How the US Compares With 9 Other Countries at Turning Savers Into Investors

Why do some developed countries successfully promote strong investment cultures while others struggle? And how does the US measure up?

We answer those questions and more in our Investor Journeys Around the World report, which found that building a robust investment market is easier than building a nation of investors.

Some of the 10 developed countries we studied offer solid tax incentives, investor-friendly regulations, and broad product choice, yet many households continue to hold substantial amounts of cash instead of investing in capital markets. Why? Because incentives alone aren’t enough. Our research suggests they have to be paired with access and an investing experience that earns people’s trust.

Evaluating the Investor Culture in the US

We graded each country overall and rated them on market structure and investor environment. The US earns an overall B grade in our report.

The US is perceived to have a solid investment culture and has a broad base of investors, primarily through retirement plans. The distribution of total financial assets over the past two decades, as seen in the chart below, supports that perception. But those numbers mask a big downside: uneven participation. Because access to workplace retirement plans and auto-enrollment aren’t universal, some workers are left out.

Here’s what the US does well in terms of market structure.

• Regulators are modernizing rules and supporting innovation while maintaining market integrity.
• The US combines preferential long-term capital gains treatment with a range of targeted tax-advantaged accounts.
• Outside workplace retirement plans, investors can work with registered investment advisors or broker/dealers. Investment advisors are held to a fiduciary standard, while broker/dealers are subject to Regulation Best Interest when making recommendations to retail customers.

Overall, a strong investor environment supports those participating in the US markets.

• The US is one of the strongest-performing markets for investor disclosures, particularly with the introduction of investor-friendly ongoing communications.
• Robust fee transparency requirements ensure investors have comparable information, contributing to increasing usage of lower-cost unbundled or semibundled share classes.
• Regular portfolio disclosure through a centralized system further supports investors.
• While the US does not rely on a standardized risk-score framework, investors are provided extensive risk and return information to support informed decision-making.

Room for improvement: Extending the use of auto-enrollment or backstopping workplace coverage with state-run programs could see more Americans benefit.

Why Countries Are Trying to Turn Savers Into Investors

Across developed markets, governments are encouraging citizens to move beyond saving and become long-term investors. They’re motivated by aging populations, growing demands on public finances, concerns about retirement adequacy, and the need to mobilize capital for economic growth.

Our report looks at which of the 10 markets have seen success or show promise to do so. Some highlights from outside the US:

The UK scores well with both generous, well-established tax-incentivized investment and retirement saving options; a robust regulatory, distribution, and product framework; and high numbers of people contributing to pensions. However, it continues to have persistently high cash savings rates and low equity and fund investment. Overall grade: B

In Australia, we find weaker portfolio and performance disclosures than peers but a strong superannuation system, a healthy advice framework, and reasonable fee disclosures, which together provide a strong infrastructure for investment. Overall grade: B

Canada is trending toward fewer fee-bundled share classes and picks up marks for the quality of its Fund Facts presale documents, as well as strong retirement and tax-incentivized savings options. Overall grade: B

Japan stands out both for its famously high proportion of retirees relative to its population and its excessively high rates of deposit account savings. It is the market that should perhaps be watched most closely given that interest rates are positive and increasing for the first time in many years, and it has seen its stock market double in the past two years, according to the Morningstar Japan Index. A gradually improving regulatory environment coupled with its successful tax-advantaged Nippon Individual Savings Account shows signs of some cash being moved to investment. Overall grade: B

The EU countries benefit from a solid base of disclosure and product choice that supports the investor experience, but various EU- and national-level initiatives to grow the investor base are at too early a stage to have had any material impact. For example, Italy (overall grade: C) has started the introduction of auto-enrollment, and Germany (overall grade: C) is seeking to reform its pension system; those legislative changes are expected to be finalized in 2026. Italy and France (overall grade: C) have existing tax-advantaged investment accounts, similar to those recommended by the EU, while Spain (overall grade: C) is also considering their introduction. The Netherlands (overall grade: B) leads among the EU member states thanks in part to its high workplace pension coverage through sectorwide schemes.

What Makes a Market Successful?

Our research shows that there is no single policy lever capable of transforming savers into investors. Instead, successful markets tend to combine several reinforcing elements:

• Well-designed retirement systems
• Accessible investment products
• Supportive tax policies
• Effective advice channels
• Transparent disclosures
• Competitive fees
• Strong investor confidence

Ultimately, the transition from saver to investor depends not only on encouraging participation, but also on creating an environment in which investors can make informed decisions, trust the system, and remain invested over the long term.