The Wealth Index

Forward-looking behavioural intelligence for UK wealth managers and advisers. Tracking ISA accumulation, pension decumulation, cross-wrapper capital flows, and provider competition — powered by live market data.

February 2026 — Live Data
February 2026 market intelligence summary available Download Monthly Summary
Wealth Cycle Intelligence

Household Wealth Index

Understanding where we are in the accumulation/decumulation cycle and what it means for advisory conversations and client outcomes.

49
/ 100
Accumulation
ISA Capital Inflows
51
/ 100
Decumulation
Pension Capital Outflows
Current Wealth Cycle
Credit Stress Phase
Capital Under Pressure
Executive Summary

Capital is being released from pension wrappers at a faster rate than accumulation inflows. Cash ISA preference dominates at 84.3% of wrapper choices, softening month-on-month. Capital preservation behaviour remains the primary accumulation pattern. Pension drawdown for debt paydown at 4.2% is a financial stress indicator. Users are accessing retirement capital to meet current liabilities rather than funding income or growth. 42.4% of pension users are taking the maximum 25% tax-free lump sum, releasing an estimated £47,164 per user. Significant capital is exiting pension wrappers into liquid holdings. Withdrawal strategy is split: 42.9% follow the 4% sustainable rule while 57.1% use custom rates. The market is divided between systematic drawdown and flexible income approaches.

What this cycle means

The market is in a credit stress phase. Pension drawdown for debt paydown is at 4.2% and rising (+2.4pp MoM), indicating growing financial pressure on households. Capital is exiting the wealth system to service liabilities rather than building assets. Under-35s represent 31.4% of ISA users with 15.7% choosing Stocks & Shares, a growth accumulation signal that creates opportunities for advisory engagement with younger investors.

£25,332
Mean ISA Opening Amount
210
ISA Users Sampled
£444,947
Mean Pension Pot
95
Pension Users Sampled
Cross-Wrapper Wealth Signals
Rising Credit Stress high
4.2% +2.4pp MoM
accessing pension to pay debts, and rising
Debt-driven drawdown is increasing month-over-month. At 4.2% (+2.4pp), more users are accessing retirement capital to service liabilities. This is a deteriorating signal.
Rising debt pressure on pensions signals broader household stress. ISA contributions and savings behaviour may also be under pressure from the same liabilities.
Liquid Capital Accumulation moderate
£25,332 -3.7%
mean opening deposit
Average ISA deposits of £25,332 with £479/month regular contributions suggest high liquid capital reserves. Deposit-to-contribution ratio of 52.8x indicates significant lump-sum capital.
With pension pots averaging £444,947, household wealth spans a wide range. The gap between ISA deposits (£25,332) and pension pots suggests decumulation carries more capital per user.
What to Expect in Client Conversations
Debt & Financial Pressure
Expect
Clients accessing pensions early to pay debts (4.2%, rising). Expect conversations about financial hardship, consolidation options, and whether drawdown is the right solution vs. other debt strategies.
Action
Review whether pension drawdown is truly the last resort. Explore debt management alternatives before allowing clients to erode retirement capital.
Cash ISA Concentration
Expect
Clients holding significant capital (£25,332 avg) in Cash ISAs (84.3%). With rates potentially peaking, expect questions about whether cash is still the right wrapper and when to consider S&S migration.
Action
Prepare rate comparison data and risk-adjusted return projections to help clients evaluate Cash vs. S&S positioning.
Younger Investor Engagement
Expect
Under-35s represent 31.4% of the ISA market with 15.7% in S&S. This cohort is open to investment conversations. Expect questions about risk, long-term horizons, and contribution strategies.
Action
Lead with education and long-term planning. This demographic responds to goal-based framing rather than product-led pitches.
Tax-Free Lump Sum Decisions
Expect
42.4% are taking max tax-free cash (est. £111,237/user). Expect conversations about what to do with the lump sum: reinvest, pay debts, or hold in savings.
Action
Guide clients on optimal deployment of tax-free capital. Consider ISA reinvestment, debt clearance, or phased drawdown alternatives.
Sustainable Withdrawal Rates
Expect
42.9% are modelling 4% rule withdrawals. Clients will ask whether 4% is realistic given current markets and their pot size (avg £444,947).
Action
Run personalised withdrawal scenarios. Show how different rates affect pot longevity based on actual growth assumptions and inflation adjustments.
Retirement Income Planning
Expect
With average pots of £444,947 and drawdown age around 62, clients are asking whether their savings will last. Expect conversations about income sustainability, annuity vs. drawdown trade-offs, and lifestyle adjustments.
Action
Model multiple retirement income scenarios showing how pot longevity varies by withdrawal rate, growth assumptions, and inflation. Present phased options.
Cross-Wrapper Relationship

