A one-size-fits-all approach to retirement is no longer appropriate. The concept of ‘retirement’, as viewed through the opinions of those saving towards it, has a broad range of meanings. Traditional ‘retirement’ is over, with few now seeing it as a singular event. Savers have different concerns, and require solutions that are different to both those of the past and those offered by the majority of the market at present.
Most savers have financial concerns when they think about retirement. Across each market there is a gap between retirement savers’ overall level of knowledge, and the wish to control their retirement savings directly, with many expressing the desire to ‘go it alone’ in managing retirement funds and spending. It is unfeasible to expect all savers to pay for personal advice. Therefore guided solutions, offering control and flexibility, and assisting savers to make decisions to achieve the greatest outcomes, are a necessity.
Technology, or the outcomes of good technological solutions, offer the answer. Savers expect to access their savings online, just as they do their shopping and their banking, and for that technology to help them towards their goals.
Financial services organisations have a unique opportunity – a huge market that has changed quite rapidly, with savers taking a new interest in part fueled by the COVID-19 pandemic. The retirement savings industry can use technology to meet this opportunity – to bridge the ‘advice gap’, to offer one-to-one relationships that benefit both savers’ financial outcomes and their organisations’ financial outcomes, and to match their own propositions to the unmet needs of the market.