New findings from the third edition of BlackRock’s People & Money study, conducted with YouGov in 2025, show that the desire to beat cash savings rates and seize more control over their financial futures are the key drivers for people in Europe to start investing.
The survey offers an in-depth look into the motivations and financial behaviours of more than 40,000 people across 15 European countries, while tracking the evolution of ETF ownership, up by 69 per cent across Europe since the survey started in 2022.
Top motivations to start investing
The study reveals that 42 per cent of UK investors began investing because they realised it could grow their money more effectively than cash savings, the most-selected reason, highlighting a shift in investors’ focus toward long-term financial security.
Gen Z (18–24-year-olds) and younger millennials (25–34-year-olds) are the generations that are likely to be motivated by Fear of Missing Out, with 22 per cent citing it as a key driver to start investing vs. 14 per cent amongst investors aged 35 and over. This is either because they saw a great entry opportunity or saw others grow their wealth and did not want to miss out.
However, the biggest contrast between generations is encouragement by friends and family, 18 – 34-year-olds are more than twice as likely to say that this is why they began investing, compared to other age groups (27 per cent vs. 12 per cent among those aged 35 and over).
Gen Z like digital investing. 28 per cent say they started because they could invest easily on their phones. Meanwhile, younger millennials were motivated because they wanted more control over their financial futures (36 per cent) and after learning more about investing, realising it was not as complex as they initially thought (27 per cent).
Timo Toenges, EMEA Head of Digital Wealth at BlackRock says: “Our survey shows that more than four in 10 UK investors chose to invest after realising their cash savings were not delivering the best return for them, and around a third started because they wanted to gain more control over their financial future.
“This reflects a growing recognition that investing can be an avenue to help build long-term financial security. Yet GBP1.7 trillion is sitting in cash deposits across UK households. These findings highlight the enormous potential for people across the UK to make their money work much harder for them.”
The next wave of ETF growth
The research shows that ETFs have seen an impressive surge in popularity as 32.8 million people are now ETF investors across Europe, up from 19.3 million since 2022.
With an annualised growth rate of 19 per cent since 2022, they are the third most-owned investment vehicle in Europe. In the UK, there are now 2.1 million ETF investors, placing it fifth among European markets, averaging an annualised growth rate of 27 per cent since 2022.
ETF growth in the UK has been strongest among female investors, up 86.2 per cent since 2022, and younger investors (aged 18–34), up 87.5 per cent, highlighting the expanding appeal of ETFs among new generations of investors.
Indeed, nearly half of ETF investors in the UK are currently under 35 (46 per cent), a younger investor base than in most European markets. Adoption has also increased across all income groups, pointing to ETFs’ widening accessibility.
Looking ahead, 1.9 million people in the UK are very likely to invest in ETFs in the coming year. Of those, 1 million are predicted to be new ETF investors (a 50 per cent increase compared to the current ownership base).
Among this group of current non-ETF investors, around 9 in 10 (90 per cent) are under the age of 44, reinforcing the generational shift already underway.
Notably, the UK is one of just five markets, together with Germany, France, Italy, and Spain, that are predicted to account for 77 per cent of the European growth in future ETF investors in the coming 12 months.
However, despite the increasing adoption of ETFs, awareness of ETFs in the UK is the lowest across Europe – almost two-thirds of adults (64 per cent) have never heard of ETFs, demonstrating the importance for increased financial education.
Timo Toenges adds: “The research shows ETFs are fast becoming the investment product of choice for younger generations. Their simplicity, low cost and ease of access make them ideal for first-time investors, especially those driven by seeing others grow their wealth and not wanting to miss out. To help them invest with confidence, it’s crucial to pair this convenience with straightforward, accessible education on risk and returns.”
ETF appeal and preferences
When asked the reasons for choosing ETFs, UK ETF investors cite diversification (59 per cent), a good way to start investing (35 per cent), potential for better returns than cash savings or other investments (43 per cent) and the ability to invest small amounts regularly (32 per cent).
18–34-year-olds are more likely to make an investment decision following a recommendation from friends or family, with 14 per cent pointing to it as a reason to invest in ETFs, compared to only 4 per cent of investors aged 35 years and older.
Equity ETFs remain a top product choice for UK ETF investors who say they are very likely to invest in the next 12 months (53 per cent) and when asked about regional ETF investments, 74 per cent of people planning to invest in ETFs over the next year selected UK or European exposures vs 51 per cent planning to invest in US investments.
The top behaviours of a successful investor
Half of UK investors (50 per cent) prioritise staying calm when markets go up and down and setting money aside regularly (35 per cent) when asked about the key behaviours to become a confident and capable investor. In contrast, 44 per cent of UK non-investors say, “understanding risks” is a top priority, followed by “understanding the basics of how investing works” (37 per cent).
Timo Toenges says: “We know that building wealth is about consistency, not timing the market. Making investing a regular habit, even with small amounts, is one of the most effective ways to achieve long-term financial well -being. Our research shows that ETFs are opening the door for millions of new investors, even those starting out with just a few pounds and it’s never been easier to take the first step towards long-term financial security. ”
