The FCA is to encourage DC pension providers to offer targeted support to improve consumer decision-making ahead of the launch of Pensions Dashboards.

Firms can now apply for permission to provide targeted support through the FCA’s new authorisation gateway, ahead of the new regime going live next month.

Only 42% of people have a clear understanding of what their retirement options are, leaving them at risk of sleepwalking into bad decisions, new research has warned.

The figure, compiled by Hargreaves Lansdown, increases slightly to 45% of the over-55s, but still points to a lack of understanding even among the older people.

The firm said the lack of understanding leaves people at risk of making decisions they can’t unwind, potentially running out of money or incurring unnecessary tax bills.

Hargreaves pointed out that the upcoming targeted support reforms will be hugely helpful in guiding people to understand what is right for them. It added that those able to access financial advice will be supported through their decisions.

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “Those who have access to a financial adviser will have valuable support navigating the processes in the run up to, and through, retirement.”

She pointed out that advisers and Financial Planners will talk clients through issues such as attitude to risk, the impact of long-term inflation on purchasing power, how to take an income and whether flexibility or certainty is more important, or a combination of both.”

She added that the targeted support reforms coming in from April will be good news for those without access to a financial adviser. “These will enable providers to really step up the support they can offer to their customers by being able to offer options based on what might work for 'people like them.' Such reforms have the potential to be a real gamechanger for people navigating the complex retirement landscape.”

• The survey of 1,500 people was conducted by Opinium on behalf of Hargreaves Lansdown in October 2025.

I suspect many Financial Planners are still in two minds about the FCA’s targeted support plans which moved a step forward this week with a provisional go-live date of April.

Reaction to the FCA’s new targeted support proposals announced today has been positive, particularly in relation to the effect it will have on people's attitude to pensions.

The FCA has predicted that over the next decade at least 18m people could be offered extra help with their investments and pensions with the introduction of targeted support.

More than half, some 52% of people, say they would use targeted support if it was available, with the number increasing to two-thirds, 62%, of 25-44 year olds.

The FCA has confirmed in a new consultation paper that applications for its new targeted support regime will open in March.

The FCA is set to open the door to widespread adviser charging for targeted support, the new type of guidance it hopes will reach millions more people.

Targeted Support should be judged on ‘whether it’s “complementing, not cannibalising”, the advice market, according to Steven Cameron, pensions director at Aegon.

The FCA’s Targeted Support proposals ‘could be detrimental to consumers’, according to The Society of Pension Professionals.

Wealth manager trade body PIMFA has called for clarity in key areas over the FCA’s Targeted Support proposals to ensure the regime delivers on its aims and avoids consumer confusion.

The FCA faces a challenge if it wants to make its Targeted Support framework work in practice, according to James Heal, director of public policy at St James’s Place.

He said it’s essential that the framework is scalable for firms and trusted by consumers.

Mr Heal said: “As it stands, rules on how firms handle additional volunteered information risk making delivery impossible in person.

“A simple playback mechanism, where customers confirm they share the common characteristics the support is built on, would solve this and allow delivery across both digital and face-to-face channels.”

He said simplified advice must also be part of the picture. “Today it sits too close to full advice to work at scale. A more distinct, proportionate regime could bridge the gap between targeted support and personalised advice, while opening up new pathways for future advisers.

“Ultimately, Targeted Support can only succeed within a wider ecosystem from financial education and guidance, through targeted support and simplified advice, to full personalised advice.”

The regulator’s consultation into its new proposals closes today and has been widely welcomed by adviser firms.

Mr Heal said Targeted Support “could be a regime that gives firms the confidence to innovate and consumers the confidence to act.”

He said The FCA’s approach shows “real progress” with clearer boundaries from personalised advice, a stronger focus on consumer testing, and the “sensible decision” to remove pension consolidation from scope.

The Targeted Support proposals have been broadly welcomed by financial advisers.

Half (48%) of financial advisers expect the more relaxed regulatory framework brought about by Targeted Support to be an opportunity to attract new clients in the next 18 months, according to a report from Nextwealth and Aegon.

The FCA published its proposals on ‘targeted support’ in June. The changes would allow firms to make financial guidance suggestions to groups of consumers with 'common characteristics'.

In its proposals the FCA said: “We are proposing a new form of support – targeted support – in pensions and investments, which would enable firms to provide suggestions designed for groups of consumers with common characteristics to help them make important decisions."

The FCA said the reforms should set the framework for the next 20-30 years, to support consumers now as well as future generations.

Without clear guidance from the FCA and the Financial Ombudsman Service firms face the risk of 'hindsight regulation', the CEO of Quilter has warned as the regulator’s consultation on Targeted Support ends.

Half (48%) of financial advisers expect the more relaxed regulatory framework brought about by Targeted Support to be an opportunity to attract new clients in the next 18 months, according to a new report.

FCA plans announced today to allow firms to offer ‘targeted support’ have been widely welcomed across the financial services sector.

The FCA has today published its proposals on ‘targeted support’ which would allow firms to make financial guidance suggestions to groups of consumers with 'common characteristics'.

FCA CEO Nikhil Rathi has told a City audience today that an announcement on a new generation of targeted support and simplified advice was "imminent."

More than two in five financial advisers (43%) say the increased pension flexibility brought about by the Pension Freedoms is confusing clients, according to a new report.

The FCA has revealed that its Consumer Duty priorities for the coming months will include looking at targeted support for pension savers.