The majority of Brits would like to receive “targeted support” from advice firms, new research from Aegon has shown.
According to insights from its latest report ‘The Second 50: Navigating a Multi-Stage Life’, nearly two thirds (64%) of individuals aged 50-59 would be interested in receiving targeted support suggestions from regulated firms.
The appeal was even greater among younger clients, with 71% of those under 50 finding targeted support either “somewhat appealing” or “very appealing”.
The findings come as the government and Financial Conduct Authority are consulting on future plans for firms to provide targeted support, which would offer people suggestions based on limited information about the individual and their financial situation. The proposal is intended to bridge the gap between basic information or generic guidance and holistic advice.
Aegon has outlined five principles it believes should be at the heart of targeted support. These include focusing on core consumer needs including ISAs and pensions and excluding complex or risky areas; expanding availability beyond manufacturers to include advice firms and employee benefit consultants; and offering to help customers make the best use of existing products.
In addition, it believes support should be offered proactively, rather than only when requested, and accompanied by simple disclosures to explain the service and how it compares with advice and other firms of support.
Steven Cameron, pensions director at Aegon, said its report shows that the combination of ongoing challenging economic conditions, increased life expectancy, and the need for individuals to manage their own finances has made regulated advice more crucial than ever. However, millions of people find themselves “caught between the ‘rock’ of comprehensive financial advice which can seem expensive, and the ‘hard place’ of unengaging generic information.”
Cameron said: “Targeted support is the standout proposal from the Advice Guidance Boundary Review. “Our research highlights a clear demand for more personalised financial guidance. Within this, it’s essential that our industry can offer a range of tailored support solutions that reflect the different financial situations of individuals as they approach retirement.
“We hope that the FCA and the Government will continue to prioritise closing the advice gap, with a strong focus on those in their Second 50 approaching and moving into retirement. An industry capable of genuinely supporting millions of savers and investors in enhancing their personal finances will benefit not only those individuals but the entire UK economy.”
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