Millions of people are set to receive extra help with their investment and pension decisions as the FCA introduces targeted support, enabling firms to offer personalised suggestions and boost consumer confidence in managing their money.
The need for greater support is stark. According to the latest FCA data, there were around 7 million adults in the UK with £10,000 or more in cash savings who could be missing out on the benefits of investing throughout their lives. Less than 1 in 10 people obtain regulated financial advice. However, nearly 1 in 5 turn to family, friends or social media for help making decisions.
Experts are reacting to the FCA’s plans and what the new targeted support could mean for consumers below:
Chira Barua, Chief Executive of Scottish Widows, said:
“Nine out of ten UK adults don’t take regulated financial advice, so this is an important step in the process to close the advice gap and financially empower millions. Targeted Support could help firms like Scottish Widows to provide timely, tailored guidance for customers with common needs. We’re working with the FCA’s AI Live Testing service now, so we’re ready to bring technology and insight to help customers make confident, informed decisions.”
Ben Hampton, CEO of Advice at Royal London comments:
“With the FCA’s final rules on Targeted Support published, the financial services industry is on the brink of a transformative shift. Its introduction promises to reshape how millions access financial help, particularly at critical life stages such as retirement. Our own modelling shows that as many as 21.5m people across the UK could benefit from Targeted Support, underlining the scale of the opportunity to help people make better decisions and build their financial resilience.”
Tom Selby, director of public policy at AJ Bell, says: “The FCA is bang on when it says Targeted Support has the potential to revolutionise the help millions of people receive about their finances. The status quo simply isn’t working, with the gold standard of regulated advice out of reach for the majority and generic guidance failing to give people sufficient help with what can often feel like an intimidating financial landscape. Targeted Support will allow firms to help customers make better informed decisions about saving, investing and retiring. This in turn should boost engagement and understanding and give more people a fighting chance of building financial resilience both now and in the future.
“Numbers set out by the FCA today lay bare the challenge these reforms are looking to tackle, with around 7 million adults with large cash savings pots potentially missing out on the benefits of long-term investing. Fewer than 1-in-10 receive regulated advice, with over 90% essentially left to fend for themselves. Without this decisive action from the regulator, the danger is that people will turn to less reliable sources of unregulated help which all-too-often won’t have their best interests at heart.
“The FCA deserves significant credit for delivering a package of changes, in close consultation with the financial services industry, that have the potential to make a real difference to people’s financial lives. This long-term approach contrasts sharply with what we have seen from the government, which announced a complex overhaul of ISAs based on little evidence and without any formal consultation. It is telling that while Targeted Support has been widely praised by firms, those ISA changes have few, if any, supporters among the retail investing community.
“One area of major uncertainty that remains relates to rules governing marketing communications. Given any Targeted Support intervention will need to abide by the FCA’s Consumer Duty principles and aim to put people in a better financial position than prior to the intervention, it would make little sense for the application of these rules to become snared up in regulations designed to prevent people being bombarded with unwanted marketing gumpf.
“Research from The Investing and Savings Alliance (TISA) suggests as few as 25% of financial services customers opt to receive marketing communications of this nature. This points to the fact that, without an exemption, there is a risk significant numbers of people will not receive vital communications aimed at helping them make better-informed financial decisions. This cannot be the intent and we hope the government moves to close what looks like a gaping hole in the reforms.”
Jessica Reed, Financial Services and Funds Partner at leading law firm, Farrer & Co, said: “Under the new rules, firms should have more leeway to provide product suggestions to customers, without the risk they are straying into financial advice for which they would have to undertake a full assessment of the customers’ financial position.
“For example, if a firm determines that a customer is aligned with a particular consumer group, they will be able to suggest a specific investment product, or an alternative fund which would offer better value.
“Firms will also be able to tell customers that they are under-saving for retirement and suggest a better pension contribution rate. Consumers should therefore have more confidence to take decisions about their finances.”
Commenting on today’s publication of the FCA’s final rules on targeted support, Jane Wilson, Targeted Support Lead, KPMG UK, says: “This is a pivotal moment for the industry and consumers.
“If done well, targeted support can help the UK become a nation of investors, creating a healthier and wealthier society.
“Recent KPMG research around the reduction in cash ISA limits found that 87% of UK consumers would put any excess money into savings rather than into a stocks and shares ISA, even though that means paying more tax. We need a mindset shift towards investing and providing consumers with proactive, targeted financial support could be the key.
“Implementation will be technical for firms, the first step is to consider how targeted support can complement existing services. There will be many subsequent factors to consider, like customer segmentation and aligning with Consumer Duty. But this is a golden opportunity to make advice accessible and appropriate for a wider section of society. It’s now down to firms to work through the details and make it a success.”
