An annual survey of 4,000 adults found people are growing more confident when it comes to investing, but are also more aware of the risks, and are adapting their strategies accordingly
Brits are becoming savvier with their investments, but are also growing more cautious about where they put their money. An annual study of 4,000 adults found that 39 per cent now feel confident investing, a rise from 33 per cent in 2024. The research was commissioned by savings and investing platform Moneybox as part of its annual Financial Confidence Index.
Of those who have seen an increase in confidence, 40 per cent attribute it to understanding the basics of investing, while 35 per cent credit positive returns. The same number now know exactly how much risk they are comfortable with, shaping their investment choices.
It revealed that despite gaining knowledge and experience as investors over time, 68 per cent choose to take a cautious approach when it comes to their investing strategy. It comes after news of state pension payment changes for August as people told to ‘be aware’.
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The study found that so far this year, 23 per cent of investors put more money into a Stocks and Shares ISA towards the end of the tax year, using up as much of their allowance as they can before it resets.
In addition, 22 per cent increased their monthly investment contributions over the last year, while 14 per cent chose to diversify their investments in order to build a more resilient portfolio for the long term.
Meanwhile, 11 per cent of savers decided to move cash into investments this year in search of better long-term returns – which can be beneficial if done with an emergency fund already in place.
At the same time, some investors took riskier steps in unstable markets as 15 per cent sold part of their portfolio, while an equal number made changes due to geopolitical events. Additionally, 12 per cent shifted investments because of market volatility.
Brian Byrnes, head of personal finance at Moneybox, said: “It can feel unsettling to see the value of your investments fluctuate, especially when no one can predict exactly what comes next.
“But short-term market shocks are a normal part of investing, and history shows that markets recover from volatility over the long term. In fact, we’ve already seen this play out, with markets rebounding from the turbulence earlier this year when sweeping tariffs were introduced.”
Brian added: “The key is to focus on your time horizon and stay invested, rather than reacting to daily market noise. Even small, consistent steps, like contributing regularly or diversifying your portfolio, can make a real difference over time.”
When it comes to long-term financial goals, 20 per cent of Gen Z and 26 per cent of Millennials aim to build an investment portfolio to grow their wealth over time.
Younger generations are also the most confident when it comes to investing. Gen X and Baby Boomers were most likely to be concerned about a major market crash wiping out their investments, with 27 per cent and 29 per cent respectively expressing this worry.
This caution could reflect the older generations’ experience of major market crashes, from the dot-com bubble to the 2008 financial crisis.
While younger investors may feel more confident overall, Gen Z are also more likely to feel overwhelmed by financial matters – with 19 per cent citing this as a concern, while 15 per cent are more worried about a market crash.
Brian Byrnes, from Moneybox, added: “For anyone feeling unsure, start with what you can control, such as how long you are investing for and how consistently you contribute.
“Build gradually and use tools and guidance to make decisions that suit your goals and stage of life. It’s not easy, but the more people focus on the long-term, the easier it will be to invest with confidence.”