2025 was a challenging year for many with continued cost of living pressures, a Budget that introduced fresh tax increases, and much geopolitical tension. Despite this, new research shows that Brits feel positive about their finances going into 2026.
According to Aegon, a recent survey found that 6 in 10 people in the UK said they felt “upbeat” about their finances at the start of the year. Of those individuals, 11% felt “extremely positive” and 49% were “somewhat positive”.
There are some groups who are more confident than others. For instance, women had a net positivity score of 55%, compared to 65% for men. Generation X (aged 44 to 59) were also the least optimistic about their position.
Despite these differences, which highlight specific challenges for certain groups, a considerable percentage of people in the UK feel positive about their wealth.
Read on to learn five reasons why you may want to be optimistic, too.
1. Inflation is forecast to fall
Inflation is a measure of how quickly the prices of goods and services are rising. We have seen high levels of inflation in recent years, and you may have noticed the effects of this on your monthly expenses.
Inflation remained stubborn throughout last year, and the Office for National Statistics (ONS) reported that, in the 12 months to December 2025, it had reached 3.4%.
This is far lower than the highs of more than 10% we saw in late 2022, but still exceeds the Bank of England (BoE) target of 2%.
Fortunately, the House of Commons Library reports that inflation is expected to fall to 2.1% by the fourth quarter of 2026.
This could mean that price rises slow throughout the year, and it becomes easier to manage your household expenditure.
2. Interest rates are expected to come down further
When inflation began to rise during the pandemic, the BoE increased its base rate – the interest rate it charges to other financial institutions – to control the cost of living.
This works because as lenders put their interest rates up in line with the base rate, borrowing costs increase, meaning consumers have less disposable income. Meanwhile, it becomes more attractive to save because the interest rates on cash savings accounts are higher.
Consequently, consumers spend less and inflation starts to come down.
However, higher interest rates may have also meant you saw a significant increase in your mortgage costs or the repayments on other loans.
Luckily, as inflation came under control, the BoE started reducing the base rate last year. After reaching a peak of 5.25% in 2023, it fell to 3.75% in December 2025.
In 2026, provided inflation continues falling, interest rates could come down too. This might mean that your borrowing costs fall, resulting in you having more disposable income.
3. Stock markets are performing well
The beginning of 2026 has been positive for stock markets with the FTSE 100 and S&P 500 both reaching record highs.
Read more: What record highs for the FTSE 100 mean for your investments
Naturally, we can’t predict the future movements of stock markets. However, as markets performed well throughout 2025 despite significant geopolitical tensions and started 2026 in a strong position, many investors are hopeful about the year ahead.
According to IFA Magazine, 66% of investors are confident they will see positive returns this year. This is a notable increase from 58% in 2025.
4. The housing market is showing signs of recovery
At the end of 2025, house prices experienced a surprise drop. While this may be welcome news for those trying to get on the property ladder for the first time, a significant fall could be an issue for existing homeowners.
When the value of your home falls, you may be more limited in your options if you decide to move. In some cases, you risk having negative equity in the property – the value of the home is lower than the amount left on your mortgage.
However, the Guardian reports that the drop in late 2025 was only minor and in January 2026, the price of the average UK home rose by 0.3%.
Additionally, forecasts suggest that as mortgage interest rates come down and uncertainty after the Budget fades, 2026 will be a strong year for property value growth. Estimates suggest that house prices will rise by 2% to 4%.
5. Your financial plan could help you achieve your goals despite economic uncertainty
After a lot of negative media headlines about the economic situation in the UK and worldwide, there are several reasons to be more optimistic in 2026. However, there will likely be significant challenges to overcome.
Despite this, you can be positive because you have a clear financial plan in place. With our support, you can continue building financial stability and working towards important life ambitions, despite the wider economic outlook.
This means that you can remain upbeat about your finances, no matter what happens.
Get in touch
We are here to offer ongoing support with your finances throughout 2026.
Please give us a call on 01276 855717 or email info@braywealth.com today.
Please note
This article is for general information only and does not constitute advice. The information is aimed at individuals only.
All information is correct at the time of writing and is subject to change in the future.
The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.
Past performance is not a guide to future performance and should not be relied upon.
| YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED ON IT. |
Approved by the Openwork Partnership on 05/02/2026
Production