Skip to main content

Article

Get the right support for you

3 min read 27 Mar 25

Sometimes circumstances, such as negative life events, can affect our ability to handle financial matters, making us more vulnerable in ways that aren't always obvious. Anyone can become vulnerable due to health, life events, their ability to withstand financial or emotional shocks, or because of poor financial or digital literacy. This impact may last for a short time, sometimes a longer period, or even ongoing.

The Financial Conduct Authority (FCA) defines a vulnerable customer “as someone who, due to their personal circumstances, is especially susceptible to harm, particularly when a firm is not acting with appropriate levels of care”. They want “to see customers in vulnerable circumstances receive good outcomes” – a message we wholeheartedly agree with.

Here are some examples of vulnerabilities:

Health

  • Hearing or visual impairment
  • Cognitive impairment
  • Mental illness
  • Long-term illness
  • Physical disability

Life events

  • Bereavement
  • Relationship breakdown
  • Caring responsibilities

Resilience

  • Ability to withstand financial or emotional shock
  • Over-indebtedness
  • Low savings
  • Insufficient or irregular income

Capability

  • Low financial awareness and/or confidence in handling finances
  • Poor literacy or numeracy skills
  • Low English language skills

New research reveals only 4 in 10 disclose their circumstances

Only 4 in 10 vulnerable customers say they have disclosed their circumstances to their financial services provider, according to new research commissioned by the FCA.*

They reported different reasons for customers in vulnerable circumstances not disclosing personal situations, including:

  • Embarrassed (37%)
  • Don’t want to be treated differently (24%)
  • Worried may get a worse deal (23%)
  • Didn’t know my firm would help (19%)
  • I have security concerns (16%)

The FCA say that those who do open up tend to have better experiences. Three quarters of vulnerable customers who told their firm about their circumstances (74%) said that staff asked the right questions to understand their situation, 6 in 10 (57%) said their firm ‘cared’, and 58% said their firm took action to provide support they needed.

Get the right support

If you find yourself in a vulnerable situation, it’s important you seek appropriate support. Tell your financial adviser and your pension or investments provider about your personal circumstances and if you have any specific requirements, even if only temporary as it could make a difference. We’re all here to help – to ensure you receive the correct support.

You can find more information on our Care and Support hub.

* fca.org.uk/news/press-releases/vulnerable-customers-encouraged-open-firms-get-right-support
  fca.org.uk/publication/external-research/vulnerability-review-improving-outcomes-consumers-engaging-   financial-services-firms.pdf

Related content

View all insights
View all insights

"M&G Wealth Advice” is a trading name of M&G Wealth Advice Limited which is registered in England and Wales. Registered office at 10 Fenchurch Avenue, London EC3M 5AG. Registered number 5739054. Authorised and regulated by the Financial Conduct Authority.

M&G plc, incorporated and registered in England and Wales. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. Registered number 11444019. M&G plc is a holding company, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority.

M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.