Targeted support: what does it mean for annuity customers?

17 December 2025

Written by Retirement Line

The Financial Conduct Authority (FCA), the UK’s financial regulator, has given further confirmation of how ‘targeted support’ will offer millions of people extra help with their pensions and investments.

The FCA announced the new targeted support framework in December 2024. Set for launch in April 2026, the aim is to make it easier for millions of savers to make confident, informed decisions about their pensions and investments. 

Individuals and firms providing targeted support will suggest solutions for many pension and investment decisions. It is aimed at those who currently do not seek or cannot afford financial advice

So, let’s look at targeted support in more detail and, in particular, how it might affect pension savers who consider buying an annuity as part of their retirement income strategy. 

What is targeted support?

Targeted support is a new type of regulated help that sits between guidance and full financial advice:

• Guidance is where you are given information about your options but there is no recommendation of what you should do. You make your own decision. It may carry a fee charged directly, but it is sometimes free or funded in another way.

• Advice is personalised to you as an individual. It is delivered by a regulated and qualified adviser, who makes recommendations about your financial affairs. It usually carries a fee charged directly.

• Targeted support is where you are given suggestions about actions that people in similar situations to you might take. It doesn’t involve advice or personalised recommendations. It may carry a fee charged directly, but it is sometimes free or funded in another way.

Think of targeted support as the financial services equivalent of “people like you tend to…”.  Importantly, the FCA will allow product providers and others to deliver this new form of help for free at the point of delivery. They can recover the cost through other means, such as through investment fund charges or product fees.

In summary, targeted support means you could receive clearer, more useful support from your pension or investment provider — without the upfront cost or formality of advice.

Why is the FCA introducing this?

Many people find pension and investment decisions confusing, especially as they approach retirement. Many make their decision on their own with little expert support. The FCA’s 2024 research found that 59% of people made pensions or investment decisions without any advice or guidance at all. The FCA believes this can lead to poor outcomes such as:

• Cashing in pensions too quickly.

• Holding long term investments in low-return cash funds.

• Selecting high withdrawal rates in retirement, meaning people can run out of money.

Targeted support aims to:

• Improve people’s financial confidence.

• Reduce stress around pension and investment decisions.

• Avoid uninformed or risky decisions.

• Make sure people stay better informed and on track.

What kind of help could you receive?

Someone providing targeted support – often your pension or investment provider – first has to identify different customer situations and segments. For example, one segment might be customers who are choosing investments and how much to invest for retirement. 

If you fit one of these segments, the provider may offer suggestions designed for people in your situation. They would explain the pros and cons of the suggestions, and direct you to useful tools such as MoneyHelper where appropriate.   

However, targeted support cannot be used to:

• Suggest consolidating pensions (bringing funds from different pension schemes into one scheme).

• Suggest or quote for a lifetime annuity, or a fixed-term annuity with no surrender value.

The FCA has decided that these decisions are too personal and require detailed information in order for consumers to make an informed choice.

Will targeted support replace financial advice?

Targeted support is not the same as advice as it is not a personal recommendation based on your full circumstances. You may still want full, regulated financial advice if you:

• Have multiple pensions to consolidate.

• Have complex needs (e.g., dependants, debts, tax considerations).

• Want a personalised retirement income plan.

• Need more help choosing between products or providers or want a mix of solutions.

Targeted support is meant to give people more help than they get today, not to replace advice where it's genuinely needed.

What about annuities?

Deciding to buy an annuity with your pension savings is seen as a highly individual decision. Because of this, the FCA has special rules around annuities, depending on whether you are considering lifetime annuities or fixed term annuities.

These rules may on the face of it appear a little confusing. But when they are applied correctly by pension scheme providers and others, anyone interested in an annuity should benefit from them.

Lifetime annuities 

Someone providing a targeted support service cannot suggest a particular lifetime annuity or offer an annuity quote as part of the service. However, they can explain what annuities are and highlight relevant features of lifetime annuities if they appear to be potentially suitable for you.

Going a step further, the person or firm providing targeted support can point you to sources of further annuity information, guidance or advice. These might include the government-backed MoneyHelper service, a financial adviser and/or an annuity broker such as Retirement Line who can explain your options and search for the best annuity rates and quotes across annuity providers.

Fixed-term annuities

The rules differ depending on whether a fixed-term annuity comes with the facility to surrender (cancel) it before the end of the term. Some fixed-term annuities have this option, while others do not.

Here are the rules on targeted support and fixed-term annuities:

• Fixed-term annuities with no surrender option: These cannot be suggested under targeted support. As with lifetime annuities mentioned above, you would need to get information and quotes elsewhere before proceeding.

• Fixed-term annuities with no surrender option: These can be suggested under targeted support, because they offer more flexibility than ‘no surrender’ fixed-term annuities.

Either way, there is nothing to lose in getting quotes from across the UK’s fixed-term annuity providers. That’s the best way to find the right product and the best annuity rate and income. 

When will targeted support begin?

The new rules are expected to come into force from April 2026. However, providers may begin preparing sooner, so you might see changes to the support you receive in the run-up to that date.

Does this change how Retirement Line can help me?

Not at all — in fact, we believe that our services are more important than ever.

As explained above, the FCA has decided that targeted support cannot be used to recommend lifetime annuities, or fixed-term annuities with no surrender value. That’s because these products are complex and personalised, and cannot be changed once purchased.

The FCA have ruled that most customers more suited to annuities cannot use a targeted support process and instead should be referred to services like MoneyHelper, financial advisers or annuity specialists like Retirement Line. This is a positive move that should help ensure that no consumers are rushed into making such an important and largely irreversible decision.

Even when a targeted support service suggests more flexible fixed-term annuities with a surrender value, the income offered will differ significantly between annuity providers. The same is true of product features like death benefits and withdrawal options.

That’s why consumers potentially have a lot to gain from comparing fixed-term products from across the market. The annuity offered via an online journey from the customer’s pension scheme or a separate annuity provider may not be the most suitable product, or pay the most income. 

Helping pension savers find the right annuity

Retirement Line, as the UK’s largest annuity broker*, is here to support any pension saver who wishes to explore their annuity options. This doesn’t change as a result of targeted support. In fact, targeted support is likely to mean more people are pointed towards specialists like us for personalised annuity help.

Our annuity service will guide you through your options, explain all the details and features available, and help you find the most suitable annuity and the highest income available on the market.

Use our free annuity calculator for an initial view of what your income could be, and talk to one of our team for further information and quotes from the UK’s top annuity providers. Please call us on 0800 652 1316 or email us at info@retirementline.co.uk.