Nearly two thirds (64 per cent) of individuals aged 50-59 would be interested in receiving targeted support suggestions from regulated firms, according to research by Aegon.

The appeal of targeted support was even “stronger” among those under 50, with 71 per cent finding targeted support either ‘somewhat appealing’ or ‘very appealing’.

The research also revealed that male respondents were more supportive of targeted support, with 69 per cent finding the idea 'somewhat appealing' or 'very appealing’, compared to 60 per cent of female respondents.

These findings come as the government and the Financial Conduct Authority (FCA) consult on future plans for regulated firms to provide 'targeted support', which would offer ‘people like you’ suggestions based on limited information about the individual and their financial situation.  

In addition to this, targeted support is a key proposal of the advice guidance boundary review, under which the FCA and HM Treasury hope to bridge the gap between basic information or generic guidance and holistic advice.

Earlier this year, Aegon proposed to the regulators and government five “core principles” it believed were essential for the success of targeted support.

These included: a focus on “core consumer needs” such as individual savings accounts (ISAs), pensions, and protection, to the exclusion of complex or risky areas; availability of advice from adviser firms and benefit consultants, not only manufacturers; help for customers make the best use of existing products, as well as suggesting possible new purchases.

It also included proactive and not reactive provision of advice and simple disclosures to explain the service and help compared with advice and other forms of support. 

Commenting on the research, Aegon pensions director, Steven Cameron, said: “Targeted support is the standout proposal from the advice guidance boundary review.

“Our latest Second 50 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 and must be encouraged to thrive.

“However, millions find themselves caught between the ‘rock’ of comprehensive financial advice which can seem expensive, and the ‘hard place’ of unengaging generic information.”

Cameron explained that Aegon’s research highlighted a “clear demand” for more personalised financial guidance, with 64 per cent of individuals citing they would find the concept of targeted support appealing.

“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,” he argued.

“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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