{"id":313536,"date":"2025-12-13T07:59:08","date_gmt":"2025-12-13T07:59:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/uk\/313536\/"},"modified":"2025-12-13T07:59:08","modified_gmt":"2025-12-13T07:59:08","slug":"millions-of-savers-to-receive-targeted-support-as-experts-hail-significant-step","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/uk\/313536\/","title":{"rendered":"Millions of savers to receive targeted support as experts hail ‘significant step’"},"content":{"rendered":"

Pension providers will be able to offer direct recommendations to savers for the first time under a major new regime set out by the Financial Conduct Authority (FCA), in a move experts have lauded as a “game-changer” for inexperienced savers.<\/p>\n

The regulator said its targeted support framework is scheduled to launch in April 2026.<\/p>\n

Firms will be able to apply from March. The dates remain dependent on parliament passing the required legislation.<\/p>\n

The scheme is intended to allow providers to suggest specific actions or products to groups of customers in defined circumstances.<\/p>\n

The FCA said the framework is designed to give people additional help with complex financial decisions.<\/p>\n

Any recommendations must comply with Consumer Duty requirements. The regulator said firms should only make suggestions if the guidance is likely to leave customers better off.<\/p>\n

The FCA estimates that at least 18million people could receive additional help with pensions and investments over the next decade.<\/p>\n

Research by the regulator flags a severe need for accessible guidance.<\/p>\n

\"Pensioner<\/p>\n

Pension providers will be able to give savers direct recommendations for the first time under a new FCA regime, a move experts call a \u201cgame\u2011changer\u201d for inexperienced savers<\/p>\n

| GETTY <\/p>\n

The FCA found that three-quarters of defined contribution pension members aged 45 and over do not have a clear plan for accessing their retirement savings.<\/p>\n

It also found that just 22 per cent of those surveyed said they understood their options when taking their pension.<\/p>\n

The FCA said around seven million adults holding \u00a310,000 or more in cash savings could be missing out on the benefits of investing.<\/p>\n

Sarah Pritchard, the FCA\u2019s deputy chief executive, said targeted support marks a substantial shift in how consumers will receive help.<\/p>\n

“Targeted support will be game-changing, it means millions of people can get extra help to make better financial decisions.”<\/p>\n

\"Mother<\/p>\n

Experts say the targeted support marks a substantial shift in how consumers will receive help<\/p>\n

| <\/p>\n

GETTY<\/p>\n

Ms Pritchard said the regulator wants to boost confidence in investing, with people in the UK invest less frequently than those in the EU or US.<\/p>\n

Industry bodies have broadly welcomed the introduction of the regime.<\/p>\n

Yvonne Braun, director of policy for long-term savings at the Association of British Insurers, said: “The FCA’s new rules mark a significant step towards closing the advice gap and will empower millions.”<\/p>\n

Current data shows only nine per cent of people take regulated financial advice.<\/p>\n

Alongside the targeted support framework, the FCA has proposed expanding the use of interactive digital pension planning tools.<\/p>\n

The proposals would allow firms greater flexibility in how they present projections within digital tools.<\/p>\n

The regulator said tools should be tailored to what customers need and understand.<\/p>\n

The FCA said these tools would help savers explore key decisions, including increasing contributions or delaying retirement, and understand how these choices affect long-term income.<\/p>\n

Damon Hopkins, head of DC workplace savings at Broadstone, said digital tools will help savers plan more effectively.<\/p>\n

He said: “It is important that pension savers are able to forecast their retirement savings journey so that they can make long-term plans for the future and get a clear picture of what their retirement living standards are likely to be.”<\/p>\n

Mr Hopkins said the new tools could show how decisions such as increasing contributions or working longer affect retirement income.<\/p>\n

\"Man<\/p>\n

Digital tools are a growing aspect of how people understand their choices<\/p>\n

| <\/p>\n

GETTY<\/p>\n

He said digital tools are becoming a growing part of how people understand their financial choices.<\/p>\n

Experts said clarity will be critical as the new regime develops.<\/p>\n

David Brooks, head of policy at Broadstone, said firms will need “absolute clarity on the advice\/guidance boundary” to avoid uncertainty.<\/p>\n

He said trustees of occupational schemes should monitor developments closely.<\/p>\n

Mr Brooks said targeted support rules are likely to affect how trustees communicate with scheme members.<\/p>\n

Research from Standard Life shows consumers are broadly positive about the targeted support concept.<\/p>\n

The research found people welcome guidance that narrows their options to those most relevant to their circumstances.<\/p>\n","protected":false},"excerpt":{"rendered":"Pension providers will be able to offer direct recommendations to savers for the first time under a major…\n","protected":false},"author":2,"featured_media":313537,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,2222,50,4178,4174,4175,3668,2331,56,54,55],"class_list":{"0":"post-313536","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-finance","10":"tag-money","11":"tag-news","12":"tag-pensions","13":"tag-personal-finance","14":"tag-personalfinance","15":"tag-savings","16":"tag-sgg","17":"tag-uk","18":"tag-united-kingdom","19":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/313536","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=313536"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/313536\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/313537"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=313536"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=313536"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=313536"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}