Critical Tech Trends Are Transforming the Retirement System

Critical Tech Trends Are Transforming the Retirement System

Behavioral science insights and financial technology innovations have turned retirement finance into a multi-trillion-dollar engine of capital formation.

As new technologies reshape our understanding of retirement options and create transformative new opportunities, we’re entering a new era of retirement innovation. Today’s workplace retirement plans provide workers of all ages with insights into their future that have never before been available. Plans use machine learning to model essential information about individual workers’ finances and leverage artificial intelligence to transform insights into recommendations for action.

An original survey conducted by the Harris Poll for Empower Retirement found that more than 70% of respondents desire financial suggestions from a single source that take into account their total financial picture across all accounts. Survey responses suggest an imminent future in which it is standard practice for workplace retirement plans to embrace highly personalized financial technology solutions that take a holistic view of plan participants’ finances.

 

Key findings

  • As retirement plans begin to integrate other aspects of wealth such as healthcare and student loans, the fin-tech industry is providing solutions.
  • The majority of workers want a retirement planning solution that takes into account their entire financial picture.
  • Millennials and married people have a particularly strong desire for account aggregation.

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