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There was no major fanfare, nor did it garner a huge amount of financial media attention. But ‘targeted support’ was launched earlier this year, a long-term initiative that, it is hoped, will make a difference to financial services customers up and down the UK.
So, what is targeted support, how does it work, and what differences will consumers see because of its introduction?
In an exclusive interview, Kate Blatchford-Hick, Head of Department for Consumer Investments at the City watchdog, the Financial Conduct Authority (FCA), shared her thoughts with me on the subject.
What’s on this page?
Andrew Michael (AM): Kate, thanks very much for taking the time to talk to Saga Money. Let’s set the scene for readers. At the end of 2025, the FCA said targeted support would provide extra help to millions of people with their pensions and investments and described the move as “game changing”.
This sounds laudable. But before we go into the details, what evidence is there that people need help with their pensions and investments?
And who are we talking about here? People at the start of their financial planning journey, or Saga readers who fall into the over-50s bracket?
Kate Blatchford-Hick (KBH): While pensions and investing have become more accessible, many people still find it difficult to make important financial decisions with confidence.
We estimate that around 23 million people are not getting the help they need with pensions and investments. It's particularly relevant for people in their 50s and beyond, who are approaching retirement and facing important choices about how to use their pension savings.
Around three-quarters of people over 45 do not have a clear plan for how they will access their pension in retirement. We know that seven million people have £10,000 or more that could potentially be invested in a regular savings account and have not had financial advice.
Fewer than one in ten people receive regulated financial advice each year. For many, advice can feel expensive and out of reach, while generic guidance often isn't tailored enough to be truly useful.
Targeted support is designed to bridge that gap, helping millions more people make better-informed decisions about their pensions and investments with greater confidence.
AM: Turning to targeted support, please describe what it is in layman’s terms and how it will work. For example, is it a set of rules, or an enforceable law? Is this a natural extension of the Consumer Duty rules which came in a few years back?
KBH: Put simply, targeted support is a new way for financial firms to help people make decisions about pensions, savings and investments without the cost or complexity of full financial advice.
Rather than looking at every detail of an individual's finances, firms can use information they already hold to identify groups of customers with similar circumstances and suggest options that may work for them.
For example, if you’re approaching retirement but haven’t planned for accessing your pension, a firm could prompt you to consider the options that may be most suitable for people in a similar position.
Firms need FCA permission to provide targeted support and will have to follow strict rules designed to ensure customers understand what is being suggested and any risks involved.
It also builds on the Consumer Duty, which requires firms to put customers' needs first and support them in making informed decisions.
AM: What is the FCA’s role in targeted support? You’re the UK’s main financial regulator, but isn’t part of the thinking here for you to help fulfil the government’s wishes of turning Brits into being more of a nation of investors?
KBH: Millions of people need more help than a website, factsheet or generic guidance can provide, but may not want, need, or be able to pay, for full financial advice.
That's why we've worked with the government on targeted support. The aim isn't to push people into investing or replace financial advice. It's to help people make informed decisions.
Firms offering targeted support will need to follow our rules, explain why a particular option is being suggested and be clear about the risks involved.
We support efforts to help people make better use of their money where appropriate, including investing for the longer term. But targeted support is ultimately about giving people more help and more confidence when making important decisions about their financial lives.
AM: Why should that fall to the City watchdog when investing is risky and holds no guarantees? Isn’t there a danger people could end up out of pocket having acted on targeted support and be less trusting of the system, the exact opposite of targeted support’s intentions?
KBH: Investing isn't right for everyone, and it does involve risk. However, keeping your money in cash can also have drawbacks. Investing gives your money the chance to grow over time, while cash savings may grow more slowly. Investing can offer longer-term growth opportunities which can be beneficial in planning for retirement and accounting for rising living costs.
The purpose of targeted support isn't to encourage people to take inappropriate risks. It's to help them make informed decisions. Firms will have to follow FCA rules and only provide support where it is likely to be relevant for the group of customers concerned.
Targeted support isn't just about investing. It could help people decide how much to contribute to their pension, how to access their pension savings in retirement, or whether they're paying more than they need to for an investment product.
Our role is to make sure people receive clear information about the options available to them, including the risks involved so they can assess what’s right for them.
AM: Has targeted support already begun? Or is there a particular start date? There hasn’t been much of a fanfare, so how would Saga readers know and recognise the change?
KBH: Targeted support went live on 6 April, since then we have given seven firms permission to provide targeted support. We expect this number to grow in the coming months and years.
For Saga readers, the change may be quite subtle. They’re most likely to encounter targeted support through financial firms they already have a relationship with, such as their bank, pension provider or investment platform.
It could also appear through an app, online account, email, letter or during a conversation with a provider. The key difference is that the communication will be more relevant to their circumstances than generic guidance.
AM: How does targeted support overlap with the ‘Invest for the Future’ campaign featuring ‘Savvy the squirrel’ that got underway this spring?
