UK adults' financial disengagement grows amid economic uncertainty, prompting wealth management shifts

Good morning. New research and industry moves at the start of 2026 paint a picture of growing financial disengagement for many UK adults even as parts of the wealth-management industry report strong flows and step up efforts to meet demand.

A survey by St James’s Place, reported by Money Marketing, found that 21% of UK adults say they have no financial aspirations for the year ahead, almost double the 13% recorded in July 2025. The study also shows 24% have no goals when looking across the next decade, with the disengagement most acute among those aged 55 and over, where 36% now report no financial aspirations compared with 25% six months earlier. According to the research, sustained cost-of-living pressures and wider economic uncertainty are primary drivers behind what St James’s Place describes as an “ambition gap.”

Other St James’s Place findings underline the wider unease. A separate report cited by FT Adviser found half of UK adults feel uncertain about their financial future and 26% feel more uncertain than two years ago; many are responding by cutting non-essential spending or drawing on savings. Industry polling commissioned by Money Marketing and reported by the Evening Standard suggests a further fragility in planning: 59% of adults lack a financial plan, and those without plans were far less likely to report wealth increases over the past decade than those with one. Research summarised by Cover Magazine adds that 31% of adults say their financial situation worsened over the past 12 months and that 60% do not feel financially comfortable.

The picture is therefore mixed: while substantial numbers appear to be disengaging or constrained, many who feel less sure about the future are nonetheless taking practical steps to shore up finances. Speaking to FT Adviser, St James’s Place highlighted that 72% of those feeling less certain had taken financial action, indicating that uncertainty is not universally synonymous with inaction.

Against this backdrop, wealth managers and platforms are pressing ahead with product distribution and client servicing developments. Tom Wooders, head of UK at Allfunds, wrote in Money Marketing about how WealthTech is enabling cross-border fund distribution as managers seek scale and operational efficiency amid differing tax, reporting and regulatory regimes. According to Allfunds’ commentary, digital, scalable solutions are central to managing the complexity of international fund distribution; Allfunds has also recently confirmed partnership activity with UK managers aimed at expanding fund access.

Platform performance data reported by Money Marketing shows that Transact attracted £1.0bn of net inflows in the three months to the end of December 2025 despite heightened uncertainty around the UK Autumn Budget. Flows were more active during the period but normalised thereafter, with funds under direction on the platform reaching a record £77.2bn at quarter end and average daily FUD up 16% year on year, the report said.

Industry appointments and governance moves continued to feature. Money Marketing reported Sarasin & Partners has appointed John Muir as business development director for Scotland, Northern Ireland and Northern England as the firm expands its intermediary relationships, while the Equity Release Council promoted Kelly Melville-Kelly to deputy chief executive in a wider organisational restructure.

The emerging policy for advisers and product providers is clear: as a significant cohort of adults either lacks a financial plan or says it has no aspirations, firms face both a risk and an opportunity. The risk is that disengagement will leave people exposed to adverse shocks; the opportunity is to translate uncertainty into engagement by offering straightforward, practical interventions , from emergency saving and cashflow planning to accessible advice on pensions and retirement income.

The industry debate is summed up by a comment published in Money Marketing: “London property is no longer the low risk cornerstone of wealth planning that many high net worth families assume it to be” – Simon Bashorun, head of advice in Rathbone’s Private Office. That observation underlines why advisers and platforms are being asked to broaden conversations beyond single-asset solutions and to help clients set realistic, resilient goals in an era of heightened economic uncertainty.