Nearly a third of young adults have already used AI tools to obtain information about pensions and retirement planning, as the technology becomes a mainstream source of financial information for younger consumers, new research from Standard Life has revealed.

The findings come as the Financial Conduct Authority (FCA) revealed growing use of AI among younger investors, highlighting both the opportunities and risks posed by the technology.

The regulator found that four in five less-experienced investors aged 18 to 40 have used AI for help with investing, while more than half trust AI-generated information more than traditional media sources such as television, radio or newspapers.

Against that backdrop, Standard Life said its own research found that 29% of 18 to 34-year-olds have used AI to get information about pensions or retirement saving, compared with 16% of those aged 35 to 54 and just 6% of consumers aged 55 and over.

The insurer said younger users are employing AI for a range of retirement-related questions, from understanding how pensions work to navigating tax rules and exploring ways to increase savings.

Among younger people who have used it for retirement information, 41% have turned to AI to understand how pensions work, a third (33%) have used it to navigate pension tax rules and 32% to explore how they could save more.

AI is also increasingly shaping real-world financial behaviour rather than simply serving as a research tool. Standard Life found that 62% of younger users said AI had influenced decisions they made about their pension or retirement savings to at least some extent.

Echoing concerns raised by the FCA, the insurer warned that inaccurate responses, outdated information or fraudulent content could lead consumers to make poor long-term decisions.

Donna Walsh, head of master trust and IGC governance at Standard Life, said: "AI is rapidly becoming part of the way younger people navigate their finances, and pensions are no outlier.

"Used well, AI could have an important role in helping people engage earlier with their retirement planning, breaking down jargon and prompting questions they might otherwise never ask. At the same time, it should be a starting point rather than the final word."

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