In fact, only 9% of adults received regulated advice in the last year. At the same time, the Department for Work and Pensions (DWP) estimates that more than a third (43%) of working-age adults are not saving enough for retirement. That leaves millions trying to figure out pensions, investments and budgeting on their own.

The Financial Conduct Authority (FCA) wants to change that with its new targeted support framework.

The idea is simple: give firms more room to offer flexible, personalised guidance without worrying they’ll cross the line into regulated advice. By easing the legal grey areas that have held firms back, the FCA is encouraging new models of support that can reach more people, in more ways and at a lower cost.

This marks a new mindset, one that could mark a “once-in-a-generation” shift in how financial help is delivered to the UK’s investors.

One of the biggest challenges with financial advice is that it too often feels like “one-size-fits-all.” The FCA’s model pushes firms to do the exact opposite: tailor support to real people, based on their goals, risk tolerance and life stage.

For one client, that could mean guidance on paying down credit card debt. For another, it might be figuring out how to balance saving for retirement while raising children. The point is to make guidance both personal and practical—something clients can understand and act on immediately.

That flexibility also opens the door to people who do not meet traditional wealth thresholds for regulated advice. In other words, targeted support helps shrink the gap between those who need help and those who can actually access it.

For years, firms have been hesitant to offer “too much” help, worried that it might be mistaken for regulated advice. That caution has left many clients underserved.

The FCA’s model clears up that confusion by drawing a firmer line between guidance and advice. This gives firms the confidence to design new services within regulatory boundaries, while giving consumers earlier and more frequent opportunities to engage.

It is a win-win: firms can innovate, and clients can get support long before they’re ready for a traditional adviser relationship.

Technology is the real driver here. The FCA highlights how digital platforms, especially those powered by AI, can scale guidance quickly and cost-effectively.

Instead of waiting a year for their next financial review, clients could get real-time insights that adjust as their lives change. Imagine a planning tool that instantly adapts if someone changes jobs, buys a home or welcomes a child. That is the kind of dynamic, continuous planning that technology makes possible.

AI can also help people prioritise. It can flag risks, suggest next steps and give context to complex decisions—all in language that is easy to digest. For firms, this translates to the ability to serve far more clients without sacrificing personalisation.

One of the pillars of the framework is transparency. Clients should always know what kind of support they are receiving, and what it can and cannot do for them.

This is where storytelling and goal-based projections shine. Showing someone how small steps today could impact their long-term outcomes makes financial planning feel tangible. At the same time, it builds financial literacy by helping clients connect the dots between decisions and results.

This view is supported throughout the industry, with J.P. Morgan Personal Investing commenting that clients increasingly want guidance that’s relevant to their personal situation and timing. These ‘people like you’ scenarios can help consumers build confidence in their own decision-making, rather than simply being told what to do when it comes to their assets.

In short, better understanding leads to better choices.

The FCA is clear—vulnerability is not solely about income. It also includes people who lack financial confidence, do not know where to start or feel too intimidated to ask for help.

Targeted support is designed with these individuals in mind. Digital experiences that break concepts down into plain English and show clear next steps can make a world of difference. By lowering the barriers to entry, firms can engage people who might otherwise remain outside the advice system altogether.

The ultimate vision here is inclusiveness. Whether it is someone just starting their financial journey or a high-net-worth individual navigating complex wealth transfers, the FCA wants solutions that work for everyone.

Technology makes this possible. By adapting to a client’s income, stage of life, or level of complexity, digital-first platforms can deliver personalized guidance at scale. It’s about meeting people where they are—and staying with them as their circumstances evolve.

Mind the gap, and turn targeted support into enduring financial confidence

The FCA’s targeted support framework rises above regulatory fine print. It presents a real opportunity to rethink how financial guidance is delivered, and who can benefit from it.

For firms willing to embrace technology, put clarity first and design support around people’s actual lives, the impact could be enormous. As the cost-of-living crisis continues and expectations rise, scalable, inclusive models of financial support are no longer optional. They are essential.