Workers from less privileged backgrounds half as confident they’ll retire comfortably

New research from money advice brand Octopus Money reveals a huge “money confidence gap” between workers from lower socioeconomic backgrounds and those who grew up better off.

Only 35% of professionals from less privileged backgrounds feel confident they will have enough to retire comfortably, compared with 67% of those from wealthier families.

The gap is mirrored in day-to-day finances: with just 35% of working-class workers saying their salary covers their goals and expenses, compared to 67% of better-off peers. While only 28% have started investing for their future, less than half the 63% from wealthier backgrounds.

And even when on the same salaries, those from lower socioeconomic groups are consistently 2–3 times more likely than those from wealthier backgrounds to say they couldn’t cover an unexpected £500 expense.

Nearly four in ten UK workers come from less privileged backgrounds, highlighting that millions of people are affected by this confidence gap. Experts say it’s proof that money know-how and confidence matter just as much as how much you earn.

Ed Fox, Inclusion and Culture Change Expert, said: “Social mobility targets without effective financial planning are like asking people to climb without a harness. Some might make it, but more will fall than climb.”

Octopus Money’s research also demonstrates that 1-1 financial coaching can significantly reduce this gap. People from less privileged backgrounds who received coaching alongside mentoring were 1.5 times more likely to feel comfortable about retirement and 22% more likely to feel financially resilient.

Financial planning also boosts employees’ projected retirement income by £7,239 per year, with average projected pension pots growing £315,000 larger than before personalised support.

Ruth Handcock OBE, CEO of Octopus Money, said: “Two people can earn the same pay – but one builds savings, invests, and plans ahead, while the other constantly worries about making ends meet. That’s not about effort, it’s about know-how. Nobody teaches you how to manage money if you didn’t grow up around it, and it leaves millions of people feeling stuck. Having a financial plan, and then a real human next to you to keep you accountable along the way, is what helps people finally feel confident about their financial future.”

Case study: Ella, 26, St Neots “For the first time, I feel comfortable with money”

Ella Rathiel, an admin worker in a property management company, says she did not learn about money growing up. “I grew up in a single-parent household, so I only saw one side of money – living on one wage. We never talked about saving. It was just about surviving on what we had,” she explains. Money wasn’t discussed at school either, leaving her unprepared when she started earning. “When you first get a job, you don’t know what to do with your money. You just spend it on rubbish. If I’d had those conversations earlier, I would have started saving at 18.”

Ella’s first real financial education came through Octopus Money, offered by her current employer. She learned practical steps like building a three-month rainy-day fund and reviewing her pension – and the sessions have transformed how Ella feels about money. “By the end of that first session, I felt emotional. I’d always been embarrassed about debt, but I realised I wasn’t alone. A couple of months earlier, money had been a constant source of stress, but now it feels manageable. Honestly, it’s probably the best thing I’ve done.”

Five tips to start feeling more in control of your money – Tom Francis, Head of Personal Finance at Octopus Money:

1. Have a plan: Start by setting out your short-term and long-term dreams, hopes and aspirations. Whether it’s paying off debt, saving for a holiday, or buying a home, writing it down helps you see what you’re working towards. Once you’ve got your goals, you can make a plan to get there.

2. Build an emergency fund: An emergency fund might sound serious, but it’s really just a savings pot for unexpected bills or surprises. Think of it as your safety net; it gives you peace of mind that if something goes wrong, you won’t have to rely on credit cards or loans. A good rule of thumb is to save enough to cover 3 to 6 months of your essential expenses.

3. Start small, it all adds up: You don’t need to overhaul everything at once. Cutting £50-£100 from monthly spending or setting up a standing order into savings can make a big difference over time. Little and often is what counts.

4. Know your regular outgoings: Look through your latest bank statement or app and make a list of your regular payments — things like rent, bills, subscriptions, or memberships. Once you know where your money’s going, it’s easier to spot where you can save.

5. Start talking about money: Money talk doesn’t have to be awkward. Chatting with friends, family or colleagues about saving tips, bills or pay rises can help you feel more in control, and you might pick up some great advice too.