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Scottish Widows Investment Pulse
Manuel Pardavila-Gonzalez
Managing Director of Investments at Scottish Widows
March 2026
Positive start to the year buoys retail investor confidence despite turbulent geopolitical environment
Three in ten (30%) UK investors generally contributed more to their portfolios than they usually do in the first quarter of 2026, with half (50%) reporting positive returns, according to new Scottish Widows research. Looking ahead, a further 30% plan to increase the amount they invest in the next three months.
Scottish Widows worked with Censuswide to analyse the views of over 2,000 non-advised UK investors for its new quarterly report - ‘Scottish Widows Investment Pulse’.
Cost of living concerns drive investment
The report highlights in the first three months of 2026, investors overall contributed an average of £2,413 to their portfolios, while 19% reduced their investments.
While a fifth (21%) said they made little or no changes to their portfolios in Q1, other investors chose to:
- Move some investments into cash (15%)
- Invest more in individual shares (14%)
- Invest more in cryptocurrency (13%)
- Invest more in gold (11%)
Personal circumstances had a greater impact on people's shift in investments, compared to economic and geopolitical influences.
|
Factors influencing investment changes in the past three months |
Influence |
No influence |
|---|---|---|
|
Factors influencing investment changes in the past three months Cost of living/ household expenses |
Influence 71% |
No influence 29% |
|
Factors influencing investment changes in the past three months Change in personal financial circumstances |
Influence 66% |
No influence 34% |
|
Factors influencing investment changes in the past three months Inflation |
Influence 63% |
No influence 37% |
|
Factors influencing investment changes in the past three months Bank of England base rate |
Influence 50% |
No influence 50% |
|
Factors influencing investment changes in the past three months UK fiscal policy/budget |
Influence 49% |
No influence 51% |
Confidence high amidst uncertain geopolitical backdrop
In Q2, bullish investors plan to invest an average of £2,920. Just 14% say they plan to reduce the amount they invest. More than four in ten (44%) expect their investments to perform well in the next quarter, rising to 54% when asked about performance expectations over the next year.
Leading factors driving investors’ decisions include a desire to build their long-term wealth (44%) and a feeling that it is a ‘good time to invest’ (29%). A quarter (24%) are being driven by UK economic conditions, while others are maximising unused ISA allowances before tax year-end (23%).
UK holdings prove popular
Investments are generally spread evenly across different holdings (20%) with a clear preference for individual shares (19%), and UK-held investments (62%).
The main approach to investing is via regular, one-off contributions (26%), with a fifth (20%) opting for a ‘set-and-forget’ automated approach. Others are adopting less structured methods, with 23% investing on an ad-hoc basis and 18% investing occasional lump sums.
Achieving longer-term goals such as growing wealth (43%) and boosting retirement savings (42%) are the main reasons people choose to invest. Other motivations include building an emergency fund (28%) or saving for a holiday (17%).
Expert commentary
Manuel Pardavila-Gonzalez, Managing Director of Investments at Scottish Widows, said: “Despite a volatile market, investors demonstrated confidence in the first quarter of 2026 - increasing their investments even with geopolitical headwinds threatening international markets and potential returns.
“While uncertainty looks set to continue, more bullish investors are driven by their own financial motivations, not just global shocks - looking to increase the amount they invest to grow their wealth, support retirement savings or mitigate the cost of living.
“Looking ahead, the next edition of the Pulse will track whether investors’ optimism materialises, or whether the events in the Middle East will prove to have a cooling impact on markets.”
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.
This edition was carried out between the 9th and 18th of March 2026.
About Scottish Widows
Founded in 1815, Scottish Widows is part of Lloyds Banking Group, the UK’s largest digital bank and financial services group. With more than £232bn assets under administration and more than 6 million customers, Scottish Widows’ award-winning product range includes workplace and individual pensions, annuities, life cover, critical illness and income protection, as well as savings and investment products.
More than 2 million customers access Scottish Widows products and services through the Lloyds Bank and Scottish Widows apps, in addition to accessing directly through independent financial advisers. The Scottish Widows Platform is trusted by more than 18,000 advisers and 5,400 advice firms, which manage the pensions and investments of almost 166,000 clients.