UK could unlock £137bn in retail investments by boosting financial confidence 

• The investing confidence gap could be costing UK individuals £37,000
• 38% cite fear of losses in a downturn as the leading barrier to investing
• Brits are more than twice as confident in saving (84%) as they are in investing (39%) according to Moneybox’s latest Financial Confidence Index

 
An estimated £137 billion could be unlocked for retail investments across the UK by improving financial confidence, according to Moneybox’s second annual Financial Confidence Index. The index highlights 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 simultaneously 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. For those focused on building wealth, investments have historically outperformed cash over time. Which is why the Government has been keen to get more UK adults investing. However, the findings from Moneybox show a lack of confidence is stopping many from potentially improving their financial futures. Two-fifths (40%) of those surveyed indicated they would feel more confident investing if they understood the basics, while over a quarter (27%) would be more confident if they received guidance from a trusted source.

For some, the blocker to investing is more than just confidence. Risk of financial loss is a concern for nearly two-fifths (38%), this concern is lower among younger investors aged 18-24 (22%) who are instead more apprehensive about their lack of understanding of how investing works (26%). This is a sign that education could be crucial to helping more understand investments and risk.

Other common obstacles 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 says that boosting individual financial confidence has to be taken into account alongside policy changes.

“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 saving remains overwhelmingly higher (84% in 2025, up from 79% in 2024). This contrast is highlighted by the fact that since the start of 2025, only 11% of individuals have transitioned money from savings into investments.

Brian Byrnes continued: “Both saving and investing play a vital role in building wealth and financial security, depending on a person’s goals and circumstances. 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.”

Against the backdrop of the Government actively exploring how to to encourage broader retail investment, Moneybox’s findings show there is a lot more work to be done.
 

Methodology
 
Consumer research was conducted by One Poll on behalf of Moneybox from 6th to 14th May 2025 amongst 4015 UK Adults, weighted to be nationally representative on the basis of age / gender / region. The investment confidence gap of £37,000 was calculated based on the average investment portfolio of those who are confident vs non-confident. And then extrapolated against the ONS national population estimates, this theoretically could equate to £137bn in untapped investment potential UK wide due to a lack of confidence.