As the new year begins, Britons have set clear financial priorities for 2026, with a strong focus on building safety nets and planning for the future. A recent survey commissioned by Pensions UK shows a significant shift in how people are approaching their money management, moving beyond immediate spending concerns to longer-term wealth growth.
Building Financial Resilience: Savings and Debt Reduction
Nearly one in three people (30 per cent) are aiming to cut their monthly spending this year, indicating a widespread desire for greater financial control. The commitment to establishing a 'rainy day' fund has grown notably, with 28 per cent of respondents making it a resolution for 2026, up from figures recorded in 2024.
Furthermore, over a quarter of the population stated an intention to start saving for a specific goal. Common targets include accumulating a deposit for a house, funding a holiday, or paying for further education. On the debt front, a fifth of people are looking to pay off what they owe, a slight decrease from the 22 per cent who had the same goal last year.
The Shift Towards Investing and Growing Wealth
While managing day-to-day finances remains crucial, more Brits are looking to make their money work harder. Over 10 per cent plan to open an Individual Savings Account (ISA) in 2026. Others expressed an intent to invest directly in stocks, shares, and other assets.
This trend follows government efforts in 2025 to encourage public investment in the stock market. Chancellor Rachel Reeves introduced measures in the Autumn Budget designed to discourage stockpiling cash. Key changes included reducing the cash ISA allowance to £12,000 and increasing dividend taxes, nudging people towards tax-efficient investment wrappers.
Pensions Take Centre Stage for Future Security
The survey highlights a growing public engagement with pension planning, spurred on by warnings from financial advisers about saving adequately for retirement. Nearly 30 per cent of Brits said they would increase their pension contributions this year, a substantial rise from the 20 per cent who planned to do so last year.
Other popular pension-related resolutions include checking the total value of pension pots, reviewing projected retirement income, updating beneficiaries, and consolidating multiple pensions. This last action is particularly urged by experts, as over three million forgotten pension pots worth an estimated £31bn remain unclaimed in the UK, often left behind when employees change jobs.
Matthew Blakstad, deputy director of strategic policy and research at Pensions UK, commented on the findings. "The start of a new year is the perfect time to reset financial goals," he said. "While everyday needs often take priority, it is encouraging to see people increasingly willing to take action on pensions. Whether it’s a small increase in contributions, or just checking your projected income, simple steps today can make a real difference over time."
He concluded by emphasising that "balancing immediate responsibilities with long-term planning is never easy, but pensions remain a cornerstone of financial security." The data paints a picture of a nation becoming more proactive, aiming to secure both their present stability and future comfort.
