3 Ways AI Is Quietly Transforming Retirement Planning — and What It Means for Your Money

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Though we’re not quite there yet, AI has already transformed many areas of daily life — from how we access information to how we plan for retirement.For You: Here’s Why You Might Want To Invest Your Retirement Savings in a Roth 401(k)Learn About: 3 Advanced Investing Moves Experts Use to Minimize Taxes and Help Boost ReturnsWorking on retirement planning with a professional financial advisor who is familiar with your situation and goals is always best. However, new AI-powered tools can supplement that guidance by helping you better define your objectives and gain insights into best practices.To learn more about how AI is transforming retirement planning — and how it can impact your nest egg — GOBankingRates spoke with Vasant Dhar, professor of data science at the Leonard N. Stern School of Business at New York University and host of the “Brave New World” podcast. As a pioneer in AI, Dhar helped bring machine learning to Wall Street in the early 1990s. His book, “Thinking With Machines: The Brave New World of AI,” will be published this year.Unsurprisingly, Dhar had detailed insights into what people preparing for retirement today can expect from AI.Though AI can’t match the human touch of sitting across from an advisor, Dhar says AI-powered financial planning tools like robo-advisors can offer a degree of personalization.Using a robo-advisor, you’ll likely fill out an online questionnaire that touches on a few key areas:Financial goalsRisk toleranceTime horizonExternal financial dataPersonal preferencesOnce AI gathers this information, algorithms can generate suggestions for retirement plans or even manage a portfolio. Of course, these surveys can be superficial, and robo-advisors may offer limited suggestions without considering complex situations — or human emotions.Still, Dhar believes working with AI tools can help clarify your retirement goals and available resources.“Such tools can personalize retirement planning in several ways. They can help you clarify your objectives, which is one of the hardest problems in retirement planning,” he said.Read Next: I Help People Retire Every Day — Here’s the Most Common Retirement Mistake People MakeFrom his work bringing AI to Wall Street, Dhar has seen how it has changed portfolio optimization, tax strategies and risk management in professional investing.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,780.25 -8.50 (-0.13%)Dow Futures46,868.00 -90.00 (-0.19%)Nasdaq Futures25,158.00 -26.75 (-0.11%)Russell 2000 Futures2,495.30 -5.70 (-0.23%)VIX16.37 -0.28 (-1.68%)Gold3,987.10 +10.80 (+0.27%)PortfolioSign in to access your portfolioSign inTop gainersORBS Eightco Holdings Inc. 11.07 +2.83 (+34.34%)AMD Advanced Micro Devices, Inc. 203.71 +39.04 (+23.71%)SANM Sanmina Corporation 140.00 +25.92 (+22.72%)MFH Mercurity Fintech Holding Inc. 35.79 +6.38 (+21.69%)AAOI Applied Optoelectronics, Inc. 33.79 +5.86 (+20.98%)Top losersAPP AppLovin Corporation 587.00 -95.76 (-14.03%)CVCO Cavco Industries, Inc. 498.60 -71.83 (-12.59%)QUBT Quantum Computing Inc. 22.16 -2.46 (-9.99%)SKY Champion Homes, Inc. 69.50 -6.85 (-8.97%)PSIX Power Solutions International, Inc. 84.58 -7.70 (-8.34%)Most activePLUG Plug Power Inc. 4.1300 +0.3299 (+8.68%)OPEN Opendoor Technologies Inc. 9.28 +1.17 (+14.43%)AMD Advanced Micro Devices, Inc. 203.71 +39.04 (+23.71%)NVDA NVIDIA Corporation 185.54 -2.08 (-1.11%)ACHR Archer Aviation Inc. 13.64 +2.07 (+17.89%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersAMD Advanced Micro Devices, Inc. 203.71 +39.04 (+23.71%)APP AppLovin Corporation 587.00 -95.76 (-14.03%)TMQ Trilogy Metals Inc. 2.0900 +0.0100 (+0.48%)FIG Figma, Inc. 56.96 +3.92 (+7.39%)VZ Verizon Communications Inc. 41.44 -2.23 (-5.11%)Top economic events