Retirement savers are being warned about the potential risks of losing money or making irreversible mistakes if they rely exclusively on artificial intelligence to answer financial questions.
PensionBee stated that although AI can be a “great tool”, its research into common questions regarding retirement savings showed that responses can omit crucial details.
The firm found particular problems with queries regarding major life events or where a user’s location was unstated.
Becky O’Connor, head of pensions at PensionBee, said: “An answer can contain correct information and still leave you with the wrong impression because something important is missing.
“This is one of the biggest risks with using AI for financial questions.
“Consumers need to look beyond whether an answer sounds right and check whether it gives them the full picture before acting.
“AI can be a great tool when used alongside trusted sources such as MoneyHelper, gov.uk, HMRC or your pension provider.”
Ms O’Connor also warned that AI might not always appreciate when someone asking for help is in vulnerable circumstances.
She said: “Someone in a genuinely difficult financial situation may turn to an AI chatbot because they don’t want or can’t afford to pay for advice.
“That’s exactly when recognising the wider circumstances matters most.”
PensionBee advised that users should keep in mind that a clear and confident AI answer can still be wrong or incomplete.
It recommended that UK users make their location clear and provide relevant context, such as age, pension type, or ongoing major life events.
Individuals should also refrain from sharing personal details, such as account numbers and passwords.
Additionally, the company advised asking neutral questions, checking sources, and verifying crucial details regarding tax, deadlines, and withdrawals before acting.
Finally, PensionBee urged people to speak with organisations like Citizens Advice, MoneyHelper, or their pension provider.
