Honesty gap emerges as one in four investors go against advice

11 March 2026

New research from Scottish Widows shows that nearly a quarter (23%) of investors are putting their financial outcomes at risk by going against the recommendations of their financial adviser. 

The findings reveal a significant ‘honesty gap’. One in three (34%) investors admitted they ignored advice because they withheld relevant information that their adviser could not factor in. As high quality advice relies on accurate and complete client information, this lack of transparency may undermine outcomes. 

However, transparency wasn’t the only barrier. 

• 33% felt the advice they received did not feel right for them at the time. 
• 27% said they did not fully understand the outcome of the adviser’s plan. 
• 28% said the advice received went against their personal values. 
• 29% reported choosing to follow the advice of friends and family over professional advice.

Investors increasingly turn to AI for basic financial planning

The research also highlights growing interest in AIpowered financial tools. Nearly twothirds (63%) of investors are considering lowcost AI services for basic financial planning. 

Advised investors show even greater openness, with 72% saying they would consider an AI tool for simpler needs, and 24% being very likely to use one if available. 

Half of investors (49%) see AI as a useful starting point for planning but still prefer human specialists for more complex decisions. More than a third (36%) would rather work with a human adviser from the outset, while only 9% prefer no human contact at all.

Expert commentary

Jenny Davidson, Intermediary Wealth Director at Scottish Widows, said: 

“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. And 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. One of the potential benefits of AI is clients may feel more comfortable opening up and sharing information they may hesitate to disclose face-to-face. However, the human element remains essential for navigating more nuanced decisions. 

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

Download full press release (PDF, 145KB)

Notes

Methodology

Censuswide surveyed 1001 UK consumers with a minimum of £100k investible assets, who have a pension and were aged 18+. This survey was carried out from 22/07/25 to 29/07/25.

About the Investor Confidence Barometer

Since 2022, Scottish Widows’ Investor Confidence Barometer has provided a unique snapshot of how financial advisers, paraplanners, advised investors and non-advised investors are feeling about today's emerging industry issues.

About Scottish Widows

AFounded in 1815, Scottish Widows is part of Lloyds Banking Group, the UK’s largest digital bank and financial services group. With more than £232bn assets under administration and more than 6 million customers, Scottish Widows’ award-winning product range includes workplace and individual pensions, annuities, life cover, critical illness and income protection, as well as savings and investment products.

More than 2 million customers access Scottish Widows products and services through the Lloyds Bank and Scottish Widows apps, in addition to accessing directly through independent financial advisers. The Scottish Widows Platform is trusted by more than 18,000 advisers and 5,400 advice firms, which manage the pensions and investments of almost 166,000 clients. .