Personalized Retirement Planning in the High Tech Era
A new report from Transamerica highlights predictions of how retirement planning is set to change in the next few years, as technology continues to evolve.
The company’s “Expert Opinions on the Future of Retirement Plans” surveyed more than 50 organizations including various health, trade, research, academic, consulting, investment, and financial firms to get a big picture idea of where the industry is headed.
In a time when saving for retirement is a top consumer concern, professionals are looking to focus on evaluating the effectiveness of specific planning methods and improving financial outcomes for clients.
According to the report, experts predict that by 2017, approximately 59% of all retirement plan providers will include a personalized report and amount needed to save. 39% are expected to change the design of their retirement plans to help increase client success.
Save How Much?
Retirement is a personal issue and retirement planning should be, too. There is no “magic number” that applies to every one. Savings should be a reflection of individual lifestyle and expected retirement income. The Transamerica study found that mobile technology will likely play a large role in the future of retirement finances and help facilitate better communication with retirement plan providers.
“Industry experts expect that the demand from participants to understand their retirement forecast will combine with advances in technology to allow for increased personalization,” said Stig Nybo, president of pension sales and distribution at Transamerica Retirement Solutions in a prepared statement. “Retirement plan sponsors and advisors can expect to see a rise in innovative tools that participants need for greater control over their retirement planning.”
To attain the maximum engagement from participants, retirement professionals will take advantage of the unique opportunities that technology, especially mobile technology, offers clients.
Mobile technology allows for quicker and easier communication between clients and financial advisors, which gives the individual more control over their own retirement plan.
Experts predict that as part of this shift towards technology, 3 in 4 providers will offer mobile games to learn about retirement planning in an enjoyable and digestible manner. Despite the obvious need to plan, few people have an actual written plan and a large percentage are confused about the true cost of retirement, according to a recent survey.
With careful planning and enough time, any one can save for retirement. Establishing firm goals and an actual detailed plan will get you started saving for retirement the right way. Read more about the importance of planning for health expenses during retirement.