Almost a third (30%) of people trust artificial intelligence (AI) to help with their pension, Scottish Widows has revealed.

The firm’s latest Retirement Report found that with over 26 million UK adults lacking confidence when managing their savings for retirement, more are now turning to AI to better understand their pension.

Over two in five (42%) people are comfortable using AI to explain pension jargon, while 37% would be open to calculating how much their need for retirement with this technology. Over a quarter (28%) said they would use the technology to work out how much they need to save each month.

Scottish Widows said that trust is a "huge factor" when using AI for money decisions. Financial Conduct Authority-regulated AI tools come with formal consumer protections, which provide a safety net if things don’t go as planned.

Of the 30% who trust AI tools to give them guidance about their pension, 80% say their most trusted source is either their pension provider or firms that already provide financial guidance or advice.

One in five (20%) trust technology firms that don’t specialise in money more than any other provider, which the firm said highlights the “need for further education on how consumer protections differ”.

Scottish Widows also stated that its report revealed that while AI is a useful tool for demystifying financial products, a desire to speak to a financial professional for more complex decisions remains.

One in 10 (10%) retirees would be comfortable with AI suggesting the best way to withdraw their pension, while 48% of people are worried that AI may give wrong or unsuitable pension advice.

However, 31% would take AI-generated insights to a professional financial adviser.

Chief customer and digital officer at Scottish Widows, Maria Herrero-Bullich, stated: "AI has the power to simplify complicated financial topics, personalise guidance, and make everyday decisions around pensions, savings and investments much easier to manage. As it becomes a normal part of managing our money, trust is essential. It’s clear that for those bigger, more complex moments people still value speaking to a financial expert, so the human factor and AI can comfortably co-exist to provide people with the confidence to make more informed decisions about their future.

"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.

"We’re building new AI-powered assistants to help customers navigate the complexities of financial decisions. Tools like our investment agent InvestAI, embedded in our app, are designed to build both confidence and capability, opening up investing to those who’ve felt it’s not for them."

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