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Robo-advice and AI vital to boosting millennial pensions and ‘avoiding catastrophe’




By Daniel Lanyon on 22nd June 2017

https://goo.gl/FyMFex

Evalue’s Mark Grimes reveals how disruptive wealth management technology could be key to nudging younger investors into better pension provision.

 

 

Recent polling by YouGov revealed some shocking trends. Millennials, or those born between the mid 1980s and 2000, are suffering from a distinct lack of engagement when it comes to pension planning.

 

Mark Grimes, product director at EValue, says the financial services industry needs to take advantage of the developments in robo-advice and AI to make financial planning more accessible to millennials, a key priority to avoid the peril of a generational gap for those many expect to live on a average well into their nineties.

 

“A lack of millennial engagement in pensions could be catastrophic. Whilst millennials have time on their side, they need to take advantage of the tools at their disposal to help them map out savings goals and provide for their desired retirement lifestyle.”

 

“The financial services industry must take advantage of the developments in robo-advice and AI to make financial planning, and advice, much more accessible for millennials.”

 

“Providing easy to use tools and jargon free information will ensure that everyone is aware of their options, allowing consumers to look beyond ISAs to more sustainable long-term savings such as pensions.”

 

Further data from the EValue’s Pension Freedoms Index, based on 52,304 respondents, suggest millennials are far more likely to seek out safe havens when retirement planning, with 47 per cent opting for a pensions option which provides a guaranteed income in retirement.

 

In contrast only 28 per cent of baby boomers are seeking a guaranteed retirement income and 55 per cent are heading for flexible income – this could be that millennials worry about the assets they’ll have by retirement whereas those baby boomers who are already approaching retirement are able to rely on the security of property and are able to explore more flexible sources of income.

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