Artificial intelligence is transforming the way people interact with their pension, new research from Scottish Widows shows.
According to the firm’s latest Retirement Report, almost one in three (30%) people trust AI tools to give them guidance about their pension and two in five (42%) are comfortable using AI to explain pension jargon.
More than a third (37%) said they would be open to calculating how much they need for retirement with AI, while over a quarter (28%) said they would use it to work out how much they need to save each month.
Of those who use AI tools to give them guidance, the overwhelming majority (80%) say their most trusted source is either their pension provider or firms that provide financial guidance or advice. However, one in five (20%) say they would trust technology firms that don’t specialise in money more than any other provider.
Maria Herrero-Bullich, chief customer & digital officer at Scottish Widows, said: “AI has the power to simplify complicated financial topics, personalise guidance, and make everyday decisions around pensions, savings and investments much easier to manage. 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.”
The findings also show that despite AI being used to demystify financial products, there remains a strong desire to speak to a financial professional for more complex decisions.
Scottish Widows said just one in 10 retirees would be comfortable with AI suggesting the best way to withdraw from their pension, while just 5% of over-50s plan to rely on AI tools before taking money from their pot.
Almost half (48%) of people are worried that AI may give wrong or unsuitable pension advice, while 43% worry about the safety of their data and 38% don’t think it would take their personal circumstances into account.
However, AI can help people take their first step towards financial advice, with nearly a third (31%) stating they would take AI-generated insights to a professional financial adviser and 24% use AI information to have more informed conversations with their pension provider.
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