As many as 21.5 million people across the UK could benefit from targeted support, says Royal London.
Currently, 9% of individuals pay for full regulated advice, leaving the vast majority navigating complex financial decisions alone.
Royal London said the introduction of targeted support represents a “promising avenue” to address this gap.
The Financial Conduct Authority’s trial, in which Royal London participated, showed targeted support helps customers feel more confident when making financial decisions.
Ben Hampton, CEO Advice at Royal London, described targeted support as a “once in a generation opportunity” to reshape how people access financial help.
“Today, consumers looking for help face a tough choice of whether to pay for advice or not. Targeted support is the missing link to create a sliding scale of help. It creates a seamless, ongoing range of support so customers can access different levels of decision-making help, depending on their needs.
“Financial vulnerability is rising, financial decisions have become much more complex, and consumer expectations for personalised, proactive support are increasing.”
Hampton said that by combining tailored suggestions with educational support, Royal London will help customers to take confident action at key life moments. Creating an accessible entry point to advice for more people earlier and acting as a bridge to individual advice from a financial adviser.
Hampton added: “Targeted support is set to transform how people across the UK access financial help, particularly at those crucial moments in life such as preparing for retirement. This reform will create a vital bridge to individualised advice, helping to close the advice gap and ensure that many more people have access to meaningful, actionable support than ever before.”
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