The Financial Conduct Authority (FCA) this morning released its latest Financial Lives survey, laying bare the growing concerns over financial resilience and investment engagement among UK consumers.
The wide-ranging dataset—considered a critical barometer of consumer financial behaviour—has prompted strong responses from across the financial services sector.
Retirement reliance on state pension raises concern
Dan Coatsworth, investment analyst at AJ Bell, highlighted one of the survey’s most alarming revelations: a third of UK adults have less than £10,000 saved in their pension. “That’s not such an issue for those in their twenties or early thirties,” he noted, “but for anyone in their forties or beyond, it’s a real red flag.”
He warned that too many people may be overly reliant on the state pension—currently paying just under £12,000 a year—which may cover basic living costs but leaves little room for a comfortable retirement. Coatsworth welcomed proposed FCA reforms such as targeted support and called for wider ISA simplification to remove barriers to investing: “Merging Cash and Stocks and Shares ISAs could be a game-changer.”
Cash holdings dominate despite inflation and lost growth potential
The survey also revealed that 3 in 5 adults with more than £10,000 in investable assets are holding at least 75% in cash—a trend that industry leaders believe exposes consumers to the hidden risk of taking no risk at all.
Chris Cummings, CEO of the Investment Association, warned: “Many people in the UK may be taking one of the biggest financial risks of all: taking no risk. We must create a culture of inclusive investment that educates and encourages people across the country to make financial decisions that benefit them both now and for the long-term.”
He called for reforms to ISAs and retail disclosures, as well as wider access to advice: “We’re committed to working with the regulator to boost the number of consumers holding investments, in line with our goal to increase this from just over 20% today to 75% over the next decade.”
Investment platforms see both responsibility and opportunity
Keith Philips, chief executive of The Platforms Association, said the findings present “both a challenge and an opportunity” for the platform sector, which is now the main channel for managing pensions and investments.
“With the government focused on growth, unlocking investment plays a key role in making that a reality,” he said. “Clearer saving-to-investing pathways, simple explanations of risk, and low-barrier entry points are all vital.” He also emphasised how forthcoming targeted support rules and the Consumer Duty framework align with platforms’ capabilities to improve outcomes.
Targeted support welcomed but advice must remain central
Steven Cameron, pensions director at Aegon UK, said targeted support could help move more consumers from cash to investments—particularly those with over £10,000 in investable assets. However, he stressed that this should not come at the expense of financial advice.
“While advice uptake has edged up slightly to 8.6%, that’s still far too low,” he said. “We must continue to promote advice alongside targeted support and free guidance services like MoneyHelper.”
Cultural barriers still holding back UK investment
Dom House, lead consultant at Simplify Consulting, said the report underlines long-standing challenges around investment uptake. He pointed to ingrained attitudes around risk and property ownership as major obstacles.
“Only 8% of UK wealth is in equities or mutual funds, compared to 33% in the US,” he noted, citing recent Aberdeen research. “Meanwhile, property accounts for half of UK household wealth.” While regulatory changes such as the FCA’s Advice Guidance Boundary Review may help, he argued that broader consumer education is needed to shift the UK’s risk-averse mindset.
Financial planning and confidence linked to resilience
Alexandra Loydon, director of advice at St. James’s Place, said the FCA’s data reinforces her firm’s own findings on the fragile state of financial wellbeing across the UK.
“Six in ten UK adults don’t feel financially comfortable, and over a quarter feel anxious about the year ahead,” she said. Loydon urged consumers to take small steps toward financial planning: “Even a basic plan makes a huge difference. Our research shows that those with a plan are nearly £110,000 better off than those without.”
She added: “The key is getting started—whether that’s saving a little each month or making sure you’re getting the best rates. These steps build financial resilience and confidence over time.”
The FCA’s full Financial Lives survey is available on its website. The data will inform ongoing policy and regulatory developments, including forthcoming consultations on targeted support and retail investment reform.
