Over four in five (83 per cent) consumers are turning to unregulated sources such as AI tools, social media platforms and online influencers for financial guidance, raising concerns about the quality of information being used to inform long-term retirement decisions, research from Zable has revealed.

The research found that pension decisions were among the most common areas for unregulated guidance, with 48 per cent of respondents saying they had sought pension-related advice from informal sources.

Younger adults were found to be particularly reliant on unregulated sources of information - the research showed that 93 per cent of those aged 25 to 34 and 92 per cent of those aged 35 to 44 had sought financial guidance from non-regulated sources.

In addition, 60 per cent of 35- to 44-year-olds said they had sought unregulated advice relating to pensions.

Meanwhile, the survey suggested that consumers were failing to verify the advice they receive before acting on it.

Indeed, more than two-thirds (68 per cent) said they would not check the risks involved before acting on financial advice, while the same proportion would not compare advice against trusted sources such as government websites or consumer guidance platforms.

Furthermore, 72 per cent of respondents said they do not fully read terms and conditions before acting on financial products or advice.

The research also highlighted the potential consequences of poor-quality financial information, with more than a third (37 per cent) of adults aged 25 to 34 reporting that they had lost money as a result of poor financial advice, according to analysis conducted by Zable.

Londoners were also among the groups most affected, with more than 30 per cent reporting losses due to poor pension advice.

Alongside the consumer survey, Zable assessed the quality of financial information generated by four major AI platforms - Gemini, Grok, ChatGPT and Claude - using nine personal finance questions covering areas such as financial planning, investing and insurance.

The study found that responses were often inaccurate or focused on US financial systems rather than UK regulations.

Claude performed best, achieving six passes out of nine questions, while Grok failed all nine. ChatGPT passed two questions, and Gemini passed three.

Zable concluded that while AI tools can provide a useful starting point for financial research, consumers should not rely on them without independently verifying the information provided.

Commenting on the findings, Zable senior product manager (UK Credit Cards), Arielle Rogers-Jenkins, encouraged consumers to use regulated sources and official guidance services when making significant financial decisions, particularly around pensions, investing and long-term financial planning.

Rogers-Jenkins also advised consumers to verify whether advisers are authorised by the Financial Conduct Authority and to treat information from AI tools and social media as educational resources rather than a substitute for personalised financial advice.

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