Almost two in five, 39%, of people lack confidence with pension planning, while nearly half, 48%, said they don’t feel confident investing, according to a new study.
The research from Shepherds Friendly also showed that 43% aren’t sure which ISA suits their goals.
The lack of confidence leaves just 60% of people in control of their day-to-day financial decisions, with more than a third admitting they are not prepared for a financial emergency.
Some 41% of UK adults said their finances have had a negative impact on their mental health, while 36% said trying to understand their finances makes them feel stressed, and 37% admitted to losing sleep over their finances.
Two out of five, 40%, admitted they have struggled to manage their finances over the past year due to rising costs, while 34% aren’t confident they will achieve their financial goals, with 30% saying they have no financial goals whatsoever.
Derence Lee, chief finance officer at Shepherds Friendly, said: “Many people feel unsure about different areas of personal finance, from investing to insurance. But understanding key financial topics and the products that can help plan for the future is essential for feeling confident when making decisions about money.”
Just 23% of people passed Shepherds Friendly’s money literacy quiz, down from 49% in 2024. Men were more likely to pass than women (29% vs 17%), while only 9% of 18-24 year olds achieved a passing score.
Mr Lee said: “Improving financial literacy can benefit everyone, whether just starting out or already thinking about retirement.”
He said there’s a responsibility on providers of financial products to make their offerings easy to understand.
• Findings based on a survey of 2,001 Brits aged 18+ conducted between 03/09/2025 and 08/09/2025.