Retirement is one of those unavoidable stages of life marking the end of our careers we have built over the years by constant hard work and gaining new skills. Assignments, meetings, deadlines, etc soon get replaced by pursuing new hobbies, holidays, spending more quality time with friends and family. While some people seek a relaxed and tension-free life post-retirement, some get concerned about the loss of a steady income source. On top of all, if you don’t prepare yourself financially, then retirement can be pretty depressing for you and your loved ones.
Retirement is the stage when income drops and expenditure rise. Therefore, financial planning is needed to lead a financially independent life post-retirement. Financial planning merely means to save money for the future.
We all know that technology has a way of transforming much in the world and that incorporates retirement investing or planning.
The stereotype of older Americans gazing blankly at advanced technology baffled at how to utilize modern devices turns out to be more outdated by the day. Retries increasingly utilize technologies like the web and smartphone to learn, shop, and remain in touch with family and friends. While individuals can avail the benefits of these innovations in retirement, technology will even play an imperative role to grow the retirement savings of today’s employees– long before they hit their golden years.
While lots of people failed to set aside the money required for a secure retirement once they impede working, there is a necessity for a coordinated effort from the policymakers, financial services industry, and other stakeholders in order to enhance access to easy, simple means to save in order to live more restfully in retirement.
Technology and Retirement Planning
Technology is already reshaping how people do retirement planning, with innovations in data analysis and automation leading the way.
Last year, Georgetown University Center for Retirement Initiatives assembled a group of industry leaders, stakeholders, and policymakers in order to scrutinize how technology is transforming the retirement investing landscape.
Many 401(k) retirement savings plans for workers today come standard with auto-enrollment, automatic payroll deductions, and “set it & forget it” target deal funds. People increasingly take advantage of mobile applications in order to monitor their investments. Also, they use online tools or programs to simplify their financial planning and budgeting.
Each and every of these innovation increase contribution by making it straightforward and easier to save for retirement. So, technology demystifies retirement savings and simplifies the procedure, which makes savings quite easier.
Yet, regardless of all the promise technology holds, people still have some wariness of the many tools and platforms now accessible to them.
Threats That Comes with Technology
With stories of hackers compromising personal info from one firm to another, cybersecurity rises to the lead of the conversation. Therefore, the financial industry has to be prepared in order to reassure people that their personal information is safe.
Well, hackers are not the only threat that people witness to their personal info. As online services fall under scrutiny for the unofficial collection and misutilization of user data, consumer concerns related to privacy grow.
One research found that 49 percent of people in America fear to have their financial information shared with others if they utilize technology-driven apps for financial planning.
In order to maximize the advantage of advanced technology in retirement planning and savings, people must feel comfortable sharing information with providers who can utilize that info responsibly in order to make better suggestions for investment and savings options.
The good news is that millennials have already shown a willingness as compared to their parents to enable online services or tools to hold their personal and financial info. It embodies a hopeful sign for the retirement innovation future.
One study found that 73 percent of people age 18-34 are ready to purchase financial products from technology-driven firms, as compared to 42 percent of those 55 or above.
Technologies That Can Help
Machine learning, artificial intelligence, and other Big Data uses can help enhance investment returns and enables retries to have more money accessible to endure a desires quality of life after leaving the workforce.
Currently, more-sophisticated data analysis enables a new personalization level. Considering the financial realities of information and individuals about their life goals, advanced technology can foster greater engagement in retirement planning whilst simplifying the choices to enhance decision-making.
Online education tools, planning tools, and others allow employers to deliver better support and advice to their employees who often can’t afford and might not like to use financial planners. It implies more workers get access to better info.
With at least one-third of employees saying they haven’t measured how much cash they’ll need for their retirement; it is an urgent need. Consumers desire more access to advanced technological solutions to their finance challenges. Some 85 percent have an interest in online finance tools, in accordance with one study and they want their employers to assist in this regard.
It used to be that only the most-organized people would invest in software in order to track personal expenditure and develop family budgets. It demanded lots of preparation and manual data entry. Currently, more people use online services and tools from their banks and personal finance sites to better comprehend how they spend their money every month or for credit repair. The truth is that people want to be well-prepared for their retirement. They comprehend that the retirement landscape has changed and it now demands their active contribution and savings – it isn’t easy at all. Today, people are ready to make tough decisions and they are ready to transform their current lifestyle just to lead a better lifestyle in retirement. They merely need to have the knowledge, info, tools in order to make the decisions to achieve this outcome.
Last Few Words:
Though technology alone won’t address and solve people’s retirement savings crisis, it can indeed play a role in enhancing the outcomes for lots of retirees. Concerns related to privacy and security must be addressed and resolved and innovative solutions will enhance contribution, boost engagement, savings, and enhance long-term financial steadiness in retirement.