Most employers see AI improving pension communications

New findings from WTW suggest that artificial intelligence (AI) has the potential to enhance employer communication and engagement with members of defined contribution (DC) pension schemes. The firm’s recent UK DC Pensions and Savings Survey reveals that 80% of employers anticipate AI will “fundamentally change” how pensions and retirement information is shared and discussed.

In its survey of 229 employers, WTW found that nearly half (48%) intend to investigate AI applications by pension providers over the next two years, while 11% have already started this process.

Among employers, 46% plan to incorporate AI-related terms into future provider contracts, and 7% have already done so. On the employee side, WTW reports that over half (51%) are comfortable using AI for basic retirement inquiries. A similar share (47%) is open to personalized AI guidance, though fewer (38%) would allow AI to make decisions for them.

Robert Callard, a senior director at WTW’s financial planning division, stated: “The biggest challenge facing DC pensions is helping members make informed decisions throughout their savings journey and into retirement. AI has the potential to make support more accessible, more personalised and available when people need it most.

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.”

Other studies present varied perspectives on AI’s impact on pensions and retirement. Recent research from Aptia highlights that older pension scheme members are increasingly relying on digital tools, such as provider websites.

Regulatory bodies are also addressing AI’s role in pensions. The Pensions Regulator has formed an advisory council to monitor AI’s influence on the sector, while the Financial Conduct Authority is developing guidelines for AI use across financial services.

Penfold, a technology firm, advises pension schemes to scrutinize their providers’ AI usage and ensure clear governance and data handling practices. Meanwhile, communications consultancy Quietroom cautions that many AI responses about pension schemes are inaccurate and often sourced from unrelated websites.