I asked ChatGPT how to invest my pension... This is what it said

AI-bot said it couldn’t make recommendations but listed a range of popular funds in the UK

clock • 4 min read
ChatGPT is a natural language chatbot launched by OpenAI in November 2022
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ChatGPT is a natural language chatbot launched by OpenAI in November 2022

Like far too many people in the UK, I haven’t reviewed my defined contribution (DC) investments for some while – something that is particularly problematic for me as I am a self-selector.

And like lots of other people, my reasons include insufficient expertise and, perhaps more importantly, lack of time and the amount of effort such a review would take.

Switching to my pension providers well-governed default fund could be one way forward as could getting professional financial advice. But could artificial intelligence (AI) be the answer?

ChatGPT has been much talked about in the press - with the natural language AI tool being able to complete everything from school essays to MBA exams.

But what exactly is it? Asking ChatGPT got the following response:

ChatGPT is an AI-powered language model developed by OpenAI. It is a variant of the GPT (generative pretrained transformer) architecture, which is trained on a large corpus of text data to generate human-like responses to natural language inputs. The model is capable of performing various language tasks such as text generation, text completion, and answering questions, among others. ChatGPT can be used for a variety of applications, such as chatbots, customer support, language translation, and more.

I have been using this software for a few weeks to help with, among other things, planning a day trip to Gosport, coming up with suggestions for a child's birthday present and helping me find new pieces of music to listen to.

The success rates have been pretty good - with the suggestions put forward by ChatGPT acting as a solid basis for further research. It also has the ability for you to ask follow-up questions too, which is hugely helpful.

But it isn't (yet) plugged into the internet - so, when I ask it what to do with a ten-year-old in London next Thursday, it doesn't tell me the Museum of London's main site is closed until 2026, nor does it mention the special half-term events at the capital's galleries.

Still, those things are likely to develop going forward, especially as the major search engines such as Google and Bing integrate such natural language AI into their own offerings (although Google's launch of its AI bot, Baird, wasn't without glitches).

But could the tool help me review my DC scheme investments? I asked it to see what it came back with, with the AI response italicised verbatim below.

 

What are the best 20 investment funds for a 46-year-old to save for retirement in the UK?

It's not possible to determine the best 20 investment funds for a 46-year-old to save for retirement in the UK, as the ideal investment strategy depends on several personal factors such as individual financial goals, risk tolerance, and overall financial situation.

Some general principles for retirement planning include diversifying your portfolio, regularly contributing to your savings, and considering low-cost, passively managed funds.

Additionally, a financial advisor can help you create a personalised investment strategy that takes into account your unique financial situation and goals.

Some popular investment funds in the UK include:

  • Vanguard LifeStrategy
  • Legal & General Index Trust
  • Abrdn Equity Income Trust
  • M&G Optimal Income
  • Invesco Income
  • Jupiter Income
  • Artemis Income
  • Scottish Widows Global Absolute Return Strategies
  • Baillie Gifford Global Discovery
  • BlackRock Global Funds - World Mining Fund

This list is not comprehensive and not a recommendation - and it is important to thoroughly research and understand the risks and benefits of any investment before making a decision.

 

I followed this up asking for more fund ideas…

 

Can you list a further ten top funds please?

Certainly! Here are ten more popular investment funds in the UK:

  • BlackRock Income Strategies
  • Fidelity Multi Asset Income
  • Janus Henderson Global Equity Income
  • Schroders Income Maximiser
  • Threadneedle (Lux) Global Equity Income
  • Aviva Investors Multi Strategy Target Income
  • M&G Corporate Bond
  • iShares Core Corporate Bond ETF
  • Invesco Global Corporate Bond
  • Legal & General Investment Management Sterling Corporate Bond.

As with the previous list, this is not a comprehensive list, and it's not a recommendation. It's important to remember that past performance is not a guarantee of future results, and that the ideal investment strategy depends on your individual financial situation, goals, and risk tolerance. Before making any investment decisions, it's important to do your own research and consult with a financial advisor.

 

So, it can't offer me advice, the funds are not recommendations and I should do my own research and consult with a financial adviser before making any decisions. I think the role of IFAs are safe for now.

Yet, while the sort of list of funds it produces can already be found on the websites of many platforms, it may, for some, mark a useful starting point for their research.

Am I going to use any of the fund picks it suggested? Probably not, but it is certainly food for thought.

Jonathan Stapleton is editor of Professional Pensions

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