Investing confidence among UK adults has reached a three-year high, with 40% now feeling confident about investing, up from 33% in 2024, but planned ISA changes risk undermining the growing momentum, Moneybox has warned.

The latest Moneybox Financial Confidence Index found that the proportion of adults holding investments has risen from 30% to 44% over the past two years. Growth in investing confidence has been particularly pronounced among younger adults - confidence among 25 to 34-year-olds has more than doubled, from 26% in 2024 to 57% in 2026.

However, almost two-thirds (63%) of adults are unaware of the planned ISA changes due to take effect in April 2027, while 37% of those who know about them say the reforms make them less confident about investing.

The changes include reducing the annual cash ISA allowance for under-65s from £20,000 to £12,000, restricting transfers from stocks & shares ISAs into cash ISAs and introducing a 22% charge on interest earned on cash held within stocks & shares ISAs.

Moneybox said the proposals risk adding complexity as the Government seeks to encourage more people to invest for the long term. While 83% of adults feel confident saving, only 40% feel confident investing. There is also a gender gap, with 52% of men confident about investing compared with 28% of women.

Brian Byrnes, director of personal finance at Moneybox, said: “It's really encouraging to see investing confidence at a three-year high, particularly among younger adults. But there is still a huge gap between how comfortable people feel saving versus investing, and that's largely because investing can still feel complex and confusing to so many people.”

The research, conducted by OnePoll in July, also revealed a substantial difference in net worth between financially confident investors and those who do not invest. Confident adults with investments had an average net worth of £340,000, compared with £112,320 among financially confident non-investors, a difference of £227,680.

Understanding investment basics was identified as a key factor in confidence by 65% of confident investors, while 51% cited knowing how much risk they were comfortable taking. Confident investors were also more likely to research financial products to match their goals (93%, against 68% of their counterparts) and make specific plans to achieve them (92%, against 65%).

Byrnes added: "If the Government wants to build on the progress already being made, any ISA changes need to be matched by greater support to help people understand how saving and investing should work together as part of a robust long term financial planning. Accessible guidance and reassurance are incremental to ensuring people not only start, but keep investing. Investment appetite across the public is growing, the Government' and industry should be mindful of initiatives which could undermine that confidence.”

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