3 AI Retirement Strategies Gen Z is Using to Save Millions
Written by
Josephine Nesbit
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Younger workers say they’re going to retire years earlier than other generations. How? Using AI tools to help with financial planning.
According to the 2023 401(k) Participant Study from financial services company Charles Shwab, Gen Z workers have high expectations. Survey participants said they expect to retire at age 61, while baby boomers expect to retire at 68, Gen X at 65 and millennials at 64.
Although Gen Z expects to retire much earlier than other generations, 99% of Gen Z respondents claimed they face obstacles to saving for a comfortable retirement. The most common obstacles Gen Z workers reported were inflation (54%), keeping up with expenses (36%), unexpected expenses (31%) and helping aging parents financially (30%).
Sixty-two percent of Gen Z workers admitted that their financial situation might require professional advice, and 75% said they were comfortable using AI to help them with financial planning.
AI is still in its early stages, but here are some strategies younger generations are using to save money for retirement.
Portfolio Diversification
According to the Society of Actuaries, “AI-driven robo-advisers” can analyze your financial goals, risk tolerance and investment horizon to create a well-diversified portfolio. These algorithms can also continuously monitor market conditions and make adjustments to asset allocation, which could potentially maximize returns while managing risk.
Savings Strategies
“Imagine AI as a smart financial assistant for your retirement savings,” Claire Farwell, a top AI education expert, wrote in an article on LinkedIn. “It looks at your money, what you spend and your future dreams, then finds the best way to grow your savings, picking smart investments and saving you tax money.”
According to the article, AI can also help you budget, track and optimize expenses. You can also use it to find the best deals, discounts and rewards for purchases.
Retirement Education
AI can also answer common questions about retirement planning advice and market changes, the Society of Actuaries stated. AI can put together personalized retirement education materials and resources to help people make informed decisions about their retirement planning.
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