A new year has brought a mixed outlook for the nation's wallets. While a majority of UK adults are entering 2026 with financial optimism, significant demographic divides are casting a shadow, with women and Generation X feeling notably less confident about their monetary future.
A Nation Divided on Financial Prospects
According to research from investment firm Aegon, six in ten UK adults report feeling positive about their financial situation for the year ahead. This figure maintains the level of optimism seen in 2025 and marks a notable rise from the 52 per cent recorded in 2024. Within this group, 11 per cent stated they felt "extremely positive."
However, this overall buoyancy masks a persistent and troubling gap. The survey, conducted in January 2026, found that financial sentiment is far from uniform across gender and generational lines. Steve Cameron, Pensions Director at Aegon, noted: "As we move into 2026, it’s encouraging that overall positivity about finances has held up…however, the picture isn’t uniform."
The Confidence Gap: Women and Investing
The gender disparity is clear. Nearly two-thirds of men (around 65 per cent) expressed confidence in their finances, compared to just 55 per cent of women. This 'confidence gap' is a known issue within the financial services sector and is believed to be actively deterring women from investing.
Analysis from investment platform eToro suggests this has a "damaging" real-world impact. Their findings indicate that one in five women say the confidence gap puts them off investing completely, while 17 per cent feel less motivated, hindering their ability to grow their capital.
Compounding this issue is a significant pension wealth gap. Women often accumulate less pension wealth than men, increasing their risk of depleting retirement funds early. This stems from structural factors, including a higher likelihood of working part-time or taking career breaks for caring responsibilities, which leads to lower pension contributions over a working life.
Generation X: The 'Forgotten' and Pessimistic Cohort
The generational split is equally stark. Often dubbed the 'forgotten generation,' only 49 per cent of Generation X feel optimistic about their finances. This contrasts sharply with 68 per cent of millennials and 64 per cent of Gen Z.
Gen Xers, typically born between the mid-1960s and early 1980s, find themselves squeezed from multiple directions. They are juggling the need to save for retirement, pay off debts and household bills, while frequently supporting both ageing parents and younger adult children.
Experts have linked Gen X's rocky financial security to the decline of defined benefit pension schemes. These schemes, which guaranteed a secure, inflation-linked retirement income based on salary and tenure, have largely disappeared, leaving this generation to navigate more uncertain defined contribution plans.
Short-Term Pressures Dominate Concerns
For most Britons, immediate financial worries take precedence. The top concern is the ability to cover basic living expenses, as the costs of rent, bills, and food continue to consume a large portion of monthly income.
This was closely followed by goals like building emergency savings and having disposable income for leisure. In a telling sign of the focus on the present, just 12 per cent of respondents ranked building pension savings as their most significant financial priority.
"While short term financial pressures and concerns dominate, pension saving does feature as a top three priority for around one in eight," said Cameron. "With today’s continuing cost of living pressures, the short-term focus is not a surprise. But for many people, pension saving will need to be given greater priority in future if they are to build up an adequate income for retirement."