KBH: They are complementary but do different things. Invest for the Future is about raising awareness and helping people understand when investing might be worth considering. Its message is that investing isn't just for experts or the very wealthy.
Targeted support is what can happen next. If someone decides they want to explore their options, their bank, pension provider or investment platform may be able to provide more relevant support based on what they know about similar customers.
In other words, the campaign helps people engage with the idea of investing, while targeted support can help them make informed decisions when they're ready to take action.
AM: Are all financial services companies being asked to get behind targeted support? If not, which businesses are in the front rank? Banks, insurance companies, who exactly? Is there a list the public can access, or a logo to look out for?
KBH: We’ve not made it a requirement for firms to offer targeted support, but we're seeing interest from a range of providers, including banks, pension providers and investment platforms.
Some firms have already received FCA permission to offer targeted support, including Aviva, Legal & General, Vanguard and Monzo. There isn't a separate logo for targeted support. Instead, firms must be clear when they are providing this type of service and explain what it does and doesn't cover.
If you want to know what firms are registered to provide targeted support, you can also check the FCA Register. Over time, more firms are likely to provide targeted support.
AM: Are there particular guidelines/direct marketing rules for the sorts of messages that businesses can convey?
KBH: Absolutely. Firms can't simply use targeted support as a marketing tool. They must follow our rules requiring communications to be clear, fair and not misleading, explain why a suggestion is relevant, and be upfront about any risks.
People should also be able to opt out if they don’t want this service, and firms must follow data protection and marketing rules. The goal is to help people make informed decisions, not to pressure them into buying a product.
AM: Are special considerations being given over to vulnerable customers? What are these?
KBH: Yes. Firms must think about customers who may be in vulnerable circumstances when they design and offer targeted support. They'll need to consider and make sure the support they’re giving is appropriate to their customers’ circumstance.
Some people may have more complex needs, and targeted support may not be right for them. In those cases, firms should not simply leave them without help. They should point them towards other support, such as MoneyHelper.
AM: If a consumer follows the recommendations contained in a targeted support message, what redress would there be if the guidance turned out to be financially damaging?
KBH: You as a consumer don't lose your rights when you receive targeted support. If you’re unhappy with the support received, you can complain to the firm in the normal way.
If you weren’t satisfied with the firm's response, you may be able to take the complaint to the Financial Ombudsman Service, which provides a free and independent way of resolving disputes between consumers and financial firms.
As with other financial products and services, the Ombudsman will look at the individual circumstances of the case and decide whether the firm acted appropriately.
AM: How will we, the public, know if targeted support is working? What sort of outcomes monitoring will there be?
KBH: We'll be monitoring the impact of targeted support and have committed to reviewing how it's working within two years of the service becoming available.
The key test will be whether people get the help they need to make informed financial decisions, particularly those who are not currently receiving any financial advice.
We'll also look closely at consumer outcomes, how firms are offering the service, and whether the safeguards are working as intended. If changes are needed, we'll take action.
Ultimately, success will be measured by whether more people are able to make confident, informed financial decisions, while continuing to receive appropriate protections.
AM: How do you see targeted support working with the existing financial adviser community? If targeted support is the success it’s anticipated to be, won’t people be inclined to stop taking advice from qualified professional financial services practitioners?
KBH: We don't see targeted support as a substitute for financial advice. Full financial advice will remain the right option for people with more complex circumstances, or those who want a personalised recommendation based on all aspects of their finances.
Targeted support is designed to help people who currently receive little or no support at all. It gives them more help than generic guidance, but it doesn't replace the value of advice from a qualified adviser.
We see the two services working alongside each other. In some cases, targeted support may help people recognise when they would benefit from taking professional financial advice.
More broadly, we're also looking at ways to make financial advice more accessible, including supporting the development of simpler forms of advice where these can deliver good outcomes for consumers.
AM: We live in a fast-moving technology age. What’s the danger in the future that people bypass an initiative such as targeted support and simply turn to AI to plug any gaps in their financial knowledge instead of relying either on companies or the financial advice community?
KBH: AI is already changing the way people access information about money, pensions and investing, and it can be a useful tool for understanding complex topics.
But people should be cautious about relying on general AI tools when making important financial decisions. AI can provide inaccurate, incomplete or out-of-date information, and it doesn't take account of an individual's full circumstances.
That's a key difference between AI and regulated financial services. When people receive targeted support from an FCA-authorised firm, there are rules, standards and protections in place. Firms are accountable for the support they provide, and consumers have access to routes of redress if things go wrong.
We don't see this as a choice between AI and regulated support. Many people will use AI to learn about a topic, but when it comes to making decisions about their pensions, savings or investments, it's important they understand the value of support that comes with regulatory oversight and consumer protections.
Ultimately, people should be clear about what they're using: AI can be a useful source of information, but it is not a substitute for regulated financial support or advice.
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