Doug Brown, CEO of Insurance, Wealth & Retirement (IWR) at Aviva, said: "We welcome the introduction of targeted support rules, as they hold the potential to transform how we support consumers with their pensions and investments. Additionally, these rules could stimulate UK growth by enhancing consumer access to financial products, encouraging innovation, and reducing regulatory barriers for firms. Aviva and Age UK research published this year found less than half (48%) of mid-retirees aged 65-75 who do not pay for financial advice are confident they are on track to make their pension savings last for life, and almost two thirds (65%) do not believe there is enough support for people managing their financial needs as they age. Professional independent financial advice has a vital role to play in helping consumers make good financial decisions, but most don’t get that advice. The introduction of targeted support and simplified advice could help bridge that gap, making advice more accessible and affordable. It’s great to see the Financial Conduct Authority (FCA) and HMT working together with the Financial Ombudsman Service (FOS) to deliver these important reforms and we look forward to supporting them.”
Stephen Lowe, group communications director at Just Group: “Targeted support has the potential to be a game changer, a once in a decade opportunity to transform the help people receive and clearly need. The proposals could mark the breakthrough required to reverse the current situation whereby many more people are going it alone than are seeking advice or guidance. But Pension Wise deployment also needs to change. It’s a brilliant service that’s wasted by being signposted much too late in savers’ lives. There remains a big opportunity to bring people to Pension Wise as the initial step, with contact with targeted support or advice coming later.”
Catherine Foot, Director at the Standard Life Centre for the Future of Retirement: “With the consultation published today, targeted support has moved another step closer to becoming a reality. We’ve spent the last few months in discussion with people approaching retirement to gauge if and how the concept of targeted support appeals to them, and to understand the customer needs it could address. A recurring theme of the conversations is the need to address the anxiety and the feeling of being overwhelmed many have when it comes accessing their pensions. With regulator aiming to have the final policy statement published in December, 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. Our report outlining consumer expectations of targeted support will be published in the coming weeks, with important insights for the industry to use as they build targeted support services.”
Chira Barua, CEO of Scottish Widows and CEO of Insurance, Pensions & Investments at Lloyds Banking Group, said: “More than 90% of consumers in the UK today cannot access regulated advice and get the help they need to make informed decisions about their futures. As the UK's biggest digital bank and the only integrated bank and insurer, Lloyds is passionate about helping our 28m customers bridge the advice gap. The FCA’s work to refine the advice rules is a material stepping stone in building a more inclusive financial landscape in the UK.”
Yvonne Braun, ABI Director of Long-Term Savings Policy, said: “We know facing complex financial decisions can feel overwhelming, especially in retirement, which is why we’ve long championed targeted support. The FCA’s decision to press ahead with this crucial proposal is very welcome and should be a relief to millions of savers. We expect targeted support to be free and widely available. To ensure its success, it should be backed by a clear process for fair compensation if things go wrong. Giving firms the freedom and flexibility to roll out targeted support across a range of products and scenarios will make sure everyone can benefit. We also welcome the drive for simplified advice. While no single solution will entirely close the advice gap, this package is a major leap forward.”
FCA proposals for millions to navigate their financial lives
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