Empowerment, Not Nudges: A Better Way to Serve Underserved Communities

The Financial Conduct Authority’s (FCA) proposals on targeted support have been widely discussed as a step towards bridging the advice gap. But are we missing the bigger picture?

For underserved communities—those who most need accessible, trustworthy support—there’s a crucial difference between empowerment and nudges.

While targeted support offers well-intentioned suggestions, it risks funnelling people towards product-driven solutions without full accountability or consideration of all their options. A better solution already exists: financial planning that puts power back into people’s hands.

Nudges vs. Empowerment

At its core, targeted support focuses on immediate, specific needs—like helping someone adjust their pension drawdown rate or avoid unnecessary tax. But there’s a limitation:

• It’s tied to the product provider’s offering.
• It doesn’t always present a full comparison of options, such as annuities or other income solutions.
• It leaves the responsibility with the provider, not the individual, and accountability can feel diluted.

Underserved communities deserve better. They need holistic support that empowers them to take charge of their financial futures—not narrowly focused nudges that might favour one outcome over another.

The Power of Financial Planning

At the Academy of Life Planning, we’ve seen first-hand how financial planning transforms lives. It’s not about delegating decisions to someone else—it’s about equipping people to be in control of their own finances, with the tools and knowledge they need.

Here’s why financial planning delivers better outcomes:

1. Empowerment Through Education Financial planning starts with education. When people understand their options, risks, and opportunities, they make better choices.At the Academy, we empower individuals to be their own financial planners. We provide financial planning apps, guides, training, and access to workshops and peer support groups.The result? People become financially literate, competent, and confident—capable of navigating their financial lives on their terms.
2. Considering All the Options Unlike targeted support, which nudges towards specific solutions, financial planning takes a holistic view. A financial planner would consider the full range of possibilities—drawdown, annuities, hybrid strategies, and other tools—before helping someone weigh up the pros and cons. This isn’t about quick fixes; it’s about creating sustainable, long-term solutions that work for the individual.
3. The Cost Comparison The cost of delivering generic financial planning support—like the tools, education, and group workshops we offer—isn’t far off from the cost of targeted support because it is delivered on a done-with-you or done-by-you basis, as well as a done-for-you basis. But the outcomes are far better.Financial planning doesn’t just address one decision; it equips people to manage their finances for life.It promotes independence, confidence, and control—not reliance on nudges.

A Better Solution for Underserved Communities

The problem with nudges from product providers is accountability. When the focus is on steering people towards specific products, it doesn’t always leave room for alternatives that might serve them better.

Underserved communities—those often excluded from traditional advice—benefit far more from financial planning that:

• Educates and empowers.
• Builds competence and confidence.
• Creates financial security on their terms.
• Avoids conflicts of interest, like remuneration distorting outcomes

We believe that the best helping hands are at the end of your own arms. When individuals are given the knowledge, tools, and support they need, they don’t just make better financial decisions—they take ownership of their futures.

The Bigger Question

If financial planning—generic, group-based, and empowering—already exists, why isn’t it being championed more widely? Why settle for solutions that prioritise nudges over independence?

The FCA’s proposals may aim to close the advice gap, but we must ensure they don’t inadvertently steer people into product-focused decisions that limit their opportunities. Instead, we need to focus on solutions that:

• Put people in control.
• Equip them with the skills to make informed choices.
• Deliver lasting change—not short-term fixes.

At the Academy, we believe that true empowerment comes from giving people the tools to thrive—not nudges to make quick decisions. Financial planning isn’t just the better solution; it’s the right solution for building confident, financially secure communities.

Let’s focus on empowerment, not nudges. Because everyone deserves the chance to take control of their financial future—with clarity, confidence, and independence.