Brits' financial confidence grows despite economic uncertainty, study shows

Brits' financial confidence has grown in the last 12 months despite economic uncertainty, with many feeling more assured when it comes to saving, investing, retirement and managing their personal finances than they did in 2024.

Despite a volatile stock market and sinking interest rates, a new study involving over 4000 adults reveals that 40 percent now feel 'very confident' in handling their finances, up from almost 10 percent the previous year. In addition, 84 percent now feel more confident in their ability to save. Four in ten say this is because they now have an ‘emergency fund’ - a pot of money set aside for any unforeseen expenses.

In another positive development, the proportion of adults without any form of savings or investments has nearly halved. Now, 83 percent boast some form of savings – up from 75 percent – and active investors have grown by 10 percent.

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There's good news on the credit front too; average credit card debt has dipped below £2,000, falling from £2,096 to £1,995.

However, the Moneybox-commissioned research indicates that while faith in retirement preparations has improved, a mere 21 percent feel 'very confident' about securing a comfortable retirement.

Brian Byrnes, head of personal finance at the platform, said: "There is still much more the financial services industry can do to support people on this journey to move towards their financial goals with confidence.

"Whilst providers like Moneybox are working to make tools and information as accessible as possible - and positive initiatives like targeted support are on the horizon - the financial services industry cannot take its eye off the ball."

The study found that more people are taking control of their finances, describing their planning as "structured and comprehensive", and many are learning about personal finance topics.

Belfast has the most financially confident people in the UK, followed by London and Manchester, but almost all cities have seen a rise in confidence over the last year.

Brian Byrnes said: "The government, regulators and the industry need to match their drive and momentum and commit to doing all they can to close the advice gap and help people make informed financial decisions with greater confidence.

"These results show how far people have come - learning from the economic challenges of recent years and taking control of their financial future.

"They show that financial confidence is like a seed: once planted, with a little encouragement, it grows - prompting people to spend more time learning, planning, and engaging with their money.

"That's the real story here: resilience, progress, and the power of confidence to transform financial lives."