A new study from St. James’s Place suggests that behavioural science could unlock 1.8 million new investors in the UK.
At first glance, that sounds like progress.
More people investing.
More capital working.
More “financial resilience.”
But pause for a moment.
Is the real problem that people aren’t investing…
or that they’re being asked to invest before they’re ready?
The Industry’s Diagnosis: A Behaviour Problem
The study points to a familiar gap:
People intend to invest… but don’t follow through.
The proposed solution?
- Make investing feel more normal
- Make it more relatable
- Make outcomes more tangible
- Reduce perceived effort
In short:
Change how people feel… and you change what they do
This is the language of behavioural science.
And to be clear — it has value.
But only when used in the right direction.
The Hidden Assumption Nobody Is Questioning
Running quietly beneath the entire narrative is a powerful assumption:
More investors = better outcomes
But is that actually true?
From a Total Wealth perspective, the answer is:
Not necessarily.
Because:
- Holding cash can be a rational choice
- Avoiding risk can be a rational choice
- Waiting can be a rational choice
Not everyone is under-invested.
Some people are simply uncertain, overwhelmed, or unconvinced — and rightly so.
Engagement or Influence?
Behavioural science sits on a spectrum.
At one end:
Helping people understand themselves and make better decisions
At the other:
Nudging people toward a predefined outcome
This is where the tension lies.
When we hear phrases like:
- “Normalising investing”
- “Making it feel like something people like you do”
- “Encouraging participation at scale”
We should be asking:
Are we supporting decisions… or shaping them?
Follow the Incentives
It’s important to stay grounded in reality.
Firms benefit when:
- More people invest
- More money flows into markets
- More assets are managed over time
So when behavioural science is used to “unlock” participation, it’s not happening in a vacuum.
There is a commercial incentive.
That doesn’t make it wrong.
But it does mean it isn’t neutral.
What the Study Gets Right
There are genuinely valuable insights here:
- Financial language often feels alienating
- Many people struggle with activation energy
- Relevance and storytelling matter deeply
- Younger generations want connection to real life, not abstract charts
These are important lessons.
The industry should absolutely improve how it communicates.
But It’s Solving the Wrong Problem
The real issue isn’t:
“Why aren’t more people investing?”
The real issue is:
“Why are people being asked to invest before they understand their life?”
Because investing is not the starting point.
It is a means.
A Different Way Forward
At the Academy of Life Planning, we take a different view.
Before asking someone to invest, we help them answer:
- What does a meaningful life look like for you?
- What are you actually trying to achieve?
- What trade-offs are you willing (and not willing) to make?
- Where does money fit into that picture?
Only then do we explore:
Whether investing is appropriate — and if so, how much, when, and why.
From Behavioural Nudges to Human Agency
Behavioural science shouldn’t be used to push people into action.
It should be used to:
- Build self-awareness
- Reduce decision anxiety
- Increase clarity and confidence
In other words:
From influence → to agency
Because:
- A nudge can change behaviour
- But only clarity creates alignment
The Real Opportunity
The study estimates:
- 1.8 million new investors
- £2.4bn of additional investment
But here’s the bigger opportunity:
Millions of people making decisions they actually understand, own, and feel confident about
That’s not just better for individuals.
It’s better for trust.
Better for outcomes.
Better for society.
The Bottom Line
Behavioural science is powerful.
But the question is not:
“How do we get more people to invest?”
It’s:
“How do we help people make better decisions about their lives — and let investing follow naturally?”
Because when you start with life…
You don’t need to nudge the outcome.
A Final Thought
If the future of financial planning is built on:
- Better messaging
- Better persuasion
- Better behavioural triggers
…then we are simply refining the same system.
But if it is built on:
- Clarity
- Understanding
- Human agency
Then we are building something entirely new.
Plan life first. Then money.
If you’re ready to explore that approach, start with the Total Wealth Plan — and experience what happens when decisions come before products.
Academy of Life Planning 