L&G receives FCA approval for Targeted Support

Legal & General has received approval from the Financial Conduct Authority (FCA) to deliver Targeted Support.

The group said the move would mark a significant step in its ability to provide more relevant communications to defined contribution (DC) workplace members.

L&G confirmed the first live use case for Targeted Support will focus on members whose pension savings are fully invested in cash.

Long-term investment in cash can limit growth and erode value in real terms due to inflation, creating a clear risk to retirement outcomes. Under Targeted Support, however, L&G can highlight this risk and provide a practical suggestion empowering workplace pension scheme members to make their own decisions.

Recent testing of L&G’s Targeted Support communications relating to the cash investment use case indicated that 85% of individuals wanted to read the materials, 95% found them easy to understand, and 93% were clear on what to do next. L&G said suggests that clear and relevant communication, tailored to specific situations, can better support its members.

“After a significant period of planning and preparation, securing FCA approval for Targeted Support is an important milestone,” said CEO, retail at L&G, Laura Mason. “What sets L&G apart is how we are going to be able to embed it across the full retirement journey.

“By integrating these capabilities into our existing tools and propositions, we can move beyond simply presenting options to actively highlighting the most relevant path based on people in similar circumstances.

“This helps narrow down retirement decisions, making them easier to understand and act on, supporting members to build long-term financial confidence with greater clarity.”

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