Zarah ChoudharyThe majority of respondents to Aegon’s ‘The Second 50: Navigating a Multi-Stage Life’ report said they would like to see more targeted retirement and pension support from regulated firms.
This included 64% of respondents aged between 50 and 59, rising to 71% of participants under 50.
These findings come as the Government and Financial Conduct Authority (FCA) consult on 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.
Male respondents were slightly more supportive, with 69% finding the idea ‘somewhat appealing’ or ‘very appealing’, compared with 60% of female respondents.
Targeted support is a key proposal of the Advice Guidance Boundary Review, under which the FCA and HM Treasury aims to bridge the gap between basic information or generic guidance and holistic advice.
Earlier this year, Aegon proposed to the Government and the regulators five core principles it considers essential for the success of targeted support.
They were: focusing on core consumer needs, and excluding complex or risky areas; expanding availability beyond manufacturers to include adviser firms and employee benefit consultants; helping customers make the best use of existing products; offering proactively, rather than only when requested by consumers; simple disclosures to explain the service and how it compares with advice and other forms of support.
Steven Cameron, pensions director at Aegon, 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.
“Our research highlights a clear demand for more personalised financial guidance, with 64% 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.
“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.”
In addition to these insights, Aegon also launched a Second 50 Continuing Professional Development (CPD) program.