Debt-driven drawdown at 4.2% is an elevated financial stress signal. Users accessing pension capital to pay down liabilities indicates pressure on household balance sheets. This capital exits the wealth system entirely, reducing both pension assets and potential accumulation capacity. Capital preservation dominates: 84.3% Cash ISA preference and 42.4% accessing maximum tax-free lump sums. Capital is being held or released rather than deployed into growth assets. Pension pots (£444,947 mean) are 17.6x larger than ISA opening amounts (£25,332). Decumulation carries substantially more capital per user, making pension purpose signals (debt paydown, self-investment) high-impact indicators for the broader wealth market.

Capital Flow Signals

AUM Leakage & Acquisition Intelligence

Where capital is at risk of leaving advisory scope and where new inflows can be captured.

AUM Leakage Risk
moderate
35
– 7.1% transfer intent, moderate switching risk
– 4% of pension drawdown is debt-driven, permanent capital exit
Captured Data — 95 users sampled
Mean pot size £444,947
25% tax-free entitlement (per user) £111,237
Debt-driven drawdown users (4%) 4
Debt-driven capital exit (captured) £444,948
Total captured capital at risk
£444,948
Based on 95 pension users sampled this month
Market Inference
£4,449,480,000
Estimated UK-wide capital at risk, inferred from this month's captured behavioural data applied to ~1m pension drawdown population. This is a directional inference, not an actual market total.
Acquisition Opportunity
strong
80
– 58.1% are first-time ISA users, new to the wrapper market
– 31.4% under-35 with 15.7% in S&S, growth-oriented cohort
– Mean opening deposit of £25,332 signals high-value inflows
– S&S wrapper allocation up +9.5pp, capital moving into advised products
Captured Data — 210 users sampled
Mean opening deposit £25,332
First-time ISA users (58.1%) 122
Captured new entrant capital
£3,090,445
Based on 210 ISA users sampled this month
Market Inference
£161,893,744,320
Estimated UK-wide new entrant capital, inferred from this month's captured data applied to ~11m ISA holders. This is a directional inference, not an actual market total.
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Accumulation Intelligence

ISA Market Index

Capital allocation patterns, wrapper rotation, rate sensitivity, and competitive positioning across ISA providers.

210
Users Sampled
£25,332
Mean Opening Amount
7.1%
Transfer Intent
31.4%
Under 35 Demographic
84.3%
Cash ISA
-9.5pp
15.7%
Stocks & Shares
+9.5pp
Rate Sensitivity
4.33%
Market Avg Rate
16%
Seeking ≥4.5%
3.94%
Switcher Threshold
Provider Market Share
# Provider Share MoM
1 Nationwide 15.7% —
2 Trading 212 10.5% +3.6pp
3 Vanguard 6.2% +5.0pp
4 Lloyds 5.7% —
5 Halifax 4.8% —
Key Signal
Wrapper rotation shifting toward S&S. Stocks & Shares allocation up +9.5pp to 15.7%, Cash at 84.3%.
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Decumulation Intelligence

Pension Drawdown Index

Withdrawal strategy adoption, tax-free cash uptake, pot sizing, and retirement planning signals.

95
Users Sampled
£444,947
Mean Pension Pot
62.1
Mean Planned Withdrawal Age
42.9%
4% Rule Adoption
Drawdown Purpose
Fund Retirement
86.3%
Other
7.4%
Pay Down Debts
4.2%
Self-Invest
2.1%
Stress signal: 4.2% drawing down pension to pay debts. Capital permanently exits the wealth system, reducing household net worth.
42.4%
Max 25% Tax-Free
£47,164 est.
50.5%
Under 60
Pot Distribution
Under £50k
4.2%
£50k–£100k
6.3%
£100k–£200k
11.6%
£200k–£500k
42.1%
£500k–£1M
28.4%
Over £1M
7.4%
Withdrawal Strategy
42.9%
4% Rule
57.1%
Custom Rate
1.1%
Annuity
Key Signal
Withdrawal strategies are split: 42.9% systematic (4% rule) vs 57.1% custom rates. Tax-free lump sum uptake at 42.4%, accelerating MoM. Capital release pressure remains significant. Early planning demand visible: 50.5% under 60, mean withdrawal age 62.1.
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Competitive Intelligence

Platform & Provider Intelligence

Switching behaviour, provider market share dynamics, rate sensitivity, and competitive positioning across ISA and pension platforms.

