• New rules will allow pension and investment providers to make “targeted support” recommendations to certain groups of customers.
• The rules come into effect from April 6 as a solution to the so-called “advice gap”.
• Some commentators are concerned about the risk to consumers as the government pushes to get more people investing.

2026 will be the year that “once-in-a-generation” regulatory changes transform UK retirement planning and enhance people’s ability to make long-term decisions about their pensions—or so the Financial Conduct Authority hopes.

From April 6, providers of products in the savings and retirement industries, including platform providers, brokers, and insurers, will be permitted to deliver “targeted support” to people who wouldn’t otherwise use an advisor.

It’s the latest effort from the regulator to address the “advice gap”, and has been brought about because too few people with pension savings receive regulated advice—largely because it is perceived as too expensive. It comes after years of wrangling over the legal concept of financial “guidance”, and the limited impact of UK government-backed organizations like Pension Wise and the Money and Pensions Service on consumer outcomes.

At the start of new 2026 financial year, providers will be able to make financial suggestions to groups of customers deemed to have common characteristics. They can charge for this but are discouraged from doing so. Around 19 providers are thought to be involved in the initiative, reports suggest.

“These could include people who may be currently drawing down on their pension unsustainably, not saving enough for retirement or who have excess cash sitting in a current account,” the FCA says.

The result, the watchdog says, will be a “once-in-a-generation” chance to transform retirement savings amid concerns about the nation’s household financial health and the amount of money sitting in cash.

What Changes Is the FCA Making to Pension Advice?

According to the FCA, just 9% of adults receive financial advice about their pensions and investments. Repeated surveys by the regulator have shown consumer engagement with professional financial advisors is confined to a minority. As a result, experts broadly welcome the expansion of provider input in assisting people with their options, alongside work to improve communication around “consumer composite investments” (CCI), including structured products and bond funds.

“The targeted support rules should bring the benefits of professional help and recommendations to more people and the CCI rules will refine the information that prospective investors receive about investment products,” says Andy Pettit, chief policy officer at Morningstar.

“Both will be increasingly important to people set against the government push to get more people investing and the ongoing uncertainty about the shape of future pension and investment taxation and policy changes on top of last year’s budget.”

As part of the changes, authorized firms will be allowed to offer ready-made suggestions to retail clients who may share similar characteristics, such as needing to consolidate products, adjust asset allocations, or change their risk exposure.

“Unlike traditional regulated investment advice, targeted support does not require an individualized assessment of each consumer’s personal circumstances,” law firm Freshfields says in a note.

“Recommendations are tailored to pre-defined consumer segments, making financial suggestions more affordable, scalable, and accessible to a broader population.”

Firms can apply for authorization to deliver this regime from March this year.

The change also comes amid a well-publicized government push to get people who might otherwise just hold cash to put their money into the stock markets. In the recent Autumn Budget, the chancellor, Rachel Reeves, reduced the cash ISA allowance for under-65s to just £12,000.

For some industry experts, this is joined-up thinking. For others, there is an ongoing debate about the extent to which organizations with commercial interests can be trusted to treat customers fairly.

“I think the regulator’s biggest challenge will be to balance the push of policy changes coming out of The Treasury and government with the need to maintain adequate levels of consumer protection,” says Michael Barrett, consulting director at financial services consultancy firm The Lang Cat.

“While these [ISA changes] won’t be implemented until 2027, 2026 needs to be the time when sensible and pragmatic rules are consulted on and finalized,” he says.

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