Half of UK adults gripped by ‘crisis of certainty’ – with many cutting back spending or raiding savings to cope

A new study by St. James’s Place (SJP) shows that half of UK adults are gripped by a ‘crisis of certainty’ – and many are cutting back spending or raiding their savings to cope.

SJP’s Real Life Advice Report, now in its second year, lays bare the strain caused by the cost-of-living crunch and global turmoil. SJP surveyed 8,000 individuals to understand the role of financial advice and guidance in helping people reach their goals and manage challenges. The first chapter, launching today, explores levels of uncertainty across the nation and the impact of these feelings on financial behaviour.

The research found that half (49%) of UK adults feel more uncertain about their future than they did two years ago – with one in four (26%) feeling much more uncertain, and only 18% feeling more certain. This unease is driven mostly by the cost of living and inflation (76%), global events such as the war in Ukraine and conflict in the Middle East (57%), and concerns about economic stability (56%). Almost half (48%) feel uncertain due to the political climate, while 45% worry about government support for pensions, welfare and long-term care.

Sense of uncertainty driving people to take financial action

This growing uncertainty is having clear consequences on financial behaviour, with three-quarters (72%) of those feeling less certain taking financial action, including:

• Cutting back – 2 in 5 (41%) have reduced non-essential spending
• Drawing down – 1 in 5 (18%) have dipped into savings and 12% have taken on debt or credit to cover expenses
• Shoring up – A quarter (23%) have increased their savings or investments, with 20% boosting their savings pots or emergency funds and 6% making additional investments
• Holding back – 1 in 10 (13%) have delayed or cancelled a major decision, such as buying a home or changing jobs, while 13% have avoided financial decisions altogether

Mark FitzPatrick, CEO of St. James’s Place, comments: “Periods of uncertainty, especially when major or unexpected events happen, are unsettling. Seeing the immediate impact on finances, feeling unsure of how your money will recover or be affected in the medium and long term, and facing decisions of whether to take action or not, can feel overwhelming. In these moments, professional advice can be invaluable.”

The advice advantage in uncertain times

The findings show a clear gap between those who receive advice and those who do not. Half of those who take ongoing professional advice (51%) are optimistic about the remainder of 2025 compared to 34% who do not receive advice. Additionally, one in three (30%) people receiving ongoing professional advice feel more certain about the future than they did two years ago compared to only 13% who don’t take advice.

Meanwhile, more than 8 in 10 (85%) state they are currently ahead of or on track against where they thought they would be in terms of their savings and investment goals, despite the recent economic and market challenges, compared to 65% of those that don’t access advice.

Those who receive ongoing financial advice are also more proactive and spend more time considering their options when faced with financial uncertainty, with:

• 27% spending more time making financial decisions, compared with just 15% of the non-advised

• 24% seeking more information and guidance, compared to 4% of those not currently taking advice

• 16% looking for affordable investment opportunities within the market, compared to just 5% of the non-advised

Mark FitzPatrick, continues: “Our findings underscore how having more or greater access to financial advice boosts optimism and financial confidence, and helps people keep on track to meet their savings and investment goals despite the noise around them. However, the number of people accessing advice has remain unchanged for many years, and this must be addressed. 

“All parties – government, regulators and the industry – have a responsibility to ensure people can access support that helps them cut through complexity and build a better financial future. In addition to continuing to attract a new generation of advisers into the industry, supporting financial education and championing reforms that close the advice gap are key.”

To help more people access financial advice and guidance, both in times of uncertainty and more broadly, SJP is calling for focus on the following actions:

• Closing the advice gap through a new pipeline of support to help people with financial decision-making. This includes guidance, life-stage-relevant financial education, targeted support, simplified advice, and ultimately holistic financial planning. Consumers must be able to move seamlessly between these forms of support when needed.

• Ensuring proposals for targeted support are successful. Crucially, high-quality consumer testing will be vital to ensuring consumers recognise that with targeted support, unlike personalised advice, responsibility lies with them. Consumers must understand this distinction, as well as the nature of the decision they are making.

• The Financial Ombudsman Service must be fully aligned on the limitations and responsibilities of both targeted support and simplified advice, to ensure they are viable for firms to offer.

• Better financial education. Greater knowledge leads to better financial decisions. Ensuring young people are empowered to make informed financial decisions is not only a fundamental part of building a more financially resilient society, but also part of the long-term answer to the advice gap. We continue

to support calls for financial education to be included in the core curriculum for schools and are dedicated to equipping the next generation with the knowledge and skills to navigate their financial future confidently.

St. James’s Place’s Real Life Advice Report will be published in a series of chapters over the coming months, examining how advice helps individuals and families across generations to reach their goals and overcome challenges.