Nearly two thirds (64 per cent) of UK consumers approaching retirement find targeted support appealing, research from Aegon has revealed.
The research, “The Second 50: Navigating a Multi-Stage Life” report, discovered substantial demand for “targeted support” which would offer “people like you” suggestions based on limited information about the individual and their financial situation.
It found that 41 per cent of those surveyed found the concept of targeted support somewhat appealing and 23 per cent found it very appealing.
In contrast, just 13 per cent found targeted support somewhat unappealing and 8 per cent found it very unappealing.
Aegon pensions director, Steven Cameron, said: “Targeted support is the standout proposal from the Advice Guidance Boundary Review.
“Our 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 before 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.”
Aegon’s findings come as the government and the Financial Conduct Authority are consulting on future plans for regulated firms to provide “targeted support”.
“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,” Cameron added.
“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.”
The research also showed that male savers were more receptive to the idea of targeted advice, with 69 per cent of them indicating some level of favorability towards it.
Meanwhile, 60 per cent of female respondents described targeted advice as appealing.
A similar divide was discovered along age lines, with savers under 50 being more receptive to the advice than their older counterparts.
Some 71 per cent of respondents under 50 indicated they find targeted advice appealing, compared with 64 per cent of respondents aged between 50 and 59, and 56 per cent of respondents over 60.
tom.dunstan@ft.com
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