LONDON, May 1, 2026, 16:02 BST
Legal & General Group Plc just got the green light from the Financial Conduct Authority to offer targeted support, a move that lets the FTSE 100 insurer and asset manager provide more tailored guidance to workplace pension savers.
Initial rollout targets members with pension savings entirely in cash—a segment especially exposed when growth stalls for long stretches, putting retirements at risk. The firm said the upgrade means it can tailor communications better for defined contribution workplace savers. In DC schemes, what members get at retirement hinges on what they pay in and how those investments perform, not a set payout tied to salary.
Timing is key here: the UK’s targeted-support regime just launched. According to the FCA, the new framework allows authorised banks, pension providers, and investment firms to offer suggestions to groups of consumers who share certain characteristics—something that falls between broad guidance and full-blown individual advice. The regulator figures roughly 23 million consumers aren’t being reached by existing advice and guidance options.
Back in February, L&G ran tests on its cash-related communications, finding 85% of individuals wanted to read the materials. Most found them straightforward—95% said they were easy to understand—and 93% reported the next steps were clear. Laura Mason, L&G’s chief executive of retail, called the approval an “important milestone.” For Paula Llewellyn, chief executive of DC & Workplace Savings, getting prompts to members at the right time is key to nudging them forward. That unit oversees more than £200 billion in DC assets and 5.8 million members, according to L&G. Legal General Group
The company is working on new features for its Guided Income product, aiming to steer savers as they convert their pension pots into retirement income. The tool would blend drawdown flexibility in the initial phase with recommended spending bands, then flag to members down the line when locking in a steadier income—think annuity—might be the smarter move.
L&G shares picked up 1.87% to 256.40 pence on the sell side and 256.45 pence to buy, pulling ahead while the FTSE 100 slipped 0.12%, based on Hargreaves Lansdown data, which noted a delay of at least 15 minutes. The gain wasn’t dramatic compared to recent swings, but it gave the stock a lift as the rest of London’s blue chips traded lower.
L&G now joins the initial group of companies aiming to carve out space in the new market ahead of a potential influx. Back in April, Royal London and Quilter got the green light for targeted-support permissions. Ben Hampton, Royal London’s advice head, described the setup as a “sliding scale of help.” Quilter CEO Steven Levin said it might “shift the dial” for those not seeking full advice. Pensions Age
But here’s the snag: targeted support doesn’t equal a personal recommendation, and firms could blur that boundary as they mine broad customer data for prompts. Kristina MacPherson at Penningtons Manches Cooper flagged fresh uncertainty over where regulatory lines actually sit, warning this week that firms with flimsy governance could slip into giving “de-facto advice.” Penningtons Manches Cooper
For L&G, it’s all about whether members really alter their behavior—straightforward, commercially speaking. The regulatory hurdle looks tougher. The company must demonstrate that nudges around cash and retirement income genuinely lead to better results, all without steering people into unsuitable decisions.
