Over one in five investors (23%) are risking poor financial outcomes by going against the recommendations of their financial adviser, new research from Scottish Widows has revealed.

A study by the group found that around a third (34%) of investors had chosen to ignore their adviser’s recommendations because they had held back relevant information which the adviser couldn’t factor in.

With the quality of advice dependent on the accuracy of the information a client shares with their adviser, Scottish Widows said that its findings point to an “honesty gap” in financial advice.

A third of respondents (33%) felt the advice they received was not right for them at the time, and 27% said they weren’t clear on the outcome of their adviser’s plans. The research also found that 28% of investors argued the advice received went against their values.

Meanwhile, 29% of respondents admitted they had chosen to follow the advice of friends and family over their adviser.

Intermediary wealth director at Scottish Widows, Jenny Davidson, commented: “The ‘honesty gap’ remains a significant challenge for advisers. When people withhold or overlook key details, it can directly affect the quality and relevance of the financial advice they receive.

“While friends and family may feel like a natural first port of call, their guidance may lack the professional and impartial expertise of regulated financial advice.

“Ultimately, effective advice only works on trust – and without transparency, there is a real risk that individuals make decisions that could lead to poorer financial outcomes.”

Scottish Widows’ study was based on responses from 1,001 UK consumers with a minimum of £100,000 investible assets as well as a pension.

The group’s findings also indicated that the use of AI to support financial decisions is growing in popularity, with over three in five investors (63%) considering low-cost AI-powered services to help with basic financial planning.

Advised investors were also more likely to use a low-cost AI service for basic planning needs (72%), with a quarter (24%) very likely to consider this option if it were available.

“As trust in AI-powered tools grows, the need for openness and confidence in the advice process remains just as important,” added Davidson.

“AI will play a role in the future of advice, particularly for targeted support and more transactional needs. However, the strongest outcomes are likely to come from a human-in-the-loop approach – enhancing, rather than replacing professional expertise for clients with more complex investment requirements.”

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