Nearly half (44 per cent) of UK consumers are confident they will use the Financial Conduct Authority’s (FCA) targeted support regime, which came into force yesterday (6 April), research from KPMG UK has shown.

The analysis revealed that more than half (58 per cent) of adults had never sought professional advice on pensions or long-term savings, while 53 per cent said they would welcome being offered targeted support.

Targeted support aims to bridge the gap between advice and guidance, allowing firms to offer tailored recommendations to groups of consumers with similar characteristics.

“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,” said KPMG UK targeted support lead, Jane Wilson.

“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.

“Trust is fragile so if people feel sceptical, confused or overwhelmed when they first access financial support, the opportunity will be lost.”

KPMG’s research found that, of the consumers who had never sought professional advice, 31 per cent said it was because they felt they did not have enough money to make advice worthwhile.

More than a quarter (26 per cent) of this cohort felt that financial advice would be unaffordable.

Younger people were the most open to using targeted support, with 58 per cent of 25-34 year olds and 56 per cent of 35-44 year olds saying they were likely to use it.

Those aged over 65 were the least inclined to access targeted support (22 per cent), which KMPG said was likely driven by the fact they have already made their pension decisions.

“The notion that financial advice is only needed if you have notable wealth is simply not true; people with modest finances perhaps need support more than anyone else,” Wilson stated.

“Retirement no longer means handing in your lanyard and putting on your slippers; people work part-time, take on new challenges, or dip in and out of work to suit their changing lifestyles or meet their financial needs.

“The strong appetite for targeted support amongst the young shows there’s a chance to move people beyond saving and give them the confidence to invest for the long term.

“Done well, this can help individuals grow their wealth in line with their ambitions, while also channelling capital into the parts of the economy that drive sustainable growth.”

This article originally appeared in our sister publication Wealth Investment News.

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