As the end of the tax year draws closer, new research from the UK’s second largest investment platform for private investors reveals that more than half (57%) of adults in London feel stressed about their finances.

A survey of Londoners,* which forms part of interactive investor’s new campaign, ‘Tax Year Zen’, found that additional stress arises when it comes to planning for the longer term, with more than half of Londoners feeling particularly stressed (53%) when thinking about investing for their future.

When asked what they found the most stressful, more Londoners said looking at their finances (21%), than being stuck in traffic (17%) or using public transport like the tube (8%) – despite living in the fifth most congested city in the world.[1]

Hesitation to start or continue to invest is prevalent in London, with three quarters (75%) of Londoners finding the thought of investing too stressful to make a start.

Outlining the campaign, Camilla Esmund, Senior Manager at interactive investor, says: “Let’s be honest: London life is stressful enough, even before you factor in financial planning and managing investments, particularly with ISA season upon us and the looming deadline of tax year end. And although some may find the frequent deadline reminders a useful incentive, we’re conscious that this can also bombard others.

“Every investor is different, and we need to make sure that some aren’t left on the sidelines. At interactive investor, we are committed to making investing simpler and more accessible for everyone. We want investors to understand the ‘how’ and ‘why’ behind smart financial moves – and helping them find some zen this Tax Year End. This campaign helps us understand the scale of the problem but also speaks directly to those who are less confident with their investments, and what to do ahead of tax-year end.”

ii’s Tax Year Zen campaign aims to better understand the negative emotions and associations that people have when it comes to managing their investments, and also to empower savers – providing them with the knowledge and tools to make their money go further through tax efficiency, without the added stress. This includes a range of jargon-busting educational content on the website and on social media, and pointing investors towards the wealth of tools and guidance interactive investor has to offer. Last year, the platform also launched its ii Managed ISA, for less confident investors.

The current tax year ends on the 5 April 2025 and marks the deadline for certain activities, such as making contributions to tax-advantaged accounts – like ISAs or pensions – to ensure that they qualify for tax benefits in that year.

A clear engagement gap

The research into Londoner’s attitudes towards saving and investing formed part of a larger study of UK adults.

It found that, when it comes to investing money for the future, there is a substantial gender gap in how this stress is felt, with six in ten (60%) women feeling overwhelmed, compared to just over four in ten (44%) men.

The research also found that over a third (36%) of UK adults don’t believe they have enough disposable income to save or invest for the future and a similar amount (33%) say the cost-of-living crisis is still impacting their ability to invest.

However, we also know that a large amount of stress comes from a lack of guidance and education around investing – with around one in five (21%) stating that they simply didn’t know where to start with investing.

Within ii’s research, only around one quarter (28%) were aware that tax year end is a deadline to make the most of tax-free allowances for the current tax year, with 17% saying they have no idea what the term means, and a further 13% believing it only applies to wealthy people.

Commenting on the data, Camilla Esmund said: “The run-up to tax year end is a crucial time for savers and investors because many tax allowances operate on a ‘use it or lose it’ basis, meaning that failing to use the allowances before the deadline means missing out on valuable tax reliefs.

As tax year end approaches, there are opportunities to make your money work even harder for you through tax efficient planning – and there are ways to seek help to make the process less stressful.”