AI Trust in Pensions Rises But Fears Remain
Trust in artificial intelligence for pension guidance is growing, according to new research from Scottish Widows. The study indicates that 30 per cent of people now trust AI to provide advice on retirement planning, with 80 per cent of these respondents placing their faith in guidance delivered directly by their pension provider or financial advice firm.
There is notable comfort using the technology for routine tasks. Over two fifths (42 per cent) are comfortable with AI explaining pension jargon, while 37 per cent are happy to use it to calculate how much they need for retirement. A smaller group, 28 per cent, is open to using AI to work out how much they need to save each month.
One in five people (20 per cent) said they would trust technology firms that do not specialise in money over any other provider. Scottish Widows suggested this highlights a need for further education on how consumer protections differ between general-purpose AI tools and regulated financial services.
Human experts still preferred
Despite the rising acceptance of automated tools, people remain hesitant about complex decisions. Just one in ten (10 per cent) retirees would be comfortable using AI to suggest the best way to withdraw from their pension pot. That figure drops to 5 per cent among those aged 50 and older.
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Nearly half (48 per cent) of people worry that AI could give wrong or unsuitable pension advice. Concerns also exist regarding data safety and the lack of personalization, with 43 per cent concerned about the safety of their data and 38 per cent not thinking the technology would take their personal circumstances into account.
While confidence in complex advice is low, AI is still seen as a helpful starting point. About 31 per cent said they would take AI-generated insights to a financial adviser. The data suggests that while the technology can help people take their first step, the human element remains critical for final decisions.
“AI has the power to simplify complicated financial topics, personalise guidance, and make everyday decisions around pensions, savings and investments much easier to manage,” commented Scottish Widows chief customer & digital officer, Maria Herrero-Bullich. “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.”
