LONDON, May 1, 2026, 16:02 BST
Legal & General Group Plc has received Financial Conduct Authority approval to deliver targeted support, clearing the FTSE 100 insurer and asset manager to make more tailored suggestions to workplace pension savers.
The first live use will focus on members whose pension savings are fully held in cash, a corner of the market where long periods of weak growth can damage retirement outcomes. The firm said it will now be able to give more relevant communications to defined contribution, or DC, workplace members; in a DC pension, the final pot depends on contributions and investment returns, not a fixed salary-linked promise.
The timing matters because the UK’s targeted-support regime has only just gone live. The FCA says the framework lets authorised banks, pension providers and investment firms make suggestions to groups of consumers with common characteristics, sitting between generic guidance and full individual advice; the regulator estimates about 23 million consumers are underserved by current advice and guidance markets.
L&G said tests of its cash-related communications in February showed 85% of individuals wanted to read the material, 95% found it easy to understand and 93% were clear on what to do next. Laura Mason, chief executive of retail at L&G, called the approval an “important milestone,” while Paula Llewellyn, chief executive of DC & Workplace Savings, said better-timed prompts can help members take the next step. L&G says that unit looks after 5.8 million members and more than £200 billion in DC assets under management. Legal General Group
The company plans to add targeted support to its Guided Income product, now in development, which is intended to help savers turn pension pots into income in retirement. It would combine drawdown in the early years with suggested spending ranges, and later prompt members when a more secure income, such as an annuity, may be worth considering.
L&G shares were shown up 1.87% at 256.40 pence to sell and 256.45 pence to buy, outperforming a 0.12% fall in the FTSE 100, according to Hargreaves Lansdown data that said prices were delayed by at least 15 minutes. The move was not large by recent standards, but it gave the stock some support on a day when the broader London blue-chip index was weaker.
The approval also puts L&G into a first wave of firms trying to shape the new market before it becomes crowded. Royal London and Quilter received targeted-support permissions in April, with Royal London’s advice chief Ben Hampton calling the framework a “sliding scale of help” and Quilter CEO Steven Levin saying it could “shift the dial” for consumers outside full advice. Pensions Age
There is a catch. Targeted support is not the same as a full personal recommendation, and the line may be tested as firms turn broad customer data into nudges. Kristina MacPherson at Penningtons Manches Cooper wrote this week that the regime brings uncertainty around regulatory boundaries and raises the risk of firms drifting into “de-facto advice” if governance is weak. Penningtons Manches Cooper
For L&G, the commercial test is simple enough: whether members actually change behaviour. The regulatory test may be harder. It has to show that nudges about cash and retirement income improve outcomes without pushing people into choices that do not fit their needs.
