Karoline Gore | Industry Era

The Retirement Technology Making Financial Planning Trendy

Americans aren't doing well when it comes to saving for retirement. The majority of people close to retirement have just 12% of what they require saved, according to Bank Rate. Thankfully, technology is evolving at a rapid pace and has quickly adopted and transformed the retirement market to help encourage the nation to save as much as possible.

Better engagement

Financial planning is generally perceived as 'boring'. However, technology aimed at helping people to save for retirement is turning this notion on its head. Apps dubbed as 'financial entertainment apps' have incorporated games and prizes into their interfaces to lure people in. They also allow users to connect with friends, family, and colleagues and this lets them compare results with one another, as well as spur each other along. With 81% of Americans owning a smartphone, this technology is sure to encourage users to actively review their savings pot.

Putting money in

60% of people told a Harris poll that financially planning for retirement is stressful. But technology is alleviating this stress and helping individuals to save as much as possible. Calculators that use big data and algorithms instantly advise how much is required for a comfortable retirement. This is beneficial as there is currently a $7.7 trillion gap between how much future retirees have saved compared to the figure they'll require. This type of technology, therefore, encourages people to work past retirement age to ensure that they can financially support themselves. What's even better is that additional cash can be accessed this way as by delaying taking out Social Security benefits, a greater sum is received each month when retirement does commence.

Personalization tools

Personalization is something that the latest retirement technology tools excel at. This is crucial considering 70% of people say that they want their entire financial picture taken into consideration when saving for later life. Gone are the days of spending time and money with a financial advisor to personalize a 401(k) as technology can now assess a user's financial background and provide instant advice on the best product for them. As a result, people will be more invested and will work harder to save the cash they need for retirement than they would if they were receiving standardized advice.

Technology has started to make its mark on the retirement industry and is assisting the nation to work and save hard. By introducing fun and interactive interfaces that connect with others, smart calculation tools, and personalization options, long-term financial planning has become a trendy and addictive task.

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