7.1%
Transfer Intent
-5.4pp MoM
84.3%
Cash ISA
-9.5pp
15.7%
S&S
+9.5pp
Wrapper Preference
4.33%
Market Avg Rate
16%
Seeking ≥4.5%
Switching & Competitive Dynamics

Transfer intent is low at 7.1%. down 5.4pp MoM. Gaining share: Trading 212 (+3.6pp), Vanguard (+5.0pp), Moneybox (+4.8pp).

ISA Provider Market Share
# Provider Share MoM
1 Nationwide 15.7% -
2 Trading 212 10.5% +3.6pp
3 Vanguard 6.2% +5.0pp
4 Lloyds 5.7% -
5 Halifax 4.8% -
6 Moneybox 4.8% +4.8pp
7 Barclays 3.8% -
8 NatWest 3.8% +3.8pp
Nationwide Trading 212 Vanguard Lloyds Halifax Moneybox
Rate Sensitivity
4.33%
Market Avg Rate
16%
Rate Sensitive
3.94%
Switcher Threshold
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Behavioural Segmentation

Saver & Retirement Personas

Data-derived personas that update monthly based on live behavioural signals. Each represents a distinct user cohort with actionable commercial characteristics.

The Retirement Income Planner
The Retirement Income Planner
86.3% of market -1.4pp
What they're doing
Planning retirement income with avg £473,537 pot. 42.7% following the 4% rule. 28.0% adjust for inflation. Exploring withdrawal strategies with various.
£473,537 avg pot · age 62 · 43% 4% rule · 5.0% growth assumption
Monthly shift
Avg pot £473,537 (down 17%) · Drawdown age 62 · 4% rule: 43% (+4.9pp) · Tax-free: 4% · Growth: 5.0% · Inflation-adj: 28%
The 4% Rule Follower
The 4% Rule Follower
37.9% of market -0.8pp
What they're doing
Following the 4% withdrawal rule with avg £444,444 pot (~£17,778/year income). Mean growth assumption: 5.0%.
£444,444 avg pot · age 62 · 100% 4% rule · 5.0% growth assumption
Monthly shift
Avg pot £444,444 (down 9%) · Drawdown age 62 · 4% rule: 100% · Tax-free: 3% (-11.5pp) · Growth: 5.0%
The High-Pot Strategist
The High-Pot Strategist
35.8% of market -10.2pp
What they're doing
Managing substantial pension pots (avg £785,441). 41.2% using 4% rule, 59% custom withdrawal.
£785,441 avg pot · age 62 · 41% 4% rule · 5.0% growth assumption
Monthly shift
Avg pot £785,441 (down 12%) · Drawdown age 62 · 4% rule: 41% (+14.5pp) · Tax-free: 3% · Growth: 5.0% · Inflation-adj: 32%
The Accelerating Cash Releaser
The Accelerating Cash Releaser
9.5% of market +1.5pp
What they're doing
Taking maximum 25% tax-free cash from avg £230,000 pot (~£57,500). 33.3% are funding retirement.
£230,000 avg pot · age 62 · 100% max tax-free · 5.0% growth assumption
Monthly shift
Avg pot £230,000 (down 40%) · Drawdown age 62 · 4% rule: 11% (-58.1pp) · Tax-free: 100% · Growth: 5.0% · Inflation-adj: 22%
The Self-Directed Drawdowner
The Self-Directed Drawdowner
2.1% of market
What they're doing
Planning self-directed drawdown with avg £435,000 pot. Mostly custom withdrawal strategies. Using various. Mean growth assumption: 5.0%.
£435,000 avg pot · age 68 · 5.0% growth assumption
Monthly shift
Avg pot £435,000 · Drawdown age 68 · Growth: 5.0% · Inflation-adj: 100%
The Affluent Pre-Retiree
The Affluent Pre-Retiree
2.1% of market
What they're doing
Pre-retirement planning with avg £710,000 pot. Making additional contributions. Income: Over £100,000.
£710,000 avg pot · age 62 · 100% 4% rule · 5.0% growth assumption
Monthly shift
Avg pot £710,000 · Drawdown age 62 · 4% rule: 100% · Growth: 5.0%
Persona profiles update monthly based on live behavioural data. Full persona reports with commercial hooks, segment deep-dives, and trend context available in institutional packs.

