Probably not for baby boomers, but most likely, yes, for Gen Z and millennials. Though it’s no surprise that technology continues to both create and illustrate big shifts between generations, a recent study conducted by an AI platform illustrates why younger generations in particular gravitate to AI when seeking information and guidance.
Immediacy and Accessibility
AI platform, Pearl.com, offers this description of its services: “Pearl is a professional services AI tool that combines the most advanced AI with accredited human professionals to get you the answers and resources you need all in one place. Pearl pairs intelligent AI with trusted human professionals—so you get clarity, support, and answers that go deeper.” Trust is of course especially key related to life, health and finance decisions, and according to the The AI Trust & Accountability Report from Pearl, “nearly two-thirds of Gen Z and millennials would follow AI-generated retirement advice based on their health, financial, and personal data.”
Moira Corcoran, CPA and Finance Expert at Pearl.com, notes that younger generations “may tend to put more faith in technology than the generations before them and have a proclivity for easy, on-demand solutions,” but cautions: “GenAI’s faulty advice may continue to financially stunt this generation, further pushing off their retirement, home ownership, and savings growth…The future of intelligence is not about choosing human intuition or AI precision. It’s about uniting them seamlessly.”
On LinkedIn, The Plan Sponsor University (TPSU) shares this summary of Pearl.com’s findings related to turning to AI for advice about retirement planning:
This preference for technology extends beyond convenience—41% of Americans report feeling more comfortable discussing finances with AI than with human financial advisors….The appeal is understandable. AI offers privacy for sensitive financial discussions without fear of judgment, 24/7 availability, and no appointment scheduling. For younger generations who view retirement as a distant milestone, the immediacy and accessibility of AI solutions are particularly attractive. According to the Pearl report…there is a stark generational divide in AI trust: 51% of millennials prefer AI over financial advisors, compared to only 29% of baby boomers. Similarly, while 50% of Americans would trust AI to predict their retirement timeline, 58% of boomers would reject AI retirement advice due to trust concerns. Usage patterns also correlate with income levels. Higher-income households ($100,000+) use AI approximately 10 times weekly, while those earning $45,001-$55,000 use it about 6 times per week.
Good To Know: Financial Education
The exploration of how AI can enhance retirement planning comes at an interesting time, with so many businesses recognizing the importance of offering financial education in tandem with benefits packages: when workers bring financial stress to the job, the business is impacted too. As Voya Investment Management points out, financial stress affects everyone:
- Our research shows that money problems account for 59% of employees’ stress in the workplace, which can affect their mental and physical well-being and their performance at work.
- Financial stress can cause a delayed retirement. Over half of the financially stressed employees we surveyed plan to postpone their retirement—at an average cost to an employer of $51,000 per employee. Delayed retirement can also mean delayed career trajectories for newer workers.
- Financial wellness programs help with employee retention. According to our research, workers generally view their employers as a trusted source. That creates an opportunity for sponsors to retain employees by offering support in key areas, including improving overall financial wellness and retirement income planning.
Sponsoring A Retirement Plan?
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