Financial Health Report: Financial resilience falls but a plan can boost confidence

Households feel increased financial pressure

With more than one third of people (34%) reporting their finances have worsened over the past year (up from 31% in 2025), and one in five (21%) saying they are struggling financially, the latest Financial Health report from St. James’s Place paints a picture of significant financial difficulties for many households in challenging economic times. Two in five (40%) say worrying about their finances has negatively affected their mental health.

The survey, conducted by Opinium among 6,000 adults¹, found fewer people now describe themselves as financially comfortable, compared to 12 months ago (37% in 2026 compared to 42% in 2025).

Financial resilience has also fallen, with 61% of people saying they feel resilient now, compared to 65% last year. 

Cost of living pressures continue to be the main factor squeezing household finances.  Seven in ten people (69%) say rising costs, in particular food prices, are putting a strain on their budget.

Many people also have limited financial buffers available to them. Two fifths of people (38%) say they have less than £10,000 in savings, investments and possessions, and 14% have no wealth at all.

Adapting in challenging times

Households say they are adapting to cope and shore up finances in uncertain times. Fears over rising prices, such as food and energy costs, for example, are causing many people to change behaviours. Seven in 10 (70%) have cut back spending, with 34% shopping at cheaper supermarkets.

Around one in 10 (12%) are seeking out better interest rates for their savings, although around one in five (19%) have had to reduce or stop saving.

Others have taken steps to boost their income, such as by selling unwanted items or starting a side hustle. One third have made significant changes to their life plans due to financial pressures, including 8% who say they are delaying retirement and 7% who are looking to change jobs.

The value of a plan

People who have a financial plan in place are more than three times more likely to say their financial situation has improved in the past year (31% compared to 9% who say the same without a financial plan in place). And seven in 10 say having a financial plan makes them feel more confident about their future finances.

In real terms, having a plan in place means people are around £87,000 better off, on average, than those households without a plan.

But the number of people with a plan (38%) has been fairly static over the past year. The figure was 39% in 2025.

The number of people with a financial plan rises considerably (64%) where they have taken financial advice in the past 10 years.

There are also gender and age disparities. Only one third of women (33%) have a financial plan, compared to 42% of men.

And while half (50%) of 18-34 year olds have a financial plan, this falls to 38% among 35 to 54 year olds and to 28% for those aged 55 and over. This suggests younger households are leading the way when it comes to thinking about their financial future.

Across the population, around 35% of people say they invest. The relationship between investing and financial outcomes is also clear from the report. Among those who have been investing for more than five years, seven in ten (71%) say their wealth has increased over the past decade, rising to three quarters (75%) of those who have also had financial advice in the past 10 years. In contrast, just one in four (25%) non-investors say their financial position has improved in the last decade.

Almost nine in 10 (87%) of those who have been investing for five years or longer feel financially resilient. The report found women are more likely to lead on day to day finances and household budgeting (45% compared to 33% of men). But women continue to be less likely to invest than men, with fewer than one in three investing (27%) compared to 43% of men.

However, 40% of young people (aged 18 to 34) consider themselves to be investors, which paints a positive picture for financial resilience in the future.

Alexandra Loydon, Group Advice Director at St. James’s Place, says: “Across the UK, people continue to adapt to financial pressures in practical ways, from cutting back on spending to delaying major life events. While these behaviours reflect resilience, they also underline the challenge of balancing short-term pressures with longer-term financial priorities.

“The evidence from this year’s research points to a clear pattern. Those with a financial plan in place are more likely to report improvements in their financial situation in the short term than those without. They are also more likely to feel confident, resilient and in control of their financial future.

“However, engagement with these behaviours is not consistent across the UK. One of the most persistent divides is between men and women. While women are more likely to lead on everyday financial decisions such as budgeting and household spending, they are less likely to engage with longer-term planning, investing and advice.

“Addressing this imbalance will be critical to improving financial outcomes across the country more broadly.”

The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.

Source
¹Opinium survey of 6,000 UK adults between 17 March and 9 April 2026. Quotas and post-weighting were applied to the sample to make the dataset representative of the UK adult population.