FCA proposes reforms to help millions better manage pensions and investments

Millions more people could receive meaningful support with their pensions and investments, under new proposals announced by the Financial Conduct Authority (FCA).

The FCA’s plans would allow firms to offer a new form of help called “targeted support.” This would enable them to make personalised suggestions to groups of consumers who share similar financial characteristics—such as those withdrawing from their pension too quickly, not saving enough for retirement, or holding large sums in current accounts earning little or no interest.

These proposals include built-in consumer protections and aim to stimulate economic growth by encouraging investment and innovation.

Sarah Pritchard, Deputy Chief Executive of the FCA, stated:

“We want to support people as they plan for the long term. Saving, investing, and preparing for retirement are among life’s biggest financial challenges.
These reforms will give people more confidence and clarity to take control of their finances—it’s a win-win for both consumers and firms.”

Chancellor of the Exchequer Rachel Reeves added:

“Far too many people aren’t getting the guidance they need for a stable financial future. These reforms are a key step in helping working families make better long-term financial decisions—and ultimately keep more money in their pockets as part of our Plan for Change.”

The FCA expects these reforms to lay the foundation for the next 20–30 years, benefiting both current and future generations.

As part of this initiative, the FCA also plans to reform the simplified advice framework, aiming to create a strong, trusted market that offers everything from full financial advice to simplified advice, targeted support, and general guidance.

The goal: close the UK’s “advice gap”—making sure people can access affordable, timely, and appropriate financial help when they need it most.

The gap is significant. According to the FCA’s latest Financial Lives survey, only 9% of UK adults received financial advice on pensions or investments in the past year. Among those with £10,000 or more in cash savings who didn’t invest:

• 24% said they lacked knowledge.
• 12% were overwhelmed by options.
• and 8% said they’d need more support to feel confident investing.

Roughly 7 million adults in the UK fall into this category—potentially missing out on long-term investment benefits.

To shape these proposals, the FCA took a new approach: it ran its first 6-week policy sprint, co-designing consumer journeys with financial firms, regulators, and consumer groups. The resulting consumer testing has now been published alongside the consultation.

The 8-week consultation is now open, and the FCA is working with the government to remove regulatory barriers that prevent firms from communicating more effectively with consumers.

These reforms are part of the FCA’s broader commitment to supporting economic growth, included in a package of nearly 50 initiatives outlined in a January 2025 letter to the Prime Minister.