Two people earn the same salary. One feels in control of their finances, saving and planning for the future. The other constantly worries about bills and fears they’ll never be able to retire.
New research suggests the difference isn’t about pay at all – it’s about confidence and background.
That confidence gap is shaping everything from how people save to whether they believe they’ll retire comfortably.
Here, we look at what’s driving this money confidence gap, and importantly, how it can be closed.
A study by Octopus Money found that professionals from less privileged backgrounds are half as likely to believe they’ll have enough to retire comfortably. Just 35 per cent of those from lower socioeconomic backgrounds say they feel confident about retirement, compared with 67 per cent of their better-off peers.
The same pattern runs through everyday finances. Only 35 per cent of working-class professionals say their salary covers their goals and expenses, compared with 67 per cent of those from wealthier families.
When it comes to investing, the gap widens further: just 28 per cent have started investing for their future, less than half the 63 per cent of those from more affluent upbringings.
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 almost four in ten UK workers from less privileged backgrounds, the confidence gap affects millions.
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“Social mobility targets without effective financial planning are like asking people to climb without a harness,” said inclusion and culture change expert Ed Fox. “Some might make it, but more will fall than climb.”
This national picture is borne out in wider data. The Financial Conduct Authority’s Financial Lives 2024 survey found a growing group of adults “lacking financial confidence and skills”.
Meanwhile, the Money and Pensions Service reports that people in the most deprived areas score 7.7 out of 10 for money confidence, compared with 8.7 in the least deprived, and are more than three times as likely to say they couldn’t cover an unexpected bill.
Efforts to improve social mobility have long focused on education and job access.
But without financial resilience – the ability to save, invest and plan – those from working-class backgrounds remain more vulnerable to shocks and less able to move up.
Ruth Handcock OBE, CEO of Octopus Money, said: “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.”
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For Ella Rathiel, 26, an admin worker from St Neots, money was never discussed at home. “I grew up in a single-parent household, so I only saw one side of money – living on one wage. We never talked about saving. It was just about surviving,” she said.
At work, Ella took part in a financial coaching session that helped her build a rainy-day fund and review her pension. “By the end of that first session, I felt emotional,” she said. “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.”
The research suggests one-to-one financial coaching can make a real difference. Workers from less privileged backgrounds who received support 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 at the Money and Pensions Service said: “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.”
Here are five simple steps you can take towards building confidence around money:
Have a plan. Set short and long-term goals and make a plan to reach them.
Start small. Even £50 a month can build up over time. Starting is all-important.
Know your outgoings. Track spending and spot where you can save.
Talk about money. Conversations about pay, bills or saving can boost confidence and uncover useful ideas.
Financial literacy, experts argue, is the missing link in Britain’s social mobility efforts. Without it, employees may never feel able to plan, save or invest – limiting both financial security and career progression.
“Social mobility without financial security is like climbing a ladder that’s missing a few rungs,” says Fox. “You might get off the ground – but you won’t get far.”
When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.
