Overcoming attitudinal barriers to investing

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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, published last month.

The online savings and investment service provider states that 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 Moneybox data demonstrates that the “confidence gap” represents a £37,000 difference in average investment holdings between financially confident individuals and those who lack confidence, regardless of their income.

The gap was calculated based on the average investment portfolio of confident versus non-confident investors. It was then extrapolated against ONS national population estimates. Moneybox explains that this theoretically could equate to £137bn in untapped investment potential UK-wide due to lack of confidence.

For those focused on building wealth, investments have historically outperformed cash over time. Which is why the Westminster 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.

This consumer research was conducted by One Poll on behalf of Moneybox from 6 to 14 May this year.

In Scotland, 39 per cent of respondents said they would feel more confident investing if they understood the basics, while 27 per cent of Scots said they would feel more confident to invest if they received guidance from a trusted source.

For some, the blocker to investing is more than just confidence. Some 38 per cent of Scots polled cited fear of losses in a downturn as the leading barrier to investing.

Other common obstacles to investing among Scots revealed by the data include a perceived lack of knowledge (36 per cent), discomfort with the unpredictability of investing (29 per cent), and ingrained beliefs that investments are inherently risky (25 per cent), leading many respondents to state a preference for traditional savings methods.

The Moneybox Index also found that Scots are more than twice as confident with saving (82 per cent) as they are investing (39 per cent). Savings confidence in Scotland has increased from 79 per cent in 2024 to 82 per cent this year.

Encouragingly, investment confidence in Scotland has increased from 33 per cent in 2024 to 39 per cent in 2025. Since the start of the year, 11 per cent of Scots have transitioned money from their cash savings accounts into investments for better long-term returns.

Brian Byrnes, head of personal finance, Moneybox

Brian Byrnes, head of personal finance at Moneybox, says that boosting individual financial confidence has to be taken into account alongside policy changes.

He explains: “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 [a UK Treasury and FCA initiative to close the “advice gap”] 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.”

He continues: “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 UK Government actively exploring how to to encourage broader retail investment, Moneybox’s says its findings show there is a lot more work to be done.