In recent times we have been witnessing a convergence between politics, economic actors and professional consultancy on a tool – the Accumulation Plan or CAP – which allows us to achieve a series of common objectives, such as building wealth, learning to think by objectives, reducing inequalities and strengthening the financial security of families. This is what Pictet Asset Management explains, dedicating an in-depth study to this tool.
What are PACs
PACs are essentially investment strategies that allow you to build assets over time by paying periodic sums of even small amounts of 50-10 euros (usually monthly, quarterly or annually) into financed instruments such as mutual funds or ETFs, rather than investing all the capital at once. This guarantees accessibility to all and a reduction in risk.
The accessibility of PACs
In a context of discontinuous incomes, volatile markets and demographic aging, the regular and automated setting aside of even small amounts represents the most reasonable and sustainable response, because it transforms saving into a structural and accessible habit, regardless of age.
A political lever to encourage savings
The accessibility of the CAP has translated into concrete choices: in several countries, national governments, with the support of employers and financial institutions, have promoted savings accumulation programs. Among the best known are the Individual Savings Account (ISA) in the United Kingdom, the Riester-Rente and Frühstart-Rente plans in Germany (in which the state pays 10 euros per month to all minors), and the Investment Savings Account (ISK) in Sweden. All these programs share the objective of encouraging long-term savings, often through tax breaks or public contributions.
CAP as a welfare tool
The recent European Savings and Investments Union (SIU), founded in July 2025, aims precisely to channel household savings towards productive investments, strengthening the habit of accumulation and reducing dependence on short-term instruments. What emerges, therefore, is a clear political signal: Europe sees the Accumulation Plans as a strategic lever for growth, financial stability and economic autonomy. The same approach is also evident outside Europe. In the US, 401(k)s and Trump Accounts/Baby Bonds push automatic lifetime accumulation; in Asia, models such as Singapore’s Central Provident Fund or the Japanese NISA and Junior NISA plans make planned savings a truly national financial “infrastructure”. But there are also successful cases not far from us: the Trentino New Born Provision initiative recognizes the economic and social value of starting to save profitably early, making full use of compound interest. An investment that not only has economic purposes, but also cultural and social ones. The Accumulation Plan is therefore one of the best tools available on the market, because it combines operational simplicity, financial effectiveness and social impact. This is why it is pushed by politics, which uses it as a lever for modern welfare; from the economy, which integrates it into social security and production systems; and by professionals, who recommend it as the most robust solution for most people.
