Artificial intelligence (AI) is set to play a growing role in how people plan for retirement, but new research from Aon argues it should complement rather than replace human advice.

The professional services firm's paper, Understanding the Use and Impact of AI in Retirement Decision Making, found that AI can make retirement planning more accessible by simplifying technical information, providing instant support and improving engagement.

However, the study also identified significant risks, including inaccurate calculations, inconsistent recommendations, overconfidence and AI presenting speculation as fact.

The findings shed light on both the opportunity and the challenge facing schemes and employers. Aon said members are increasingly turning to AI because it is free, easy to access and can explain complex topics in plain English, but warned this may encourage faster decision-making without sufficient consideration of long-term outcomes.

"AI will become a significant part of how members navigate retirement. It has the potential to improve understanding and engagement – but it also introduces new risks," said Kelly Hurren, partner at Aon in the UK.

The report argues that regulated advice remains the benchmark for retirement support and recommends schemes strengthen access to advisers, engage members earlier, encourage a broader view of retirement finances and help people use AI more critically and safely.

It also urged trustees and employers to review communications and online content to reduce the risk of AI surfacing outdated or misleading pension information.

There is also the value members place on human interaction and the emotional connection they make as part of that process.

"We believe that schemes and employers which recognise this early can shape and support strategies that blend the best of digital capability with human expertise," Kelly said.

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