In a recent PLANSPONSOR article titled How Close Are Plan Sponsors to Using AI for Plan Personalization?, HUB RPW’s Adam Sokolic and Matt Escalante shared their perspectives on how artificial intelligence (AI) is currently being used and its future potential for personalization in retirement planning.
While artificial intelligence is all the buzz these days, many companies are still exploring how to integrate the technology into their operations in a practical and meaningful way. In the retirement planning industry specifically, recent research has shown plan sponsors are cautiously optimistic about adopting new AI tools.
As the article noted, “A July survey by Escalent of more than 1,300 plan sponsors found that two-thirds of those managing at least $100 million in assets are optimistic about using AI-driven virtual assistants to answer common retirement questions. Many also see potential for AI to deliver more personalized retirement planning experiences for employees.”
The article showcases HUB as an example of a company that has already begun exploring this new frontier through our partnership with TIFIN @Work’s AI platform, announced in May of this year. To further our firm’s commitment to providing employers and employees solutions that improve their financial well-being, we integrated TIFIN @Work’s AI tools into FinPath by HUB – our financial wellness platform.
With the goal of elevating participant engagement, we leverage these tools to deliver AI–powered financial guidance to plan participants, route participants to HUB’s financial coaches, and drive personalized actionable insights for a seamless experience that builds financial confidence.
Matt Escalante, Senior Vice President & Head of FinPath by HUB, explains how the use of AI-powered personalization can enhance financial wellness services and benefit participants:
“The goal is not just efficiency, it’s about having relevance in workers’ retirement plans by helping employees during critical life events, by helping them find ways to save, or to find avenues for paying down debt.
If you’re spending $12 everyday commuting, but you have a commuter benefit from your employer, we can detect that using AI and suggest considering that benefit and apply savings to your debt pay-down or savings strategy.”
– Matt Escalante, Senior Vice President & Head of FinPath by HUB
Addressing and tailoring strategies to individual needs or circumstances, such as a commuting expense, is just one example of how AI can be activated to personalize retirement savings.
While there are many opportunities for AI-powered solutions in retirement planning and wealth management, the article emphasizes that AI is not a catch-all solution. Even in today’s modern, high-tech world, the role of a human financial advisor cannot be understated.
The theory of behavioral finance tells us that when it comes to money, especially in periods of market volatility, people can be strongly influenced by their emotions and susceptible to making rash decisions that can be damaging to their financial portfolios in the long-term. In these situations, the role of an objective human financial advisor is essential for protecting investors.
Ultimately, experts agree: AI’s role in retirement planning should enhance, not replace, human financial advisors, and due diligence should be done to ensure any new AI tool clearly adds value for participants prior to integrating it into the plan.
HUB RPW’s retirement professionals are here to give you the human perspective and guidance you, your organization and your workforce need to pursue successful retirement outcomes. Find a HUB Advisor or Contact Us today to begin your journey to a secure financial future.
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