Latest St. James’s Place Financial Health report finds just 38% have a financial plan, unchanged over five years

 

  • Average UK household wealth1 falls 17.5% to £104,329 in 2026, down from £126,482 in 2025 amid continued economic uncertainty
  • More than twice as many people say their financial situation has worsened than improved in the last twelve months (34% vs 17%)
  • Households with a financial plan hold more than double the wealth of those without, yet less than half (38%) have a plan and uptake remains unchanged over five years

 

UK households2 are feeling the strain of a more uncertain financial environment, with average estimated wealth falling by nearly a fifth over the past year, according to new research from St. James’s Place (SJP).  

 

St. James’s Place’s fifth Financial Health Report, conducted annually among 6,000 individuals across the UK, reveals that estimated average household wealth (which includes savings, investments and physical possessions but excludes property and pensions) has fallen by 17.5% over the past year, dropping from £126,482 in 2025 to £104,329 in 2026. The decline comes amid continued cost pressures, market volatility and ongoing geopolitical uncertainty.  

 

This decline is reflected in how people view their financial situation, with more than twice as many saying their finances have worsened (34%) over the past 12 months than improved (17%).

 

Everyday financial confidence is also slipping. Just 37% now describe themselves as financially comfortable, down from 42% last year, while one in five (21%) say they are struggling financially, up from 16%. Fewer people also feel financially resilient (61% vs 65%), suggesting households are less able to cope with unexpected financial shocks.

 

For many, rising living costs remain the main driver. Seven in ten (69%) say this is the primary reason their finances have worsened over the past year, with the cost of food and essentials cited by over half (57%). Other factors include a lack of salary increase (19%), higher rent (13%) and increased tax bills (8%).

 

Planning boosts wealth at every income level, but uptake remains stagnant 
However, while financial pressures are weighing on households across the UK, the research highlights big differences in outcomes depending on how people manage their finances. Households with a plan4 in place to manage their money are consistently in a stronger position, both holding more wealth and feeling more confident about their finances,

 

On average, households with a financial plan say they have £157,416 in wealth, compared with £70,610 for those without. This advantage is seen across every income level. Among households earning under £20,000 a year, those with a financial plan are around £24,500 better off on average than those without. At the other end of the scale, the gap rises to nearly £200,000 for those earning over £80,000.

 

Income group Average level of overall wealth With a financial plan Without a financial plan Difference between those with / without a financial plan
Up to £20k a year    £40,283 £59,223 £34,699 £24,524
£20,001-£40k a year £77,017 £89,833 £69,178 £20,655
£40,001-£60k a year £146,095 £162,669 £127,107 £35,562
£60,001-£80k a year £199,457 £216,186 £171,829 £44,357
Over £80k+             £474,277 £519,634 £325,443 £194,191

 

The benefits extend beyond wealth. Seven in ten (72%) say having a financial plan makes them feel more confident about their financial position, while half (51%) describe themselves as financially comfortable, compared with just 29% of those without a plan. Three quarters (76%) also say they feel financially resilient and able to cope with unexpected changes, compared to 52% of those without a plan. 

 

However, despite these clear advantages, uptake has remained flat.  Fewer than four in ten (38%) people have a financial plan in place, unchanged since the research began tracking the nation’s financial health in 2022.

 

Financial engagement and wealth vary across the UK
Levels of financial engagement and household wealth vary significantly across the UK. Whilst there are a number of factors influencing this, there is a continued correlation between household wealth and planning.  

 

London stands apart, with average household wealth of £171,455 and the highest proportion of people with a financial plan in place (46%). By contrast, planning levels are lower in regions such as Wales (30%), Northern Ireland (33%), and Yorkshire and the Humber (35%) where average household wealth is also significantly lower at £86,847, £100,534, and £73,488 respectively.

 

Elsewhere, 40% of people in the North West have a financial plan, with average household wealth of £82,968, while in Scotland 37% of people are planning and average wealth stands at £96,918.

 

Wealth across the UK Perceived household wealth Proportion with a financial plan in place
London £171,455 46%
Scotland £96,918 37%
West Midlands £120,093 39%
North East £103,934 35%
East of England £99,829 36%
North West £82,968 40%
South East £90,581 35%
East Midlands £111,109 35%
South West £86,032 37%
Northern Ireland £100,534 33%
Yorkshire and the Humber £73,488 35%
Wales £86,847 30%

 

Alexandra Loydon, Group Advice Director at St. James’s Place, says: “Many households are feeling worse off, with living costs and heightened global uncertainty weighing on confidence and, understandably, affecting how people feel about their finances and the future.

 

“What our research shows, however, is that while these pressures are widely felt, the outcomes people experience can be influenced by their attitudes to money management. Those who take a more structured approach to managing their money are better placed to build wealth, feel more confident and stay resilient, regardless of their income or circumstances. Despite this, the number of people with a financial plan has not increased over our five-year research period.

 

“At a time when so much feels outside of our control, it becomes even more important to focus on the things we can influence. Having a clear plan for your money, and taking small, consistent steps to manage it, can make a meaningful difference – helping people feel more in control and better prepared for whatever comes next.”

 

SJP outlines simple steps to help build a financial plan:

1. Identify your financial goals – Start by being clear about what you want your money to do for you. This could include short-term goals, such as building an emergency fund or paying for a holiday, and longer-term goals, such as buying a home or saving for retirement. Clear priorities can help shape better decisions and make planning more manageable.

2. Understand your current position – Take stock of your income, outgoings, savings, debts and assets. Understanding where your money is going can help identify areas to adjust and create opportunities to save or invest more consistently.

3. Build financial resilience – Having a financial buffer is increasingly important. Building accessible savings for the short-term, to cover unexpected costs or changes in income can provide greater confidence in uncertain times. As our research shows, investing over the long term is also key when it comes to building financial resilience. Even small, regular contributions can build up over time.

4. Think about saving and investing for the long term – Cash savings play an important role, particularly for short-term needs. But longer-term goals require a longer-term approach. Where appropriate, investing can help build wealth over time, especially when started early and maintained consistently.

5. Review your plan regularly – Financial circumstances change. Reviewing your plan as your situation evolves can help ensure it remains aligned with your goals and priorities.

6. Consider seeking professional advice – For those who would benefit from additional support, particularly in more complex situations, professional advice can provide clarity and structure. As this report shows, those who seek advice are often better placed to navigate uncertainty and build stronger financial foundations.

 

 

Notes to Editors

 

A copy of SJP's Financial Health Report is available here.

 

  1. Estimated household wealth includes savings, investments and physical possessions. 

     

  2. The average number of residents per household as of 2023 ONS data is 2.36. The latest available figures are available here: Families and households in the UK - Office for National Statistics

     

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

    Previous years’ research was also conducted by Opinium:

  • Among 6,000 UK adults in two polls between 23rd December 2024 and 17th February 2025

  • Among 6000 UK adults between 16th – 25th October 2023

  • Among 4,000 UK adults between 17th – 21st October 2022

  • Among 4.000 UK adults between 25th October – 2nd November 2021

        Quotas and post-weighting were applied to the sample to make the dataset representative of the UK adult population. 

 

  1. A financial plan could include an active plan to increase savings and/or pension, or buy a property over the long-term, with an ambition and ability to act on the plan in the next 5 or so years.