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Frequently Asked Questions

UK Household Wealth Intelligence

Data-driven answers to key questions about UK wealth, ISA markets, pension drawdown, and advisory intelligence.

UK household wealth encompasses the total financial assets held by individuals and families across the country, including savings, pensions, property, and investments. According to the ONS, total UK household wealth exceeds £15 trillion, with financial wealth (pensions, savings, investments) making up a significant portion.

For wealth managers and financial advisers, understanding household wealth trends is essential for client acquisition, retention, and competitive positioning. The Wealth Index tracks behavioural data across ISA accumulation and pension decumulation to provide forward-looking intelligence on how capital is flowing through the UK wealth landscape.

Based on 210 users sampled in February 2026, the Wealth Index recorded a mean opening deposit of £25,332. Across the captured sample, this represents approximately £5,319,619 in total ISA deposits for the month.

The wrapper split shows 84.3% allocated to Cash ISAs and 15.7% to Stocks & Shares ISAs, with S&S allocation rising 9.5pp month-on-month. HMRC reports that UK adults deposited approximately £80 billion into ISAs in 2023-24, underscoring the scale of the ISA market.

The UK ISA allowance for the 2025/26 tax year is £20,000 per individual. This covers Cash ISAs, Stocks & Shares ISAs, Innovative Finance ISAs, and Lifetime ISAs (with a separate £4,000 sub-limit).

From our February 2026 sample of 210 users, the mean opening deposit of £25,332 suggests savers are heavily utilising the full allowance. 58.1% of users sampled were first-time ISA holders, indicating ongoing market growth.

Approximately 22 million UK adults hold at least one ISA, with around 11 million subscribing (making new deposits) in any given tax year. Cash ISAs remain the most popular wrapper, though Stocks & Shares ISAs have seen growing adoption, particularly among younger investors.

The Wealth Index tracks ISA behavioural data monthly to identify shifts in provider preference, wrapper allocation, and new entrant trends. In February 2026, 58.1% of our sampled users were opening their first ISA, and 31.4% were under 35 years old.

Pension drawdown (also known as flexi-access drawdown) allows individuals to withdraw money from their defined contribution pension pot while keeping the remainder invested. Since the 2015 pension freedoms, drawdown has become the dominant method of accessing pension wealth in the UK.

From our February 2026 sample of 95 pension users, the mean pot size was £444,947 and the mean withdrawal age was 62.1. 42.9% of users adopted a sustainable withdrawal strategy aligned with the 4% rule, while 42.4% accessed their 25% tax-free cash entitlement.

UK pension holders can typically withdraw up to 25% of their pension pot as a tax-free lump sum from age 55 (rising to 57 from April 2028). This is known as the Pension Commencement Lump Sum (PCLS) and is capped at £268,275 for most individuals.

In February 2026, our data shows 42.4% of pension users accessed tax-free cash, representing an estimated £0 in captured capital exiting pension wrappers. When extrapolated to the UK's approximately 1 million annual drawdown entrants, this represents a significant capital flow that wealth managers should be tracking.

The Accumulation Index (currently 49/100) measures the strength of capital inflow behaviour across ISA deposits, new entrant growth, Stocks & Shares allocation, and contribution regularity. A higher score indicates stronger capital building activity.

The Decumulation Index (currently 51/100) measures the intensity of pension drawdown activity, including tax-free cash uptake, 4% rule adoption, and withdrawal age trends. Together, these indices form the Wealth Cycle — currently in the Credit Stress Phase — giving advisers a forward-looking view of where UK household capital is flowing.

Wealth managers and financial advisory firms use market intelligence reports to inform their client strategy, competitive positioning, and business development. Common use cases include:

  • Client acquisition — identifying where new ISA or pension investors are entering the market and which providers they choose
  • AUM retention — tracking transfer intent, rate sensitivity, and platform switching behaviour that signals capital flight risk
  • Competitive intelligence — understanding provider market share, pricing dynamics, and wrapper preference shifts
  • Compliance and suitability — using data-driven insights to support advice suitability reviews and CIP reviews
  • Client communications — generating evidence-backed, persona-targeted content for newsletters, client reviews, and marketing campaigns

The Wealth Index provides monthly intelligence packs, weekly pulse alerts, and prospect reports tailored to institutional subscribers.

