reference buffer €21,950 €24,150 €39,500 €37,350 Source: CBS Microdata and Nibud reference buffers

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2.4 Available wealth of non-investors with sufficient wealth to invest We map how much money households have available to invest. This concerns the liquid wealth above the reference buffer. Households that just meet the reference buffer may not find it worthwhile to delve into investing. Because in the previous paragraph we saw that a large part of non-investors with sufficient wealth is already retired (and therefore has a limited investment horizon), we make a distinction here between households where the main earner is already retired and households where the main earner is not yet...