Instead they hold about 38pc of their non-property assets in cash and bank deposits, which is above the EU average of 30pc. In America, the figure is just 11pc.
The findings are contained in a new report on retail investment by the Central Bank, which concludes that Ireland has among the lowest levels of direct participation in capital markets in the EU.
Shares are particularly unpopular in Ireland, representing less than 2pc of the value of investments.
Allocation to listed equity is highest in Finland, at close to 14pc.
Only 0.4pc of Irish household investment is in bonds. By contrast, Hungary and Malta have the highest weightings to debt securities, at 13pc and 11pc.
Ireland also has one of the lowest levels in the EU of holdings in investment funds, which have a weighting of about 2.2pc. The comparable figure for Belgium is 17pc.
Comparing data on the financial assets of Irish households against their EU counterparts, the Central Bank found they hold a greater share of wealth in property, life assurance and pensions.
Wealthier households are responsible for the vast majority of participation in capital markets, at 78pc. Retail investors are more likely to be better educated, in a job, male, aged between 35 and 54, and living in Dublin.
“Overall, a picture emerges of a wealthier cohort in society in Ireland, well served by the existing structures of the investment market, which provides them with access to a full range of products and to appropriate levels of advice and support, including through personalised portfolio management services,” the report says.
“However, a large cohort of Irish consumers are not accessing investment opportunities as a result of issues around [getting] information and advice, risk aversion, perceptions of exclusivity and low levels of financial literacy.”
Shares are particularly unpopular in Ireland, compared with many other countries in the EU. Photo: Bloomberg
About 10pc of people report owning crypto assets, and they are predominately young males.
The amount invested tends to be small, just €2,266 on average, with more than half of investors saying “curiosity” was their reason for buying.
Colm Kincaid, deputy governor of the Central Bank, said: “A properly functioning financial market must reflect and serve the needs and preferences of all consumers and investors.
“The research shows that, as things stand, financial services is not effective in reaching the full population of potential investors.
“This means Irish households may not be getting the full benefit of what financial services could do to help them provide for their future.”
A separate study by Banking and Payments Federation Ireland (BPFI) has found more than one-third of Irish people have less than €5,000 worth of savings in their bank accounts.
With only 43pc of those aged from 55 or over reporting having more than €10,000 saved, most people are prioritising short to mid-term financial needs, such as holidays, rather than retirement or future income.
Fewer than half of adults hold any investments, and 72pc of investors prefer low-risk options.
Brian Hayes, the chief executive of BPFI, said: “Traditional investment vehicles such as funds, stocks and bonds are the most common choices of investors preferring low-risk approaches.”
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