New research suggests that as much as £137 billion could be unlocked for retail investments across the UK by improving financial confidence.
According to Moneybox’s second annual Financial Confidence Index, there is a “clear and compelling” link between an individual’s overall financial confidence and their propensity to invest for the long term, which could enhance personal net worth and benefit the UK economy.
The ‘confidence gap’ represents a £37,000 difference in average investment holdings between financially confident individuals and those who lack confidence, regardless of income.
Two fifths (40%) of those surveyed said they would feel more confident investing if they understood the basics, while 27% would be more confident if they received guidance from a trusted source.
The research also found 38% were concerned about the risk of financial loss. However, this worry is lower among younger investors aged 18-24 (22%) who are more concerned about their lack of understanding of how investing works.
Other common barriers to investing include a perceived lack of knowledge (33%), discomfort with the unpredictability of investing (33%) and ingrained beliefs that investments are inherently risky (22%), leading many to prefer traditional savings.
Brian Byrnes, head of personal finance at Moneybox said: “With the Government pushing for a shift toward investing, our data shows that any regulatory change must go hand-in-hand with boosting the financial confidence of the nation. People won’t act on what they don’t understand.
“While reforms like the Advice Guidance Boundary Review are a positive step, more needs to be done to close the confidence gap, incentivise positive behaviour, and help people make smarter financial decisions throughout life.”
The index also showed that while there has been an improvement in investment confidence up from 33% in 2024 to 39% in 2025, confidence in savings remains overwhelmingly higher at 84%.
Byrnes added that efforts to encourage investing must also respect the value of saving.
“The real priority should be equipping people with the knowledge to choose what’s right for their situation, so they feel confident using the full range of options available to them,” he said.
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