How Technology Is Reshaping the Way Americans Prepare for Retirement

Technology is changing how Americans prepare for retirement, led by advancements in automation and data analysis, reports Forbes . Last year, the Georgetown University Center for Retirement Initiatives brought together industry leaders, policymakers, and stakeholders to discuss how technology is transforming retirement savings. Many 401(k) retirement savings plans for employees now feature standard auto-enrollment and automatic payroll deductions, as well as "set it and forget it" target date funds, while individuals increasingly use mobile apps to track their investments and online tools to enable financial planning and budgeting. These various tools boost participation by making it easier to save and invest for retirement. To reap the maximum benefits of technology in retirement savings, Americans must be comfortable sharing details with providers who can use that data responsibly to improve recommendations for savings and investment options. According to Bain & Co., 73 percent of individuals age 18 to 34 are willing to buy financial products from technology companies, versus 42 percent of those 55 and older. Meanwhile, artificial intelligence and machine learning can help improve investment yields, and let retirees have more cash available to sustain a desired quality of life after retirement.