Scottish Widows Investment Pulse

July 2026

Investments surge despite mounting economic and political concern

UK investors paid more into their portfolios during the second quarter than in the first three months of 2026 despite ongoing market uncertainty.

Average portfolio contributions rose by 47%, reaching £3,554 between April and June, up from £2,413 from January to March. Just under half (48%) reported positive returns this quarter, down marginally from 50% at the start of the year. 

Investor activity shifts in second quarter 

The number of investors increasing contributions in Q2 (26%) was down slightly from the 30% recorded in Q1. At the same time, the number of people who said they invested less than usual has gone up from 19% to 23% since the last quarter.

A quarter (26%) made no or very limited changes to their portfolios in Q2, while others opted to:

• 13% – Move some investments into cash
• 12% – Sell some investments
• 12% – Invest more in individual shares
• 9% – Invest more in cryptocurrency
• 8% – Invest more in gold

Cost of living and personal finances remain the biggest factors driving decision-making, but a sharp rise in influence from geopolitical conflict shows global events are increasingly weighing on these investors’ minds:
 

Looking ahead: positive outlook for Q3

Looking ahead, more than four in 10 (44%) expect their portfolios to perform well in Q3 – continuing the positive sentiment recorded ahead of Q2. Nearly one in four (24%) will increase the amount they invest over the next three months, down from 30% in Q1 but still reflecting stable confidence levels. These investors plan to contribute an average of £3,579, with just 16% planning to reduce contributions.

The leading factors driving their decisions remain broadly consistent with Q1, with a desire to build long-term wealth (43%, vs 44% in Q1) and a feeling that it is a 'good time to invest' (28%, vs 29% in Q1) continuing to top the list. More than one in five (21%) are now driven by having more spare money than usual, while others are still making use of their ISA allowance and tax benefits (19%).

Nearly four in ten investors (39%) say the cost of living and inflation are their top concerns for the future. Political uncertainty (29%) and geopolitical conflict (28%) follow close behind, with stock market volatility (26%) and recession risk (25%) also weighing on minds. Around one in six (17%) say recent volatility hasn’t affected their behaviour at all, and 17% continued investing as normal.

UK holdings still dominate, but allocations are shifting abroad

UK-held investments remain the largest single allocation, though this has eased to 57% (down from 62% in Q1), with North America picking up ground at 21% (up from 16%). A net 31% say their UK exposure has increased over the past three months, while individual shares remain in favour too, with 28% increasing their exposure here.

In terms of investment themes, AI is the most popular choice (35%), followed by renewable and clean energy infrastructure (25%). While nearly a quarter (23%) said no themes or sectors interested them, safe-haven assets like gold (17%) and healthcare/biotech (17%) were top areas of interest.

Expert commentary

Manuel Pardavila-Gonzalez, Managing Director of Investments at Scottish Widows, said: “Investors have shown real resilience this quarter, increasing their contributions even as global conflict has escalated and the UK political landscape has shifted expectations.

There’s a clear sense that investors are remaining level-headed. Even as the cost of living continues to bite, most aren’t reacting to short-term noise or alarmist headlines – they’re staying the course rather than making knee-jerk decisions.

While we’re expecting more of the same uncertainty in the next quarter, the principles of investing remain the same and it’s important not to let short-term volatility derail long-term plans.”
 

Notes

Methodology

The research was conducted by Censuswide, among a sample of 2004 Non-advised UK investors (Excluding private / personal pensions). The data was collected between 09.03.2026 - 16.03.2026. Censuswide is a member of the Market Research Society (MRS) and the British Polling Council (BPC), and a signatory of the Global Data Quality Pledge. We adhere to the MRS Code of Conduct and ESOMAR principles.

About the Investment Pulse

The Investment Pulse is a quarterly survey conducted by Censuswide on behalf of Scottish Widows. The Pulse surveys 2,000 non-advised UK investors about their investment habits, outcomes, motivations and recent and planned activity.