Bridging the gap

Targeted support – simple, relevant financial guidance – can help to shift things in a more positive direction. For too long, many in the industry have assumed that people will find their own way to financial advice. The reality is more complex.

Many consumers feel overwhelmed, uncertain, and often deeply anxious about their financial future.

Common financial worries

New findings from The Financial Conduct Authority’s (FCA) Financial Lives survey found nearly 12 million people feel overwhelmed or stressed dealing with financial matters, including 40% of adults with credit or loans saying they suffer with anxiety or stress because of this debt burden.

Plus, around 3.8 million retirees are worried they don’t have enough money to last their retirement. 

This is not a fringe issue. This and other research points to the fact that many people are struggling. Financial advisers and planners, and providers, have a responsibility to act. 

Targeted support could be the bridge that helps people access financial assistance when they need it most in a way that’s affordable and convenient.

A vital first step

Financial advice is often perceived as being only for the wealthy. Many people simply do not see it as something for them, or they do not trust it. Targeted support can begin to challenge those assumptions. It can introduce people who have never even considered financial advice to services that feel relevant, understandable, and within reach.

Imagine a couple who are just beginning to think about retirement saving. If they receive targeted support that helps them make sense of their situation and take some initial steps, they are far more likely to feel confident. Later on, if they receive an inheritance or face a financial decision, that early experience of helpful support can make them more open to seeking professional advice.

Encouraging action

It cannot be assumed that people will automatically engage with targeted support. A well-designed service, consistent nudges, clear communication, and a strategy that actively encourages people to take that first step, is needed from the industry.

Another challenge is confusion. Research by The FCA found that 41% of people could not correctly distinguish between targeted support - general guidance for people in similar situations, and regulated advice - personalised and delivered by a qualified professional. This must be addressed. People need to know exactly what they are receiving. If someone believes they received personalised advice and later realises it was only general guidance, trust will be lost.

There is also a growing issue of trust more generally. Financial scams are more sophisticated than ever. Many people are suspicious of any unexpected message about their finances. Even a genuine offer of support might be ignored or deleted if it does not feel safe and trustworthy.

A long-term project

As a first step, targeted support can reduce anxiety, improve financial confidence, and build trust. These are all essential building blocks in helping someone feel ready to engage with professional advice in the future.

This is not a quick fix. But it is a genuine chance for the adviser industry to connect with people in a more meaningful way. This targeted support can help more people feel informed, reassured, and in control of their financial decisions.