Money confidence rises to highest stage in two years

Despite ongoing economic pressures, Brits are feeling more confident with their money than two years ago.

An annual study of over 4,000 adults found financial confidence has risen from 79% to 85% since 2024. When it comes to savings, confidence has also risen from 79% to 83%. Despite this, fewer than half of adults feel comfortable with the idea of investing – although this has risen from 33% to 40%. Just over half say they now feel confident planning for retirement, up from 46% to 54%.

Those who are more financially confident are more likely to set long-term financial goals (85% vs 67%) and research financial products before making any major decisions (88% vs 71%). They are also more likely to put specific plans in place to help them save, invest and reach their financial goals (86% vs 70%).

The research was commissioned by Moneybox as part of its annual Financial Confidence Index, which tracks how confident people feel about saving, investing, retirement and managing their money day to day.

To help people better understand their relationship with money, the savings and investment platform has created a Money Mindsets quiz to uncover what shapes their relationship with money and what influences the financial decisions they make.

Brian Byrnes, a director of personal finance for Moneybox, said: “It’s encouraging to see financial confidence improving, but the gap between how people feel about managing their money today and planning for their financial future is still significant.

“Saving is often where people build their confidence first. The challenge is helping more people take the next steps – whether that’s putting money to work through investing, engaging with their pension earlier or building a plan for the longer-term goals that matter to them.

“Too often, people think they need to know everything or have large amounts of money before they can get started. In reality, confidence is built through action.

“Starting with what you can afford, building regular habits and seeing your progress over time can make longer-term financial decisions feel far more achievable.

“We all know knowledge is power, but confidence is what turns that knowledge into action.

“Our ambition should be to make saving, investing and planning for retirement feel like increasingly normal, accessible parts of managing your money throughout your life.”

In the Financial Confidence Index, Southampton was found to have had the biggest rise in financial confidence of any city, with confidence rising from 62% in 2025 to 69% in 2026.

The rise saw Soton move from joint bottom of last year’s rankings to become the UK’s most financially confident city.

Cambridge and Birmingham also saw some slight increases, with confidence rising from 64% to 68% and from 62% to 66% respectively. Edinburgh, Leicester and Plymouth also recorded smaller increases.

However Belfast saw the biggest drop, with confidence falling from 74% to 65%. Brighton and Hove also saw confidence dip, dropping from 70% to 64%.

The findings, which were carried out by OnePoll, also revealed that Brits who are financially confident rely on a broad mix of sources to help boost their financial confidence.

More than half (51%) turn to their loved ones for support, while four in 10 use financial advice websites and 23% look to news sites or socials.

Almost half, 46%, cited the rising cost of living as a challenge to retirement planning, while 31% simply don’t know how much they need to save to be able to retire comfortably in the future.

The impact of financial confidence is also reflected in long-term wealth. Brits who are confident with money estimate their average net worth at £228,000, compared with £74,000 among those who lack confidence.

Brian Byrnes added: “Building financial confidence isn’t about becoming an expert overnight or waiting until you have more money to get started.

“It comes from understanding what you’re working towards, taking manageable steps and building habits that can grow with you over time.

“For many people that might begin with building a savings buffer. From there, it could mean starting to invest for longer-term goals or paying more attention to their pension.

“The important thing is to keep moving forward and make your money work harder for the future you want.”

Brian Byrnes’ top tips to boost financial confidence

1. Give your money a purpose: Start by thinking about what you want your money to help you achieve in the short, medium and long term. Having clear goals can make it much easier to decide whether your next pound should be saved, invested or put towards retirement.
2. Build habits before chasing big numbers: You don’t need large amounts of money to start making progress. Saving or investing manageable amounts regularly can help turn good intentions into habits and give you confidence as you see your money build over time.
3. Make the move from saving to investing when it’s right for you: Cash savings can be important for emergencies and shorter-term goals, but for money you can afford to put away for five years or more, it may be worth considering whether investing could help you work towards your longer-term goals. Remember that the value of investments can go down as well as up.
4. Don’t leave your pension until later: Your pension is likely to be one of the biggest financial assets you build over your lifetime. Take some time to understand what you and your employer are contributing, where your pension is invested and whether you’re on track for the retirement you want.
5. Make progress easy to maintain: Where possible, use regular contributions and other tools that help you save or invest automatically. Removing the need to make the same decision every month can make it easier to stay consistent and keep progressing towards your goals.