Royal London has reported that around 21.5 million people in the UK could benefit from the proposed Targeted Support framework, highlighting the scale of unmet need for accessible financial guidance.
The mutual’s latest research revealed that while customers who receive financial advice generally rate it as good or excellent value for money, only 9% currently pay for full regulated advice.
This leaves most people making complex financial decisions without professional support.
Royal London’s modelling suggests that Targeted Support, a new form of regulated, personalised help for groups of consumers in similar circumstances, could play a significant role in closing this gap.
The firm took part in the Financial Conduct Authority’s (FCA’s) trial of the concept, which indicated that Targeted Support helped customers feel more confident when making financial decisions.
The service is intended to provide free, actionable guidance to help people improve financial resilience, particularly around saving for the future and retirement planning.
Royal London plans to build on its existing retirement coaching services as it develops its Targeted Support offering.
Ben Hampton, CEO Advice at Royal London, said: “Everyone deserves access to meaningful financial help, and Targeted Support is a once in a generation opportunity to reshape how people access it.
“Today, consumers looking for help face a tough choice of whether to pay for advice or not. Targeted Support is the missing link to create a sliding scale of help.
“It creates a seamless, ongoing range of support so customers can access different levels of decision-making help, depending on their needs.”
He added: “Financial vulnerability is rising, financial decisions have become much more complex, and consumer expectations for personalised, proactive support are increasing.
“We are defining and shaping how Targeted Support builds our customers’ financial resilience. Being customer-owned means Royal London prioritises long-term financial sustainability over short-term shareholder returns, and can take a fundamentally different approach.
“Purely driven by the best interests of our customers, we’re ideally positioned to deliver meaningful, accessible, and impactful Targeted Support in a responsible and effective way – at scale.”
Royal London said Targeted Support is intended to offer tailored suggestions alongside educational material, providing an accessible entry point to advice at earlier stages of a customer’s financial journey and acting as a bridge to full, individualised financial advice.
Hampton continued: “Targeted Support is set to transform how people across the UK access financial help, particularly at those crucial moments in life such as preparing for retirement.
“By providing free, tailored suggestions to groups with similar needs, we are taking a significant step beyond generic guidance and giving millions a real chance to make better decisions with confidence.
“This reform will create a vital bridge to individualised advice, helping to close the advice gap and ensure that many more people have access to meaningful, actionable support than ever before.”
