Psychologists have long recognised ‘Imposter Syndrome’ in the workplace and job market, but new evidence suggests it’s also affecting how Britons manage money, invest and plan for the future.
A new study from wealth manager Quilter reveals that over three million UK adults are suffering from Financial Imposter Syndrome (F.I.S), a psychological state manifesting in chronic doubt about our financial skills, achievements and entitlement. A further five million UK adults show signs of the condition. This outlook is shaping the way millions of Britons save, spend, and invest.
Conducted in partnership with financial psychotherapist Vicky Reynal, the study reveals that 16% experiencing at least three of the symptoms of F.I.S including attributing financial success to external factors like luck (19%) or help from others (13%), faking financial know how (9%) and doubting their own financial management skills (23%).
As such, people are stepping back from actively managing their money or seeking professional advice, potentially leaving them worse off.
Financial Imposter Syndrome isn’t confined to those on lower incomes or with few assets. In fact, those in higher salary brackets are more likely to experience it. Nearly a quarter (24%) of people earning over £80,000 admit they feel like financial frauds, showing that even higher earners can be gripped by self-doubt.
Quilter is partnering with financial psychotherapist Vicky Reynal, who explores the emotional roots of F.I.S and how people can break the cycle.
Reynal says: “At the root of Financial Imposter Syndrome is shame – a sense that we should be doing better with our money than we are, or, if we’re doing well, that our success is somehow undeserved or accidental.
“Money is complex, yet many of us were taught very little about it. We’re left to manage an asset that’s fundamental to our survival without a clear roadmap, so it’s no surprise that people can attribute financial success to luck and blame perceived failures on their own shortcomings.
“On top of this, we’re constantly exposed to skewed social comparisons, seeing others’ spending but not the full picture of their finances, which fuels feelings of inadequacy.”
Labelling yourself an “investor” doesn’t come naturally to many. Just 17% of over-55s see themselves as investors, compared with 40% of 18–34-year-olds, despite older adults typically holding more in pensions and property.
Quilter’s research suggests this isn’t about capability, but confidence. Only 16% of people hold a stocks and shares ISA and fewer than half (46%) of those see themselves as ‘investors’. Many quietly rule themselves out of financial planning, not because they lack assets, but because they don’t feel “expert” enough to take part.
However, the evidence shows that when a person does consider themselves as an investor, they feel more confident about money overall (79% vs. 68%). The Quilter study also reveals that when people have had financial success in the past, those who consider themselves investors are more likely to attribute this to their own money skills (46% vs. 29%).
Holly Tomlinson, financial planner at Quilter, says: “Financial Imposter Syndrome isn’t a niche issue, it’s locking millions out of planning, investing and getting help. Not because they don’t earn enough, or don’t have options, but because they don’t feel they’re allowed to take ownership of their finances.
“But money needs a plan, not perfection. No matter what stage in life you are, creating positive financial habits will move you closer to your goals. You can start small, for example opening a stocks and shares ISA, reviewing your pension contributions, or just talking through your goals with an adviser. These incremental gains all build up and help break down those barriers that are holding the nation’s finances back.”
Many of the UK’s biggest financial fears, such as not having enough for retirement (23%), being unprepared for the future (20%), or feeling stuck (17%), relate directly to planning, and as Financial Imposter Syndrome plagues many, the feeling of not belonging directly impacts their ability to move forward.
As a result, important steps are delayed. More than a quarter (28%) of adults haven’t sought financial advice because they don’t think they have enough money, despite 41% earning upwards of £70,000. Others fear being judged or overwhelmed by jargon. On average, Brits believe they need more than £72,000 in assets before seeking financial advice.
Even day-to-day financial behaviours reflect caution or avoidance. Only 12% contribute more than the auto-enrolment minimum to their workplace pension, and while 46% pay attention to budget announcements, many feel ill-equipped to act.
