Four in five employers believe artificial intelligence will fundamentally change the way pensions are managed, communicated and delivered, a new report has found, while about half of employees would be comfortable with AI answering basic retirement questions and giving guidance. 

AI will transform the UK defined contribution market, as employers see a role for AI to improve member communications, engagement and retirement outcomes, the research by WTW, based on responses from 229 employers, suggests. It found that 80% think AI will fundamentally alter pensions. 

“AI has the potential to make support more accessible, more personalised and available when people need it most,” said Robert Callard, senior director in WTW's Financial Planning business. 

“Employees are broadly open to AI when it comes to receiving information and guidance. That creates an opportunity for employers and providers to rethink how they engage members. The key will be combining valuable human interactions with new technology, strong governance and human oversight so that trust is maintained,” Callard said. 

WTW's latest UK DC Pensions and Savings Survey out today found that about half (51%) of employees would be comfortable with AI answering basic retirement questions, and 47% would welcome AI-generated guidance tailored to their personal circumstances. However, acceptance falls to 38% for the technology making decisions on members’ behalf. This echoes earlier findings by research for the Financial Conduct Authority earlier this year. It suggested that consumers are already using AI widely to ask financial questions but do not generally delegate financial decisions, with consumers’ trust in AI declining for more autonomous systems.  

Employers are now starting to assess the use of AI in pensions, according to the report. About one in 10 (11%) has evaluated pension providers' AI capabilities, but a further 48% plan or are considering doing so within the next two years. Reflecting this development, 7% of employers have already introduced AI requirements or restrictions into provider contracts, but a further 46% plan or are considering doing so.

The Society of Pension Professionals’ AI Survey 2026 found that over a third (34%) of 400 pension professionals believe AI can support member advice and guidance.  

However, the capabilities of AI are also raising regulatory questions. The government recently launched a call for evidence on how data regulation interacts with AI and other data-intensive technologies, including where existing legal, technical and governance arrangements create uncertainty or friction. 
 

With AI changing how data is collected, processed and used, it is important that the regulatory framework keeps pace to ensure it remains fit for purpose, said Victoria Roberts, cyber and data lead at Zedra. 

 

“For pension schemes, this is particularly relevant. Large volumes of member data can move across a complex network of trustees, administrators, advisers, technology providers and other third parties, while trustees remain accountable for ensuring that members’ interests are protected,” she noted. 
 

Any future approach to data regulation should provide clarity around accountability, governance and the appropriate use of data across these relationships, she argued: “Trustees need to be able to understand not just what data and where data is held, but how it is being used, including where AI-enabled technologies form part of the process.” 
 

In May, the Pensions Regulator outlined its AI expectations on trustees. These range from clear governance for AI use, testing AI systems and evaluating risks, to making members aware of AI-driven fraud methods and responding effectively. TPR stressed that “accountability for outcomes remains with trustees and scheme managers, regardless of whether decisions are supported by AI systems”. It plans to publish guidance later this year. 
 

AI is also a topic of debate in the financial advice and broader financial services sector. The FCA will launch an AI good and poor practice publication later this year, having engaged directly with firms. The FCA’s Mills Review into AI has recommended stricter regulations and boundaries for AI in financial services, while enabling the foundations for agentic finance, with a new AI-enabled agentic supervisory model. Author Sheldon Mills also said there should be a trusted public-interest AI-enabled financial capability service.