From Data to Decisions: The Future of Retirement Planning in the Age of AI

The retirement and pension industry is grappling with legacy systems, shifting demographics, regulatory complexities, and gaps between product offerings and participant behaviors. This Viewpoint analyzes how AI-driven solutions can revolutionize retirement planning by personalizing participant experiences, optimizing operations, and addressing persistent industry challenges.

AI technologies, including generative AI and advanced large language models (LLMs), hold the potential to significantly enhance participant engagement and streamline operations across the value chain. By automating labor-intensive processes, personalizing investment strategies, and proactively addressing compliance requirements, AI can save the US retirement and pension industry approximately US$16-20 billion in operational costs. This study emphasizes practical approaches and key considerations to effectively and responsibly implement AI, ensuring enhanced transparency, ethicality, and regulatory alignment.