For many people in the UK, managing money has never felt more complicated. From saving enough for the future to making decisions about pensions and investments, the financial world can feel overwhelming. Yet while the need for help has grown, access to financial advice hasn’t kept pace.
Only around 9% of adults have paid for financial advice in the last two years, and research on the FCA website shows that most people approaching retirement still don’t have a clear plan for how they’ll use their pension.
The FCA also reveals that around seven million adults in the UK have £10,000 or more in cash savings and may be missing out on the benefits of investing throughout their lives.1
This gap, between what people need and what they’re able to access, is exactly why the Financial Conduct Authority (FCA) and the government introduced a new form of financial advice called Targeted Support.
In this article we’ll cover:
What is Targeted Support?
Introduced by the FCA and the government, Targeted Support is designed to offer meaningful financial suggestions to people in common situations.
It isn’t full, one-to-one financial advice tailored to every detail of your personal life. However, it is much more actionable than the generic guidance most people receive today. And importantly, providers can offer it to customers for free.
How Targeted Support works
- You start by answering a few easy questions – for example, when you hope to retire, how long you want to invest for or how much income you’ll need.
- It’s usually a free, digital service, typically offered through your pension provider or bank.
- You’re grouped together with people in similar situations, who have common financial circumstances, needs or goals.
- The provider identifies what typically helps puts that group in a better position, based on data, expertise and regulation.
- You receive clear, tailored recommendations that are suitable for people in your group – a recommendation you can act on.
- It enables better decisions at key life moments, such as retiring, investing or moving from saving to spending.
- It bridges the gap between general guidance and full financial advice, giving more help without the cost.
- You stay in control – you decide what to do next, with no fees and no pressure.
A simple way to think about it:
Targeted Support is to financial decisions what Netflix recommendations are to entertainment. You still choose what to do, but the recommendations are informed by what has helped people like you.
Why is Targeted Support needed?
There are three main reasons.
- People aren’t getting the help they need
Across the UK, millions of people are making financial decisions alone - often with low confidence. Research on the FCA website shows people often need help with both “the figures” and “the feelings”: confidence, motivation, and understanding. - Financial advice feels out of reach
Traditional financial advice is incredibly valuable, but not everyone can afford it or feels ready for it. This leaves a huge group of people with unmet needs, especially those with simpler finances or smaller pots of savings. - Expectations have changed
Consumers increasingly expect personalised, proactive support in every part of life – from shopping to entertainment – and financial services are no exception. Targeted Support reflects this shift.
How Targeted Support can make a difference
Targeted Support is designed for people who currently receive no individualised help. Most users are expected to be people with lower or moderate levels of wealth, or with less complex decisions to make – people who typically wouldn’t seek (or pay for) full advice.
During the early FCA customer testing of Targeted Support it was found:
- Customers valued the type of help it offers
- Many people expect this level of help from pension providers today – but it simply isn’t available under current rules
The introduction of Targeted Support is, therefore, a genuine opportunity to help millions of people build financial resilience earlier in life.
What might Targeted Support look like in practice?
Imagine you’re approaching retirement and unsure whether to take cash, secure a guaranteed income (an annuity), or keep your pension invested. Today, unless you pay for advice, you’re expected to navigate that decision alone.
Under Targeted Support, a provider of pensions or other financial services, like a stocks and shares ISA, could:
- Assess your situation alongside others like you
- Highlight the options people in similar circumstances consider
- Recommend next steps that are appropriate for your type of situation
It won’t replace fully individualised advice – but it will provide much more tailored help than exists today.
What does this mean for the future of financial help?
Targeted Support will reshape how people access financial advice. It won’t compete with paid-for, individualised advice, but it will complement it.
By giving more people an entry point into financial help, it can:
- Build confidence to invest earlier in life
- Improve retirement decisions for millions
- Increase engagement with pensions and investing
- Showcase the value of advice, encouraging more people to seek full advice when they need it.
Over time, it may become a standard part of workplace pension schemes and financial wellbeing strategies offered by employers.
Looking ahead
The FCA has called Targeted Support a “once in a generation” reform. Services are expected to begin launching from 2026.
While it won’t solve every financial challenge, Targeted Support represents a meaningful step towards a more inclusive and supportive financial system – one where help is available to more people, not just those who can afford full advice.
If you’ve ever felt unsure about your financial decisions, or wished someone could put you on a sensible path without charging high fees, Targeted Support could be exactly the help you’ve been waiting for.