AUM leakage refers to assets under management that are at risk of leaving an advisory firm's scope — through transfers to competitors, pension cash withdrawals, debt-driven drawdown, or rate-chasing behaviour.

The Wealth Index Leakage Score (currently 35/100, rated moderate) is a composite of transfer intent (7.1%), debt-driven pension drawdown (4%), tax-free cash uptake, and rate sensitivity signals. In February 2026, we estimated £444,948 in captured capital at risk across 95 pension users sampled.

The UK ISA provider landscape is dominated by a mix of high-street banks, building societies, and investment platforms. Based on our February 2026 behavioural data from 210 users sampled:

Provider rankings shift monthly based on rate changes, marketing campaigns, and seasonal trends. The Wealth Index tracks these competitive dynamics to help advisory firms anticipate platform migrations and switching behaviour.

In February 2026, 31.4% of ISA users sampled were under 35 years old. This cohort is increasingly important for wealth managers because younger investors tend to favour Stocks & Shares ISAs over Cash ISAs, show higher digital engagement, and represent a long-term accumulation opportunity.

Currently 15.7% of sampled ISA activity is in Stocks & Shares wrappers, and younger savers are disproportionately driving this allocation shift. Understanding the age profile of new entrants helps advisory firms build pipeline strategies for future AUM growth.

A wealth cycle describes the macro pattern of how household capital flows between accumulation (saving, investing, building wealth) and decumulation (spending, drawing down, redistributing). The Wealth Index identifies six distinct phases:

  • Accumulation Phase — ISA deposits and new entrant growth dominate; capital building outpaces drawdown
  • Decumulation Phase — Pension drawdown and tax-free cash uptake lead; capital is being released
  • Growth Rotation Phase — Capital shifts from cash to equities (S&S ISAs gaining share)
  • Credit Stress Phase — Debt-driven pension drawdown is rising; capital is exiting to service liabilities
  • Dual Activity Phase — Both accumulation and decumulation are elevated simultaneously
  • Steady State — Balanced activity with no dominant trend

As of February 2026, the UK wealth cycle is in the Credit Stress Phase: The market is in a credit stress phase. Pension drawdown for debt paydown is at 4.2% and rising (+2.4pp MoM), indicating growing financial pressure on households. Capital is exiting the wealth system to service liabilities rather than building assets. Under-35s represent 31.4% of ISA users with 15.7% choosing Stocks & Shares, a growth accumulation signal that creates opportunities for advisory engagement with younger investors.

The Wealth Index analyses behavioural data from UK ISA and pension drawdown activity. All analytics are deterministic — there are no AI-generated opinions or LLM calls involved. Every metric, score, and insight is derived from observed user behaviour.

Data is processed through quality-checked pipelines with provider canonicalisation, outlier handling, and confidence scoring. Each monthly release includes a confidence score (0–100) reflecting sample size, data completeness, and statistical reliability. In February 2026, we sampled 210 ISA users and 95 pension users.

Market inferences (estimates of UK-wide trends) are clearly labelled as directional projections based on captured behavioural data, not actual market totals.

The Wealth Index provides a suite of intelligence products designed for UK wealth management firms, platforms, and advisory practices:

  • Monthly Intelligence Pack — comprehensive 15-section report covering market overview, competitive landscape, saver personas, rate analytics, and 90-day outlook (available for ISA, Pension, and cross-wrapper Household Wealth)
  • Weekly Pulse Alert — high-level summary of key weekly movements in deposit behaviour, provider activity, and market signals
  • Monthly Client Communications — adviser-ready marketing content including persona-targeted messages, newsletter copy, social media content, and website copy
  • Prospect Packs — condensed intelligence for business development teams and platform partnerships
  • AUM Intelligence — capital flow analysis showing leakage risk and acquisition opportunity scores

All reports are generated as branded PDF documents using live behavioural data. Request institutional access to receive these reports.

WI Wealth Index
The Wealth Index is a trading name of TFE Group Ltd. © 2026. All data is captured from TFE Group Ltd proprietary media assets and reflects real user interactions. All data is anonymous and aggregated. No PII data exists at source. Generated 2026-02-25 17:45. ISA confidence: Robust (95/100). Pension confidence: Adequate (70/100).