As the FCA’s Targeted Support rules come into force on 6 April, almost one in two people in the UK (44 per cent) are confident they will use the support if it becomes available to them, according to new research from KPMG UK.
Targeted support is an initiative from the FCA and UK government allowing financial firms to offer tailored, ready-made investment or pension suggestions to consumers. It aims to bridge the gap between general guidance and full, paid-for financial advice, making it easier for consumers to manage their pensions and investments.
According to the research conducted by OnePoll amongst 2000 nationally representative consumers, over half (58 per cent) of UK consumers have never sought professional advice on pensions or long-term savings and almost the same number (53 per cent) would welcome being offered targeted support.
Jane Wilson, targeted support lead at KPMG UK, says: “The fact that almost one in two consumers want to receive targeted support creates a once in a generation opportunity to close the advice gap and support the UK’s ambition to create a nation of savers.
“The onus is on providers to make sure they really understand people’s goals and above all else, deliver careful, clear communication that actively encourages people to invest more at a time when concerns about financial scams are at an all-time high.”
KPMG found that of those consumers who have never sought professional financial advice, 31 per cent haven’t done so because they feel they don’t have enough money to make advice worthwhile or because financial advice would be unaffordable (26 per cent).
