Walk into any traditional pension office, and you’ll feel it. The weight of outdated systems, the confusing forms, and the silent anxiety of participants wondering if they’ve saved enough. Now walk into the sleek office of a retirement-tech startup, and the contrast is striking intuitive dashboards, automated advice, and real-time interactions that feel…human!
Somewhere between those two worlds, a quiet revolution is taking shape, one that could decide whether millions of Americans enjoy a dignified retirement or work far longer than they ever expected. At the heart of this shift? Artificial Intelligence (AI), supercharged by a new wave of FinTech innovators who are turning retirement planning from a burden into a benefit.
The U.S. retirement and pension system, worth more than $10 trillion, is finally waking up too. And while FinTech(s) are redesigning user experience, AI-based systems are laying the foundation to scale empathy, intelligence, and efficiency across entire ecosystem.
The problem: A system built for a different era
For all its complexity, America’s retirement system still hasn’t solved the basics.
Yes, we’ve seen product innovations like pooled employer plans and guaranteed income solutions. But engagement is still low, trust is fragile, and the system feels too complicated for the average saver to navigate.
The psychological hurdle is real too. Many people feel disconnected from their “future self,” making it hard to plan long-term. According to the Schroders 2024 US Retirement Survey, nearly 6 in 10 Americans believe they won’t meet their retirement goals.
Auto-enrollment has helped push up participation in 401(k) plans to 83%. But beyond that, people often check out. Because planning for retirement shouldn’t feel like decoding legalese or worrying if one wrong move means a lifetime of regrets.
This is exactly where AI shines: not just as a tool for automation, but as a trusted guide to simplify complexity and empower real decisions.
AI: From buzzword to backbone
The retirement industry may not be known for speed, but it’s sitting on an AI goldmine.
According to Everest Group, the U.S. retirement sector could unlock $16–20.5 billion in cost savings, just by applying AI to everything from compliance and reporting to customer service and investment planning.
AI is doing what financial advisors wish they could do at scale:
- Translate complex terms into plain English
- Offer personalized retirement advice in real time
- Automate repetitive tasks with precision
- Make every participant feel seen and supported
- Large Language Models (LLMs) like ChatGPT are turning AI into a retirement concierge, one that never sleeps, never forgets, and never judges.
The FinTech frontlines: Rebuilding retirement from scratch
While AI powers the backend, FinTech startups are rewriting the retirement script on the front end. And they’re not just building apps; they’re building infrastructure for the future.
Here’s what that looks like:
🔹 401GO is helping small businesses offer retirement plans without drowning in admin
🔹 Human Interest killed transaction fees, making 401(k)s affordable for everyone
🔹 Vestwell embedded retirement savings into payroll systems for seamless access
🔹 Capitalize is rescuing lost 401(k)s and helping people reclaim their forgotten savings
And they’re not alone.
More standouts in the new retirement stack:
- Ubiquity Retirement and Savings offers predictable, flat-fee plans tailored to micro-businesses
- SaveDay combines retirement with life insurance and digital wills, all in one “robo-401(k).”
- Penelope uses pooled employer plans to cut costs for small teams
- ForUsAll lets savers allocate part of their 401(k) into crypto and alternative assets—carefully capped at 5%
- Others are solving equally crucial challenges:
- Beagle finds and rolls over old 401(k)s with concierge support
- Portability Services Network automates small-balance rollovers between job switches—projected to protect $1.6 trillion in savings
- SecureSave adds emergency savings next to retirement accounts, reducing early withdrawals
- Catch is creating a benefits wallet for gig workers, bundling tax, health, and IRA savings into one mobile experience
- These innovators are more than startups; they’re bridges to financial dignity for the next generation
The business sase: A win-win for everyone
This isn’t just feel-good innovation, it’s smart business.
Midsize recordkeepers stand to gain a 2.5–5x Return on Investment (ROI) within three years through AI-powered efficiencies. From predictive analytics and compliance automation to dynamic communications and investment personalization, the payoff is both operational and experiential.
And let’s not underestimate the intangible upside: stronger trust, deeper engagement, and participant loyalty in a world where those things are rare.
Serving the underserved: A new chapter for retirement equity
Here’s where it gets truly exciting: this transformation isn’t just for the financially savvy.
In fact, the greatest impact will be felt at the bottom of the pyramid, among gig workers, part-time employees, and small business staff who’ve been locked out of traditional retirement systems for decades.
By removing high fees, reducing paperwork, and offering AI-guided, mobile-first tools, we can finally bring meaningful retirement planning to the people who need it most.
This is more than inclusion. It’s reparation for the millions who were systemically excluded from building long-term wealth.
Opportunities for providers: Now or never
For tech and service providers, the window is wide open, but it won’t stay that way for long. Our Everest Group analysts outline three clear priorities:
- Modernize the data estate
Help legacy recordkeepers transition to real-time, cloud -native platforms
- Embed Generative AI (gen AI) & Agentic AI
Deliver conversational, intelligent tools that simplify everything from plan selection to fraud alerts
- Fortify Cybersecurity and Compliance
Ensure your AI solutions don’t just comply, they inspire trust through ethical, privacy-first design
The age of intelligent retirement is here
The U.S. retirement crisis has long felt like a runaway train. But now, we have the tools and momentum to shift the tracks.
With AI and FinTech leading the way, we’re turning “set-it-and-forget-it” into personalized, dynamic wealth-building. We’re moving from exclusion to access. From paperwork to personalization. From doubt to dignity.
So, the question isn’t whether the industry will change. It’s who will lead it.
Are you ready to help build the future of retirement?
For those who step up now, with bold ideas, scalable tech, and human-first values, the payoff isn’t just market leadership. It’s a legacy.
Let’s build a retirement system that works for everyone. Because financial security shouldn’t be a luxury, it should be a promise.
If you are interested in understanding the digital maturity landscape of retirement and pension industry for North America, you can check out this viewpoint – Embracing the Next Frontier:a Blueprint for Digital Success in the US Retirement Industry.
In this viewpoint, we emphasize that retirement enterprises must modernize their technology landscapes, integrate data and intelligence, and invest in modern architectures to become future-ready digital leaders.
Everest Group has developed a framework to assess the digital maturity of the top 12 US retirement firms across the value chain. It also highlights key areas within the retirement value chain where digital maturity sets leading enterprises apart, driving significant business outcomes. It also analyzes digital maturity across value chain elements and compares different recordkeeping models
If you found this blog interesting, check out our Agentic AI: True Autonomy Or Task-based Hyperautomation? | Blog – Everest Group, which delves deeper into another topic regarding Agentic AI.
You can also check out our latest From Data to Decisions: The Future of Retirement Planning in the Age of AI viewpoint via: Everest Group Reports – View
If you have any questions or want to discuss the evolution of AI and FinTech in more depth, please contact Akshay Pawar ([email protected]) and Vigitesh Tewary ([email protected]).
