Millions turn to AI for pensions advice

23 March 2026

Millions of UK adults are now using artificial intelligence (AI) tools to help manage their finances and begin planning for retirement, according to recent industry research.

A study from Lloyds Banking Group last year found that more than half of UK adults (over 28 million) had used AI in the previous year to support their financial decision-making. Tasks included getting answers to questions about budgeting, saving and longer-term financial planning, including retirement planning. 

Among those who have used AI for financial tasks, around 39 per cent said they had used it to help with future planning. That includes help with planning for their pensions and retirement goals.

How are people using AI for pension planning?

More recently, PensionBee (reported by Pensions Age) analysed Google search data. They found that people are “increasingly turning to AI rather than financial guidance or advice websites to begin their retirement planning”.

PensionBee say that AI is “increasingly satisfying the typical, early-stage needs of pension holders when they start to consider pension and retirement options”. That may give reassurance that consumers aren’t overwhelmingly trusting AI to help with the actual decision-making on retirement planning. 

ChatGPT say that when it comes to pension planning, people commonly use its service to:

• Model ‘what-if’ retirement scenarios.

• Sense-check retirement decisions.

• Translate pension jargon into more understandable language.

• Tax awareness and planning.

• Coordinate the whole retirement picture.

Luis Mejia, head of data and AI at PensionBee, said the technology can help make financial information more accessible, but warned that it should not replace professional advice.

“As many of us have experienced, AI is a generally good substitute for some financial guidance,” he said, although he added that regulated advice remains important for major financial decisions.

He continued: “In the face of continued improvements to AI technology, the retirement industry faces a serious challenge of remaining relevant and trusted while savers increasingly rely on AI for more complex guidance and even personalised advice”.

Where does AI fit into wider information and advice?

The growing use of AI reflects a wider shift in how consumers access financial information. Generative AI tools like ChatGPT allow users to ask detailed questions and receive immediate responses. That makes them an appealing starting point for financial research.

Jas Singh, CEO of consumer relationships at Lloyds Banking Group, said the technology is already helping many consumers feel more confident about managing their money: “AI is rapidly transforming how people manage their money, with the potential for millions of consumers to feel more confident and in control of their personal finances. 

“From everyday budgeting to planning for the future, we’re already seeing people use the technology to make smarter choices and build financial resilience.”

However, he has a warning about the accuracy of AI information or advice: “As AI becomes a bigger part of our financial lives, trust is the next frontier. People want to be sure the information they receive is accurate, secure and truly tailored to their needs.” 

The Lloyds research highlights ongoing concerns about reliability and trust. Around four-in-five AI users worry about receiving inaccurate or outdated information when using the technology for financial queries. Privacy concerns and the lack of personalised advice were also cited as potential risks.

Industry figures stress that while AI can play a useful role in improving financial engagement, it should be seen primarily as a starting point for research. It’s not a replacement for professional financial advice or guidance, particularly when making significant decisions about pensions and retirement.