Why Retail Investor Participation in Ireland Remains So Low – And What Needs to Change

Irish household wealth has more than doubled over the past decade, yet the latest research from the Central Bank of Ireland reveals a striking contradiction: retail investor participation in Ireland remains among the lowest in Europe. Despite stronger incomes, elevated savings and increasing financial stability, most households still keep the bulk of their money in cash rather than in long-term investment assets.

For both individuals and the wider economy, this gap represents a missed opportunity. Understanding why participation remains low is the first step towards helping Irish savers feel more confident about investing for their future.

1. Irish Households Still Favour Cash Over Capital Markets

According to the research, Irish households continue to hold a disproportionately large share of their financial assets in bank deposits, which now represent close to 40 percent of total household financial wealth. Investments in listed shares, funds or bonds remain modest, accounting for just a small fraction of overall portfolios.

By comparison, households in several EU countries hold significantly higher proportions in investment funds and equities, reflecting a deeper culture of long-term investing.

While Irish households do hold indirect investment exposure through pensions and insurance products, the level of direct engagement with capital markets is notably limited.

2. Who Invests – and Who Doesn’t

The report paints a clear profile of the typical Irish retail investor. They are most often male, generally between the ages of 35 and 54, and tend to have higher incomes and education beyond secondary level. They are also more likely to live in Dublin or its surrounding commuter regions, where access to financial products and services is typically broader.

In contrast, younger savers, lower-income households and those living outside major urban areas remain significantly less likely to participate in capital markets. Wealth is a powerful influence: the top 10% of households account for roughly 80% of both direct and indirect investment holdings. This imbalance underscores the need for more accessible pathways to investment participation across income levels, regions and age groups.

3. The Barriers Preventing Broader Participation

• Lack of financial confidence – A consistent theme throughout the research is that many Irish people simply feel they don’t understand investing well enough, particularly when compared with savings products.

• Cultural caution and fear of loss – Past economic shocks, including the financial crisis and property collapse, have left lasting impressions. Many savers still associate risk-taking with potential loss rather than long-term growth.

• Perceived exclusivity – Investment is often seen as “something wealthy people do”, even among those with modest but investable savings.

• Lack of accessible advice – The report highlights a gap in affordable, entry-level financial advice. Many don’t know where to start or whom to trust.

• Competing financial pressures – Rising living costs, high housing expenses and short-term financial commitments make long-term investing feel out of reach for many.

4. What Supports Higher Investment Participation?

International comparisons show that countries with stronger investment engagement tend to offer straightforward, low-cost investment options supported by robust consumer protections. Households in these markets also benefit from reliable, accessible information, clear and consistent tax incentives and widespread financial education initiatives that build confidence over time.

According to the Central Bank, improving transparency, broadening access to suitable investment products and enhancing investor safeguards would meaningfully support efforts to build trust in capital markets and increase participation.

5. Why It Matters for Irish Households and the Economy

For individuals:

A heavy reliance on deposits means many savers risk missing out on long-term market growth, which can have a profound effect on retirement outcomes. Over decades, inflation erodes the real value of cash, while diversified investment portfolios typically deliver higher long-term returns.

For the economy:

Stronger retail investor participation could:

• increase the flow of household savings into productive investment
• support job creation through deeper capital markets
• enhance Ireland’s financial resilience
• strengthen long-term economic growth

In other words, broadening participation isn’t just a personal financial issue – it is a national economic opportunity.

Final Thoughts

The research makes one thing clear: Ireland’s low retail investor participation is not due to a lack of financial capacity, but rather a combination of confidence gaps, cultural factors and accessibility challenges. With the right support, many households could begin to invest in a way that aligns with their goals, risk comfort and long-term needs.

If you’re considering how to move from saving to investing – or how to assess your options – book a confidential consultation with Chartered Capital. Our team can help you build clarity, confidence and a plan that fits your long-term financial goals.

The content of this article is for information purposes only and does not constitute a personal recommendation. You should always speak to a financial adviser that is regulated by the Central Bank of Ireland when considering financial advice. Any recommendation made will be based on a full suitability assessment that will include a comprehensive review of your circumstances, needs and objectives. Past Performance Is Not A Guide To Future Returns.