Most Britons don't trust AI chatbots on pensions: Our agony uncle Steve Webb gives his take
Almost half of UK adults say they would not trust artificial intelligence tools such as chatbots or virtual assistants to help manage their pension, according to new research that highlights a growing divide between industry adoption and consumer confidence.
The Scottish Widows Retirement Report 2026 found that 44% of people would not trust AI for pension decisions, with a further 26% uncertain about whether they would rely on such technology. The findings reveal deep-seated concerns about the rush to automate retirement planning at a time when the pensions industry is rapidly embracing AI capabilities.
Nearly half of respondents worry that AI could provide wrong or unsuitable pension advice, while more than two-fifths are concerned about the security of their personal data. These fears emerge as AI adoption in the UK pensions sector reached 87% by early 2025, according to the Society of Pension Professionals' 2026 AI Survey, though most firms were using it in only a small fraction of their services.
The trust problem
Steve Webb, who served as Minister of State for Pensions in the coalition government from 2010 to 2015 and has been This is Money's pensions agony uncle for more than eight years, says the scepticism is understandable given the complexity and importance of retirement planning.
The research indicates that pension savers want human expertise to remain central to the advice process. According to PensionBee research, 79% of UK respondents prefer a combination of human and AI interaction when managing pension accounts, with only 16% favouring entirely human support. This suggests the public sees value in technology as a support tool rather than a replacement for human guidance.
Why the industry is turning to AI
The push towards AI-powered pension tools comes against a backdrop of persistently low engagement with retirement savings. Research from Atlas Master Trust shows that 72% of UK workers do not actively engage with their workplace pension, highlighting the scale of the challenge facing the industry.
The UK also faces a persistent financial advice gap, with regulated financial advice currently reaching only around 9% of adults, according to government data published in 2026. AI tools are being explored as a potential solution to make financial guidance more accessible and affordable to the millions currently unable or unwilling to pay for traditional advisory services.
Beneficial uses already in place
While consumer-facing AI applications provoke concern, the technology is already being deployed successfully in areas that protect savers. The Pensions Regulator uses AI-enabled processes to identify pension scam websites, having assessed over 2,000 sites and enabled the removal of 29 high-risk platforms while reducing manual scanning time by around two hours per day.
This demonstrates that AI can enhance consumer protection when applied appropriately, though it does little to address fears about AI providing direct advice to individuals on their retirement planning.
Regulatory response
Regulators are taking the trust deficit seriously. The Financial Conduct Authority has been under pressure from Parliament to publish comprehensive guidance by the end of 2026 on how consumer protection rules apply to AI use in financial services.
The FCA also launched a long-term review in January 2026 called the Mills Review to examine how AI could affect retail financial services, with recommendations reported in summer 2026. This ongoing scrutiny indicates that authorities recognise the need for clear frameworks before AI tools become widespread in pension advice.
The challenge for the pensions industry will be demonstrating that AI can be deployed safely and effectively while respecting consumer preferences for human oversight. With the gap between industry enthusiasm and public trust so pronounced, building confidence through transparent practices and robust regulation may prove as important as the technology itself.
