{"id":110452,"date":"2025-07-01T10:35:00","date_gmt":"2025-07-01T09:35:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=110452"},"modified":"2025-07-01T10:06:49","modified_gmt":"2025-07-01T09:06:49","slug":"new-reforms-bank-accounts-pensions","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/new-reforms-bank-accounts-pensions\/","title":{"rendered":"New Reforms Set to Change How Bank Accounts and Pensions are Managed \u2013 What You Need to Know"},"content":{"rendered":"\n

A new overhaul <\/strong>of financial services will give millions of savers, pensioners, and bank customers access to free, tailored money advice. Under the proposed reforms, financial firms like banks, pension providers, and investment platforms will be able to offer direct suggestions on managing finances, even if customers have not requested them.<\/p>\n\n\n\n

These changes, announced by the Financial Conduct Authority (FCA<\/a>), are designed to address the longstanding \u201cadvice gap<\/strong>\u201d that has left many individuals without essential guidance on crucial financial decisions. <\/p>\n\n\n\n

As a result, customers will now receive targeted, ready-made financial advice aimed at helping them make more informed decisions about their savings, pensions, and investments.<\/p>\n\n\n\n

Bridging the Advice Gap<\/strong><\/h3>\n\n\n\n

Currently, financial advice is largely available only to those who can afford the high costs of private consultations, often amounting to 1-3%<\/strong> upfront and 2%<\/strong> annually. The FCA\u2019s new reforms aim to bridge this significant gap. <\/p>\n\n\n\n

According to the FCA, only 9%<\/strong> of adults currently receive regulated financial advice, with millions of others unable or unwilling to pay for it. The new regime will allow banks <\/a>and pension providers to deliver advice-like suggestions based on customers’ characteristics, such as age or savings behaviour, without violating existing regulations.<\/p>\n\n\n\n

The intention is to provide practical guidance on matters like how much to save for retirement <\/strong>or which funds offer better returns, which is expected to benefit those with pensions, savings accounts, or investment portfolios. <\/p>\n\n\n\n

The move is being supported by organisations like Pension Wise <\/strong>and Citizens Advice<\/strong>, which are expected to play a role in assisting people who may feel overwhelmed by the new guidance.<\/p>\n\n\n\n

Sarah Pritchard<\/a>, Executive Director at the FCA, hailed the reforms as a \u201conce-in-a-generation\u201d opportunity to provide individuals with the support they need to navigate their financial futures. <\/p>\n\n\n\n

The reforms are particularly timely given the increasing number of individuals with significant savings who could be earning higher returns but are hesitant to act due to a lack of knowledge or confidence.<\/p>\n\n\n\n

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Our proposals for targeted support aim to help millions of people make key decisions about their pensions and investments.

Read more https:\/\/t.co\/ZCWAF8ReAh<\/a>#HelpingConsumers<\/a> #FCAGrowth<\/a> #FinancialRegulation<\/a> #FinancialServices<\/a> pic.twitter.com\/Fap0PrmaNb<\/a><\/p>— Financial Conduct Authority (@TheFCA) June 30, 2025<\/a><\/blockquote>