Expert-backed AI earns pension savers' trust
- By editor
- 7 hours ago
- 3 min read
AI is transforming the way people access financial support, according to data from Scottish Widows’ latest retirement report.
The pensions giant’s research revealed that almost a third (30 per cent) of people currently trust AI tools to give them guidance about their pension. Of these, 80 per cent say their most trusted source is either their pension provider, or firms that already provide financial guidance or advice.
Scottish Widows emphasised the importance of trust when using AI for decisions about money, highlighting that FCA-regulated AI tools come with formal consumer protections, which provide a safety net if things don’t go as planned. It added that unregulated or general-purpose AI tools don’t offer this protection, and that if they give inaccurate or unsuitable advice that leads to financial loss, people may be left without any support.
The survey also found that over two in five (42 per cent) people are comfortable using AI to explain pension jargon, 37 per cent would be open to calculating how much they need for retirement with AI and more than one in four (28 per cent) to work out how much they need to save each month.
The findings indicated that while AI can be a useful tool for demystifying financial products and helping people make decisions about their retirement options, there is still a strong desire to speak to a financial professional for more complex decisions when the stakes are higher.
Just one in 10 (10 per cent) retirees would be comfortable with AI suggesting the best way to withdraw from their pension. Among those aged 50 and over, only five per cent plan to rely on AI tools before taking money from their pot.
Almost half (48 per cent) of people are worried that AI may give wrong or unsuitable pension advice, 43 per cent worry about the safety of their data and two in five (38 per cent) don’t think it would take their personal circumstances into account.
Scottish Widows said that AI has a valuable role to play in helping people take their first step towards financial advice, with nearly a third (31 per cent) of survey respondents saying they would take AI-generated insights to a professional financial adviser and a quarter (24 per cent) using AI information to have more informed conversations with their pension provider.
Maria Herrero-Bullich, Scottish Widows’ chief customer and digital officer, commented: “AI has the power to simplify complicated financial topics, personalise guidance and make everyday decisions around pensions, savings and investments much easier to manage.
“As it becomes a normal part of managing our money, trust is essential. It’s clear that for those bigger, more complex moments people still value speaking to a financial expert, so the human factor and AI can comfortably co-exist to provide people with the confidence to make more informed decisions about their future.
“One thing that’s important to understand is the difference between support from regulated firms and general-purpose AI tools, with the former carrying much greater protection for the consumer.
“We’re building new AI-powered assistants to help customers navigate the complexities of financial decisions. Tools like our investment agent InvestAI, embedded in our app, are designed to build both confidence and capability, opening up investing to those who’ve felt it’s not for them.”
Pictured: Maria Herrero-Bullich
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