David Brooks, Head of Policy at leading independent consultancy Broadstone, commented:
“Targeted support has the potential to close one of the most persistent gaps in the UK pensions and investment system which currently sees millions of people making long-term financial decisions with little to no guidance or financial advice. Empowering firms to give consumers clearer, more tailored nudges is a sensible and pragmatic step that should deliver better outcomes for more savers and investors.
“The targeted support announcement follows hot on the heels of a landmark package of proposals issued by the FCA earlier this week to encourage greater investment and clearly defines the regulator’s direction of travel. There is now a clear and concerted mission to extol the benefits of investment and its ability to deliver long-term financial security.
“Key to the success of this initiative will be execution. Firms will need absolute clarity on the advice/guidance boundary to support complex decision making and to ensure that targeted support does not create new risks or uncertainty. Trustees of occupational schemes would be wise to keep abreast of targeted support developments as it is likely that it will apply to the communications and support that they deliver to members.”
Commenting on the FCA’s targeted support policy statement, Chris Cummings, Chief Executive of the Investment Association, said:
“We welcome the introduction of targeted support, which has the potential to help individuals strengthen their financial resilience and pursue their long-term financial goals. Giving firms greater flexibility to support customers in a clear and accessible way will promote innovation and competition, support the government’s wider agenda for economic growth and improve financial inclusion.”
Keith Phillips, Chief Executive of The Platforms Association, said:
“The industry has long called for the freedom to present information in ways that genuinely help customers understand their investment choices. We welcome the FCA’s targeted support initiative, which will allow platforms to deliver the right information, at the right time, to support customers to make the right investment decision. The previous system was far too prescriptive, with disclosure templates that people really struggled to engage with. Improving financial education is essential to giving new investors the confidence to take that first step toward making their money work for them.”
James Carter, Head of Platform Policy, Fidelity International comments: “The publication of the final policy statement and rules for targeted support are a welcome move towards bridging the advice gap consumers face.
“These final rules provide clarity for financial services providers, enabling us to progress the delivery of targeted support and help customers to make important decisions with confidence. We welcome the regulator’s open and constructive engagement throughout this consultation process, including a number of adjustments it has made to the rules based upon industry feedback.
“Targeted support can support a range of key priorities across the savings and investment landscape, and other in-flight policies. It can help consumers make better decisions at retirement, support them to transition to become investors as well as savers and help counter the shift towards risk aversion.
“Our focus now is on implementation to help customers make important decisions. We will continue working with regulators and Government to ensure targeted support delivers meaningful benefits for consumers and aligns with other initiatives.”
Cath Sermon, Head of Public Engagement and Campaigns at Standard Life’s Centre for the Future of Retirement, comments on the FCA targeted support rules:
“We know from our own study that people really like the idea of Targeted Support being there to help whittle down their options when they make complex financial decisions, with the publication of the FCA rules today being one of the final milestones to bringing Targeted Support to life.
“It is a positive step which will help ensure that savers don’t feel overwhelmed when making decisions around their pensions. This is especially important as we found that even people with a good grasp of other financial areas in their lives, such as mortgages, often feel confused about pensions. This can lead people to feel anxious, overwhelmed, and worried about the risks of making uninformed decisions, but Targeted Support can help cut through these negative emotions.
“Now is the time for the industry to help shape a service that supports people with some of the most challenging and significant financial decisions they will ever make.”
Yvonne Braun, Director of Policy, Long-Term Savings at the ABI commented:
“Targeted support has the potential to make a real difference to people’s financial lives. At a time when only 9% of people take regulated advice, targeted support will give people help they can rely on when making complex financial decisions. The FCA’s new rules mark a significant step towards closing the advice gap and will empower millions.”
James Floyd, Managing Director at Alltrust Services, said:
“With the implementation of targeted support by the FCA underway, it marks one of the most significant regulatory developments in UK financial services in recent years. It has the potential to transform how millions of consumers receive help with pensions and investments, while creating major opportunities for forward-thinking providers.
“Targeted support sits between generic guidance and full financial advice, allowing firms to offer tailored recommendations to groups of consumers who share similar characteristics, without triggering the full regulatory demands of personalised advice. This comes at a time when the FCA’s research has highlighted a stark advice gap: only 9% of people received regulated advice in the past year; 7 million adults hold more than £10,000 in cash without any advice; 12.5 million working-age adults are under-saving for retirement; and three quarters of pension holders over 45 have no clear plan.
“For SIPPs and SSAS arrangements, the implications could be profound. Many members are financially capable but lack the time or confidence to make complex decisions. Today they receive little more than generic nudges; under the new regime, providers could recommend higher contributions, suggest decumulation pathways, or offer diversified investment strategies aligned with consumers’ needs—all without crossing into full advice.
