An estimated £137bn could be unlocked for retail investments across the UK by improving financial confidence, according to new research by Moneybox.

The group’s second annual Financial Confidence Index highlighted a link between an individual’s overall financial confidence and their propensity to invest over the long-term.

Moneybox suggested that this “confidence gap” represents a £37,000 difference in average investment holdings between financially confident individuals and those who lack confidence, regardless of income.

Using UK population estimates from the Office for National Statistics (ONS), Moneybox estimated this figure could equate to £137bn in untapped investment potential UK wide due to a lack of confidence.

Moneybox’s findings were based on a consumer study among 4,015 UK adults and revealed that a lack of confidence could be stopping many from 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 was more than just confidence. Risk of financial loss was a concern for 38%, while other common obstacles to investing included a perceived lack of knowledge (33%), discomfort with the unpredictability of investing (33%), and ingrained beliefs that investments are inherently risky (22%).

Head of personal finance at Moneybox, Brian Byrnes, said: “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 Moneybox findings also showed that while there had been an improvement in investment confidence, up from 33% in 2024 to 39% in 2025, confidence in saving had remained significantly higher at 84% in 2025, up from 79% in 2024.

This contrast was highlighted by the fact that since the start of 2025, only 11% of individuals have transitioned money from savings into investments.

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

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