"AI can democratize sophisticated planning and reduce the need for a high-paid planner. Investors at any stage of their career can use AI for scenario modeling, identify savings gaps, tax optimization, Roth conversions, and "what-if" questions like, "What if I retire at 55 versus 65?" It can free them from busywork, allowing them to spend more time talking to clients about their retirement needs. However, they warn that using it on your own can be risky."
"'Clients get really emotional about their money during volatile markets, and emotions often lead them to making bad decisions,' Richard DellaRusso, wealth management managing director at UBS, told Axios. 'We do a lot of handholding.' AI is particularly unsuited for handling complex life events like divorce, inheritance or emotional questions about money."
AI is reshaping hiring and workforce strategies across companies, increasing gig and temporary work that limits retirement savings access and reduces future Social Security benefits. Automation and chatbots are replacing some tasks that previously funded retirement accounts, creating turbulence for affected workers. A divide is emerging between workers who passively rely on AI and those who actively use it to amplify productivity; active users may see improved retirement prospects. Heavy concentration in AI stocks can expose 401(k)s to market corrections that threaten retirement savings. AI can also democratize complex retirement planning, but models remain prone to errors, bias, and struggle with emotional or complex life events.
Read at Axios
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