“This would not only improve outcomes but also help firms differentiate themselves in an increasingly commoditised market. However, implementation will require significant strategic investment. The FCA has before estimated industry-wide costs of £43–£69 million, with ongoing annual costs up to £41 million. Firms will need robust technology, strong data analytics, well-trained staff, and comprehensive monitoring and compliance systems.
“While this may favour larger firms, it also creates opportunities for agile, specialist providers with innovative tech-enabled models. Targeted support could usher in a new era of consumer engagement and reshape the future of UK pensions.
“Perhaps the big question is whether targeted support can provide adequate consumer protection. I believe it can but only as part of a broader system that includes clear rules, accessible processes, universal baseline safeguards, sufficient funding, and continuous evaluation.”
Chris Jones, Financial Services Director, Dynamic Planner said:
“Following Monday’s ‘landmark package to boost UK investment culture’, today’s Targeted Support announcement is reassuringly coordinated and suggests there is more to come.
“We welcome the collaboration of the regulator with both the Financial Ombudsmen Service and the Information Commissioner’s Office, who are equally important gatekeepers and stakeholders in making this a viable initiative.
“Our consumer study in conjunction with Humans and Money, published on 10 December, shows a clear appetite and market for engaging advice, guidance and support. One in two (52%) would use targeted support if it was available, increasing to 62% of those aged 25-44.
“Our work on digital journeys gives us confidence that firms will be able to build and evidence compliant processes ready for the opening of the application gateway in March.
“We all know the challenge the advice gap presents, yet with these meaningful steps, backed by the power of technology and behavioural science, the task feels achievable and the momentum strong.” #everyclient counts
Alistair Brannan, EY UK Life, Pensions and Personal Lines Leader, comments:
“Today’s announcement sends a clear signal: firms must do more to help guide a wide range of customers with decisions around their financial futures, and the FCA is keen to support this. The recent Budget changes to ISAs, designed to encourage greater flows of money into higher-growth assets like stocks and shares, in conjunction with these finalised rules on targeted support, start to provide firms with the platform and tools upon which to act. That said, more work is required as firms consider their targeted support solutions, and how quickly they can be brought to market.
“While the investment journey is clearly a critical one, clarity on how targeted support and wider reforms to pension rules will also help firms determine how they can better support the many customers at the point of retirement – a time when decisions taken can have significant and lasting implications. Recent EY research shows nearly a third of those at or nearing retirement age have never sought financial advice, despite being open to financial recommendations. This is a large proportion of people who are not accessing guidance that could be invaluable to them.
“Regulation is just the first step. These final rules may not be mandatory, but they are designed to respond to longstanding calls from industry for greater flexibility to better support their customers. The onus is now on providers across the banking, wealth and retirement sectors to consider how to respond. For example, with consumers demonstrating growing comfort levels in sharing personal information with firms, there is a clear opportunity to leverage data and advanced analytics to group customers with similar characteristics, so firms can offer them the relevant, targeted support the FCA recommends.”
Responding to the FCA’s publication of its final rules for targeted support, Pete Maddern, Managing Director, Retirement, Canada Life commented:
“Today’s announcement is a positive step forward for consumer choice and support in retirement planning.
“We particularly welcome the FCA’s decision to allow targeted support providers to direct consumers to whole-of-market annuity intermediaries following a targeted support suggestion.
“Intermediaries offer invaluable tailored and impartial support to consumers navigating the highly individualised process of purchasing an annuity. Their expertise ensures that consumers are not left to make this important and irrevocable decision alone.
“The FCA’s revised approach will help ensure that consumers receive the support they need and foster a vibrant, competitive annuity market.”
James Heal, Director -Public Policy at St. James’s Place says:
“The rules for targeted support are an important piece in the puzzle of support to help consumers have the confidence to invest.
“The benefits of holistic advice are well recognised but giving people the confidence they need to start investing if they don’t receive advice is tough challenge that won’t be fixed by a single measure.
“Steps like the UK retail investment campaign and reforms to Risk Warnings, both of which St. James’s Place is closely involved with, are part of this picture and so is targeted support. We now also need a new regime for simplified advice to enable a new market for both the demand and supply of a focused and transactional form of advice and look forward to engaging with the FCA further on this in 2026.”
Pete Maddern, Managing Director, Retirement, Canada Life commented:
“Today’s announcement is a positive step forward for consumer choice and support in retirement planning.
“We particularly welcome the FCA’s decision to allow targeted support providers to direct consumers to whole-of-market annuity intermediaries following a targeted support suggestion.
“Intermediaries offer invaluable tailored and impartial support to consumers navigating the highly individualised process of purchasing an annuity. Their expertise ensures that consumers are not left to make this important and irrevocable decision alone.
“The FCA’s revised approach will help ensure that consumers receive the support they need and foster a vibrant, competitive annuity market.”
