Where are the best and worst investors in the UK?

Londoners have been named both the best and the worst investors in the UK, highlighting how strongly money stereotypes still shape attitudes towards personal finance.

A survey of 2,000 people conducted by Opinium for investing platform Hargreaves Lansdown in October 2025 found that 52% of respondents believe Londoners are the best at investing, far ahead of the South East on 15% and Scotland on 6%. No other region came close to matching London’s reputation for investment know-how.

Sarah Coles, head of personal finance at Hargreaves Lansdown, said the result reflects the capital’s role as a global financial centre. “London was a runaway winner for best at investing, presumably because the City is home to a major financial hub and wages tend to be higher than elsewhere,” she said.

However, this confidence in London investors contrasts sharply with other perceptions. Nearly two-thirds of respondents (63%) named Londoners as the most extravagant, and 23% said they are the worst with money, more than any other region.

Coles said this view is driven by visibility rather than reality. “Londoners have been named as the most flash with their cash. While only a small fraction can afford the luxury lifestyle on show, the capital’s supercars and high-end restaurants shape how the rest of the UK views them,” she said.

Outside London, Scotland was crowned the UK’s most frugal nation, with 33% of people naming it the most careful with money, followed by Yorkshire and Humberside at 22%. Yet frugality does not always equal wealth. Hargreaves Lansdown data shows the largest savings and investment ISA balances are actually held in the South East and East of England, not in the regions seen as most careful.

The findings reveal a UK investing landscape shaped as much by perception as reality. As Coles puts it, “Whatever we think of the rest of the country, most people know they could do better when it comes to their finances.”

Why Are the UK So Financially Unsavvy (Statistically Speaking)?

Despite there being a massive push from MPs like Lucy Rigby, stating that Britons are missing out by not investing in UK stocks, and being one of the world’s largest and most developed economies, the UK ranks among the bottom 10 least financially disciplined nations.

According to new research from brokerage and forex experts BrokerChooser. The findings paint a worrying picture of how Britons save, invest and manage their money, particularly at a time when personal financial responsibility has never mattered more.

The report comes as more than 10 million people in the UK have cut back on saving or stopped altogether, while searches for “best ways to save money” have surged by 190% in the past month. Queries for “how to invest” now average around 35,000 searches a month, highlighting a growing awareness that many people feel they are falling behind financially.

The UK’s poor showing in global rankings

BrokerChooser analysed countries based on savings rates, investment participation, household financial assets and income ratios, creating an overall Financial Discipline Score. The UK ranked 8th among the 10 least money-conscious nations, with a score of just 6.25 out of 10.

Brits save only 4.74% of their household income, and just 4.48% of their financial assets are invested in funds. This places the UK well behind more financially responsible nations such as Switzerland, Sweden and Germany, where saving and investing are far more deeply embedded in household behaviour.

What makes the UK’s ranking particularly striking is that British households are not poor by international standards. In fact, the UK has the highest level of financial assets of any country in the bottom 10, averaging $140,974 per household. Yet these assets are often left idle in cash, property, or low-yield accounts rather than being actively invested for long-term growth.

A nation rich in assets but poor in habits

This disconnect between wealth and behaviour goes a long way to explaining why the UK performs so badly. While many households own property or hold sizeable cash balances, far fewer consistently invest through pensions, ISAs or investment funds.

The result is that wealth exists, but it is not being optimised. With inflation eroding the value of cash and interest rates fluctuating, failing to invest can quietly but significantly reduce purchasing power over time.

Compounding the issue, nearly half of UK adults, around 20.3 million people, are considered financially vulnerable, meaning they would struggle to cope with even a small financial shock. Low savings rates leave households exposed, while limited investment participation restricts their ability to grow wealth and offset rising living costs.

Why don’t Brits save and invest more?

Several structural and cultural factors help explain the UK’s poor financial discipline.

First, the cost of living has risen sharply, particularly for housing, energy and childcare. Many households feel they simply do not have spare income left at the end of the month, even if their earnings appear relatively high on paper.

Second, there is a lack of financial confidence. Investing is still widely perceived as risky or complicated, and many people remain wary of markets after past crises. Without clear guidance, cash often feels like the safest option, even if it delivers poor long-term outcomes.

Third, financial education remains patchy. While pensions are widespread through auto-enrolment, broader understanding of investing, diversification and long-term planning is limited. This leaves many people disengaged from their finances beyond day-to-day banking.

How the UK compares with the most disciplined nations

The contrast with countries such as Switzerland, which tops the ranking, is stark. Swiss households save 17.48% of their income, with much higher participation in investment funds. Similarly, Sweden, Germany and Canada combine steady saving with active investing, creating far stronger financial foundations.

Even the United States, despite being criticised for low savings rates, scores higher overall than the UK due to significantly greater engagement with investment markets.

How Brits can become more financially savvy

Adam Nasli, Head Broker Analyst at BrokerChooser, says improving financial discipline does not require radical change, but consistent habits. His advice focuses on setting clear saving goals, automating contributions, understanding where money is held, diversifying investments and reviewing finances regularly.

For UK households, even modest improvements in saving rates and greater use of tax-efficient investment vehicles such as ISAs and pensions could make a meaningful difference over time.

A wake-up call for the UK

The BrokerChooser findings serve as a wake-up call. The UK is not short of wealth, but it is short of strong financial habits. Until saving and investing become routine rather than optional, Britons risk continuing to lag behind other developed nations, even as the pressure on household finances continues to grow.

In a world of economic uncertainty, being financially savvy is no longer a luxury. For the UK, it is fast becoming a necessity.