How confident do you feel as an investor? There are so many factors that can impact confidence, from level of knowledge and experience to market movements and professional support. Psychologically, your approach to investing is inextricably linked to your emotional state and cognitive biases – are you overconfident, are you risk averse, perhaps you tend to follow the herd or can sometimes be irrational with decision making? Success in financial markets can hinge on so many factors.
A recent ‘Investor Confidence Barometer,’⁴ which has surveyed 1,000 adult investors holding a pension and investable assets of least £100,000, has provided some interesting insight.
Some of the key findings suggest that investors are generally confident about their finances this year and plan to boost their contributions. However, many have an emotional reaction to market movements, which may impact their long-term plans and discipline.
Some investors admit to having made mistakes in the last year, with main issues including taking too little risk (24%) and taking too much risk (18%). Non-advised investors have a tendency to over-allocate to cash, they exhibit lower levels of confidence and are more likely to react emotionally to headlines. Meanwhile, some 22% of non-advised investors have reacted emotionally to markets, compared to just 13% of advised investors.
There is an interesting division between advised and non-advised investors, with almost three quarters (74%) of those taking advice planning to increase their contributions over the year ahead, versus half of non-advised investors. Those who take advice seem to have a ‘deeper investable capacity and long-term strategy’ adding higher amounts (£38,983 versus £25,908 on average for non-advised).
The constancy of advice
The report findings highlight that investors are clearly still seeking ‘the human connection that in-person advice brings to the table’ reinforcing the vital role of advice in changing behaviours to improve people’s long-term outcomes. The findings suggest, ‘As economic uncertainty, technological transformation and regulatory change collide, the role of advisers as a trusted partner to clients holds true.’
We can help you maintain discipline and focus to help you work towards effectively achieving your long-term financial ambitions.
⁴Scottish Widows 2026 (survey conducted prior to the Middle East conflict)
• Almost two-thirds of investors (62%) are looking to increase their investments over the next year
• Long-term planning is the main driver for those intending to increase contributions (67%), followed by expectations of strong returns (47%)
• Adviser guidance influences 43% of those increasing investments and is the single biggest driver (60%) among advised investors
• Over three quarters of investors (77%) are confident about achieving portfolio growth – falling to 61% without adviser support, ‘highlighting the critical role of advice in converting confidence into outcomes’
• Confidence in retirement funding rises from 68% for non-advised investors to 82% for those receiving advice
⁴Scottish Widows 2026 (survey conducted prior to the Middle East conflict)
