The FCA has today published feedback statement FS20/12 summarising the responses and next steps following discussion paper DP19/2 on intergenerational differences.
The paper summarises the average financial circumstances for the different generations and then sets out how financial services can better meet intergenerational financial circumstances.
The paper structures the feedback around the following 5 suggestions:
- consumers should be provided with better support to manage increased responsibility and additional exposure to risk
- consumers should have access to more hybrid and flexible products to help balance short and long-term needs
- certain consumer segments would benefit from access to lending products needed for their financial goals
- consumers would benefit from access to better products to fund long-term care
- consumers may not have sufficient savings levels to meet future financial needs
The FCA plans to focus their efforts on the top three bullets above and will continue to provide oversight and monitoring of intergenerational differences through their consumer research and engagement programme. They do not plan to change any rules or take any further immediate action on the matter.