At least 18 million people could receive extra help with investments and pensions over the next decade, following the introduction of a targeted support framework by the Financial Conduct Authority (FCA).
The new service will allow firms to make specific suggestions to consumers, so they can make better informed decisions about what to do with their money.
According to the latest FCA data, there were around seven 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. Fewer than one in 10 people obtain regulated financial advice, but around one in five turn to family, friends or social media for help making financial decisions.
“Targeted support will be game changing,” said Sarah Pritchard, deputy chief executive of the FCA. “It means millions of people can get extra help to make better financial decisions.”
“We also hope it will build greater confidence to invest. While investing will not be right for everyone, we know people in the UK invest less compared to the EU or US. People in the UK could be missing out on the potential benefits of investing in the medium to long term.”
The targeted support framework will be underpinned by the FCA’s Consumer Duty to enable firms to innovate and better support their customers. Consumers will receive recommendations, but they will not be based on a full, in-depth individual assessment. Firms will need to make sure the recommendations are suitable and should only be offered when it puts consumers in a better position.
Earlier this week, the FCA finalised changes to the way firms disclose information to consumers through new rules for retail disclosures (CCIs) to further support people making better informed decisions.
The FCA is also consulting on ways to further modernise pension rules, including projections and non-advised defined contribution transfers to strengthen consumer protection as part of wider government and regulatory reforms.
The gateway for applications is expected to open in March 2026, before the new rules come into effect, and after new legislation has been passed by the government. The FCA has opened a pre-application support service to help firms prepare for the gateway opening.
“Firms which come to the gateway demonstrably ready, willing and organised to undertake targeted support will be authorised swiftly after the provisional go-live date in April 2026,” the FCA said.
The regulator said it will also publish joint statements with the Financial Ombudsmen Service and the Information Commissioner’s Office to support by clarifying the approach to consumer complaints and redress, and how to consider existing direct marketing rules such as Privacy and Electronic Communications Regulations (PECR).
Richard Flint, CEO of Hargreaves Lansdown, said the announcement is “an exciting milestone.” He added:
“Hargreaves Lansdown has long called for this change to enable us to build better outcomes for our clients. For too long we haven’t been able to help clients in the way they would like – from helping people right size their cash savings, nudging them when it’s the right time to start investing, to helping people marshal their retirement options. Targeted support will allow us to provide more relevant guidance which will build confidence as people make their financial choices. We can’t wait to get going.”
Nathan Long is head of targeted support at Hargreaves Lansdown. He said the measure would be game-changing.
“We are excited about the possibilities targeted support will bring to improve our information to clients, making it more relevant so that clients know how best to position for their financial future. This is a game changer to ensure people make the most of investment opportunities, improving understanding of when investment is right for people in a similar position.”
Financial services provider L&G said it “strongly welcomes” the introduction of targeted supported, with CEO Paula Llewellyn calling it “a pivotal step in helping people make more confident long-term decisions.”
She added:
“For years, we’ve championed reforms that allow providers to move beyond generic guidance and today’s announcement gives the clarity the industry needs to progress this new era of support.
“Our own experience shows the power of innovative member engagement. Members using our Guided Retirement Planner are now 50% less likely to face a projected shortfall after adjusting their plans. This clear evidence of the benefits of tailored guidance underpins why targeted support will be so impactful as firms will now be able to take this to the next step and offer ready-made suggestions.
“Targeted support will play a vital role in improving retirement outcomes by inspiring better informed, long term financial decisions.”
Jon Greer, head of retirement policy at wealth management company Quilter, said the FCA’s proposals are a welcome step towards making pensions clear and safer – but warned they come with trade-offs. He explained:
“The plan to modernise online planning tools should help people see, in plain language, how paying in more, retiring a little later, or choosing a different way to take income could change life after work. That is positive, but it only works if providers keep assumptions realistic, show figures in today’s money, and make it clear that projections are estimates rather than promises.
“The second change proposed could cause non advised transfer times to slow significantly. Before you move or combine pensions, you would receive a simple side‑by‑side comparison between the new and old scheme of the things that count. That means fees and charges, the investment approach, the options you will have at retirement, and any valuable benefits you might lose by switching. This extra pause can prevent costly mistakes, especially as dashboards help more people find old pots.
“Consumers need to understand the trade‑off. The new process will add time to transfers, significantly so in some cases. Your current provider may take up to 10 working days to send information to the firm you are thinking of moving to. That firm then has three working days to replay the comparison to you, and only after that can you instruct a transfer. In practice, legacy systems and extra checks can stretch timelines further. If implemented someone planning to consolidate or access money soon, should allow several additional weeks and do not assume a quick, one‑click transfer.
“There is a pragmatic carve‑out for very small, inactive pots at £1,000 or less. That keeps administration lighter, but firms should still flag if several small pots together could be worth keeping. There is also the ability for customer to opt out of the process entirely. We note that the FCA believe opt-outs will be the minority exception and will conduct consumer testing to test this.
“If implemented well, these changes mean clearer tools and fewer nasty surprises. But it also means quite a significant overhaul in processes which is likely to have broad knock-on impacts on the swiftness of transfers in the future as providers will have to prioritise the provision of information perhaps in advance of completing actual transfers. In the meantime, anyone considering consolidation should check charges, look for guarantees and retirement options, and consider impartial guidance from MoneyHelper, or regulated advice for more complex decisions.”
