UK households are feeling the strain of a more uncertain financial environment, with average estimated wealth falling by nearly a fifth over the past year, according to new research from St. Jamesโs Place (SJP).ย
St. Jamesโs Placeโs fifth Financial Health Report, conducted annually among 6,000 individuals across the UK, reveals that estimated average household wealth (which includes savings, investments and physical possessions but excludes property) has fallen by 17.5% over the past year, dropping from ยฃ126,482 in 2025 to ยฃ104,329 in 2026. The decline comes amid continued cost pressures, market volatility and ongoing geopolitical uncertainty.
This decline is reflected in how people view their financial situation, with more than twice as many saying their finances have worsened (34%) over the past 12 months than improved (17%).
Everyday financial confidence is also slipping. Just 37% now describe themselves as financially comfortable, down from 42% last year, while one in five (21%) say they are struggling financially, up from 16%. Fewer people also feel financially resilient (61% vs 65%), suggesting households are less able to cope with unexpected financial shocks.
For many, rising living costs remain the main driver. Seven in ten (69%) say this is the primary reason their finances have worsened over the past year, with the cost of food and essentials cited by over half (57%). Other factors include a lack of salary increase (19%), higher rent (13%) and increased tax bills (8%).
Planning boosts wealth at every income level, but uptake remains stagnant
However, while financial pressures are weighing on households across the UK, the research highlights big differences in outcomes depending on how people manage their finances. Households with a plan4 in place to manage their money are consistently in a stronger position, both holding more wealth and feeling more confident about their finances,
On average, households with a financial plan say they have ยฃ157,416 in wealth, compared with ยฃ70,610 for those without. This advantage is seen across every income level. Among households earning under ยฃ20,000 a year, those with a financial plan are around ยฃ24,500 better off on average than those without. At the other end of the scale, the gap rises to nearly ยฃ200,000 for those earning over ยฃ80,000.๎๎
| Income group | Average level of overall wealth | With a financial plan | Without a financial plan | Difference between those with / without a financial plan |
| Up to ยฃ20k a year | ยฃ40,283 | ยฃ59,223 | ยฃ34,699 | ยฃ24,524 |
| ยฃ20,001-ยฃ40k a year | ยฃ77,017 | ยฃ89,833 | ยฃ69,178 | ยฃ20,655 |
| ยฃ40,001-ยฃ60k a year | ยฃ146,095 | ยฃ162,669 | ยฃ127,107 | ยฃ35,562 |
| ยฃ60,001-ยฃ80k a year | ยฃ199,457 | ยฃ216,186 | ยฃ171,829 | ยฃ44,357 |
| Over ยฃ80k+ | ยฃ474,277 | ยฃ519,634 | ยฃ325,443 | ยฃ194,191 |
The benefits extend beyond wealth. Seven in ten (72%) say having a financial plan makes them feel more confident about their financial position, while half (51%) describe themselves as financially comfortable, compared with just 29% of those without a plan. Three quarters (76%) also say they feel financially resilient and able to cope with unexpected changes, compared to 52% of those without a plan.
However, despite these clear advantages, uptake has remained flat. Fewer than four in ten (38%) people have a financial plan in place, unchanged since the research began tracking the nationโs financial health in 2022.
Financial engagement and wealth vary across the UK
Levels of financial engagement and household wealth vary significantly across the UK. Whilst there are a number of factors influencing this, there is a continued correlation between household wealth and planning.
London stands apart, with average household wealth of ยฃ171,455 and the highest proportion of people with a financial plan in place (46%). By contrast, planning levels are lower in regions such as Wales (30%), Northern Ireland (33%), and Yorkshire and the Humber (35%) where average household wealth is also significantly lower at ยฃ86,847, ยฃ100,534, and ยฃ73,488 respectively.
Elsewhere, 40% of people in the North West have a financial plan, with average household wealth of ยฃ82,968, while in Scotland 37% of people are planning and average wealth stands at ยฃ96,918.๎๎
| Wealth across the UK | Perceived household wealth | Proportion with a financial plan in place |
| London | ยฃ171,455 | 46% |
| Scotland | ยฃ96,918 | 37% |
| West Midlands | ยฃ120,093 | 39% |
| North East | ยฃ103,934 | 35% |
| East of England | ยฃ99,829 | 36% |
| North West | ยฃ82,968 | 40% |
| South East | ยฃ90,581 | 35% |
| East Midlands | ยฃ111,109 | 35% |
| South West | ยฃ86,032 | 37% |
| Northern Ireland | ยฃ100,534 | 33% |
| Yorkshire and the Humber | ยฃ73,488 | 35% |
| Wales | ยฃ86,847 | 30% |
Alexandra Loydon, Group Advice Director at St. Jamesโs Place, says: โMany households are feeling worse off, with living costs and heightened global uncertainty weighing on confidence and, understandably, affecting how people feel about their finances and the future.
โWhat our research shows, however, is that while these pressures are widely felt, the outcomes people experience can be influenced by their attitudes to money management. Those who take a more structured approach to managing their money are better placed to build wealth, feel more confident and stay resilient, regardless of their income or circumstances. Despite this, the number of people with a financial plan has not increased over our five-year research period.
โAt a time when so much feels outside of our control, it becomes even more important to focus on the things we can influence. Having a clear plan for your money, and taking small, consistent steps to manage it, can make a meaningful difference โ helping people feel more in control and better prepared for whatever comes next.โ
SJP outlines simple steps to help build a financial plan:
1.) Identify your financial goalsย โ Start by being clear about what you want your money to do for you. This could include short-term goals, such as building an emergency fund or paying for a holiday, and longer-term goals, such as buying a home or saving for retirement. Clear priorities can help shape better decisions and make planning more manageable.
2.) Understand your current positionย โ Take stock of your income, outgoings, savings, debts and assets. Understanding where your money is going can help identify areas to adjust and create opportunities to save or invest more consistently.
3.) Build financial resilienceย โ Having a financial buffer is increasingly important. Building accessible savings for the short-term, to cover unexpected costs or changes in income can provide greater confidence in uncertain times. As our research shows, investing over the long term is also key when it comes to building financial resilience. Even small, regular contributions can build up over time.
4.) Think about saving and investing for the long termย โ Cash savings play an important role, particularly for short-term needs. But longer-term goals require a longer-term approach. Where appropriate, investing can help build wealth over time, especially when started early and maintained consistently.
5.) Review your plan regularlyย โ Financial circumstances change. Reviewing your plan as your situation evolves can help ensure it remains aligned with your goals and priorities.
6.) Consider seeking professional adviceย โ For those who would benefit from additional support, particularly in more complex situations, professional advice can provide clarity and structure. As this report shows, those who seek advice are often better placed to navigate uncertainty and build stronger financial foundations.
