AI can’t replace real retirement advice

Retirement planning is too important to rely on generic answers. While tools like ChatGPT are growing in popularity, they provide guidance – not regulated, personalised advice, tailored to your circumstances.

Recent findings¹ highlight a rising trend of people turning to AI for financial decisions, despite concerns around accuracy and suitability. When recently writing about the use of AI tools, the Financial Conduct Authority (FCA) cautioned, ‘Sometimes AI provides information that’s just incorrect. These are known as ’hallucinations’. It happens when AI misinterprets information or fills in the blanks with things that sound right but aren’t true. The tricky part is that AI sounds confident, which makes it seem genuine. AI doesn’t always give up-to-date content. A lot of what it’s trained on can be outdated.’

The FCA provide a reminder, ‘We don’t regulate advice provided by general-purpose AI tools, this means that you won’t be eligible for protections from the FSCS or FOS.’

AI can help explain concepts, but it doesn’t understand your full financial picture, long-term goals or attitude to risk. That’s where professional advice matters, giving you confidence that decisions are based on your unique circumstances.

¹PensionBee 2026

It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored advice and is for guidance only. Some rules may vary in different parts of the UK.