Scottish Widows Investment Pulse: Positive start to the year buoys retail investor confidence despite turbulent geopolitical environment

Three in ten (30%) UK investors generally contributed more to their portfolios than they usually do in the first quarter of 2026, with half (50%) reporting positive returns, according to new Scottish Widows research. Looking ahead, a further 30% plan to increase the amount they invest in the next three months.

The inaugural Scottish Widows Investment Pulse surveyed over 2,000 non-advised UK investors on their level of investment confidence, expectations for the future, motivations and investment plans. 

Cost of living concerns drive investment 

In the first three months of 2026, investors overall contributed an average of £2,413 to their portfolios, while 19% reduced their investments. 

While a fifth (21%) said they made little or no changes to their portfolios in Q1, other investors chose to:

• Move some investments into cash (15%)
• Invest more in individual shares (14%)
• Invest more in cryptocurrency (13%)
• Invest more in gold (11%)

Personal circumstances had a greater impact on people’s shift in investments, compared to economic and geopolitical influences.

Factors influencing investment changes in the past three months	Influence	No influence
Cost of living/ household expenses	71%	29%
Change in personal financial circumstances	66%	34%
Inflation	63%	37%
Bank of England base rate	50%	50%
UK fiscal policy/budget	49%	51%

Confidence high amidst uncertain geopolitical backdrop

In Q2, bullish investors plan to invest an average of £2,920. Just 13% say they plan to reduce the amount they invest. More than four in ten (44%) expect their investments to perform well in the next quarter, rising to 54% when asked about performance expectations over the next year. 

Leading factors driving these investors’ decisions include a desire to build their long-term wealth (44%) and a feeling that it is a ‘good time to invest’ (29%). A quarter (24%) are being driven by UK economic conditions, while others are maximising unused ISA allowances before tax year-end (23%). 

UK holdings prove popular

Investments are generally spread evenly across different holdings (20%) with a clear preference for individual shares (19%), and UK-held investments (62%). 

The main approach to investing is via regular, one-off contributions (26%), with a fifth (20%) opting for a ‘set-and-forget’ automated approach. Others are adopting less structured methods, with 23% investing on an ad-hoc basis and 18% investing occasional lump sums.

Achieving longer-term goals such as growing wealth (43%) and boosting retirement savings (42%) are the main reasons people choose to invest. Other motivations include building an emergency fund (28%) or saving for a holiday (17%).

Manuel Pardavila-Gonzalez, Managing Director of Investments at Scottish Widows, said: “Despite a volatile market, investors demonstrated confidence in the first quarter of 2026 – increasing their investments even with geopolitical headwinds threatening international markets and potential returns. 

“While uncertainty looks set to continue, more bullish investors are driven by their own financial motivations, not just global shocks – looking to increase the amount they invest to grow their wealth, support retirement savings or mitigate the cost of living.

“Looking ahead, the next edition of the Pulse will track whether investors’ optimism materialises, or whether the events in the Middle East will prove to have a cooling impact on markets.”