Imagine two professionals earning exactly the same salary. One feels completely in control of their money, saving diligently and planning for a comfortable retirement. The other lives in a constant state of worry about bills, anxious they will never be able to stop working. This disparity, according to new research, has little to do with pay and everything to do with a person's confidence and background.
A significant money confidence gap is shaping financial behaviours across the UK, influencing everything from saving habits to retirement beliefs. This divide is preventing millions from achieving financial resilience, even when their earnings suggest they should be secure.
The Stark Reality of the Confidence Divide
Groundbreaking research from Octopus Money has quantified this problem. The study found that professionals from less privileged backgrounds are half as likely to believe they will have enough to retire comfortably. Just 35 per cent of those from lower socioeconomic backgrounds feel confident about retirement, compared with 67 per cent of their better-off peers.
This pattern extends to everyday money management. Only 35 per cent of working-class professionals say their salary covers their goals and expenses, versus 67 per cent from wealthier families. The gap becomes a chasm when it comes to investing: a mere 28 per cent have started investing for their future, less than half the 63 per cent of those from more affluent upbringings.
Perhaps most startling is that even on identical salaries, workers from lower socioeconomic backgrounds are up to three times more likely to say they couldn't cover an unexpected £500 expense. With nearly four in ten UK workers coming from less privileged backgrounds, this confidence gap affects a substantial portion of the population.
Inclusion expert Ed Fox offered a powerful analogy: "Social mobility targets without effective financial planning are like asking people to climb without a harness. Some might make it, but more will fall than climb."
Identical Incomes, Unequal Financial Futures
For years, efforts to improve social mobility have concentrated on education and job access. However, without financial resilience—the ability to save, invest, and plan for the long term—those from working-class backgrounds remain more vulnerable to economic shocks and less able to advance.
Ruth Handcock OBE, CEO of Octopus Money, explained the core issue: "Two people can earn the same pay—but one builds savings and plans ahead, while the other constantly worries about making ends meet. That's not about effort, it's about know-how. Nobody teaches you how to manage money if you didn't grow up around it."
The personal impact of this gap is illustrated by Ella Rathiel, a 26-year-old admin worker from St Neots. "I grew up in a single-parent household, so I only saw one side of money—living on one wage," she shared. "We never talked about saving. It was just about surviving."
Ella's experience changed when she participated in a financial coaching session through her workplace, which helped her build an emergency fund and review her pension. "By the end of that first session, I felt emotional," she recalled. "I'd always been embarrassed about debt, but I realised I wasn't alone. A couple of months earlier, money had been a constant source of stress, but now it feels manageable."
Building Confidence Through Education and Support
The research indicates that targeted support can effectively bridge this gap. Workers from less privileged backgrounds who received one-to-one financial coaching were 1.5 times more likely to feel confident about retirement and 22 per cent more likely to describe themselves as financially resilient.
Jackie Spencer from the Money and Pensions Service emphasised: "Financial education is key to building confidence. Employers play an important role in this. Children and young people who receive financial education are also more confident and build good habits."
Michelle Highman, CEO of The Money Charity, added: "Those from less privileged backgrounds may have had limited exposure to conversations about saving, investing and pensions, which can lead to a lack of confidence."
Experts argue that financial literacy represents the missing link in Britain's social mobility efforts. Without it, employees may never feel capable of planning, saving, or investing—limiting both their financial security and career progression.
As Ed Fox concluded: "Social mobility without financial security is like climbing a ladder that's missing a few rungs. You might get off the ground—but you won't get far."
