Using artificial intelligence to power the retirement savings plan of the future

Nov 7, 2019 | Member Blog, News

The Invesco Global Thought Management Leadership Team, Invesco Asset Management Limited and Invesco Fund Managers Limited

Using artificial intelligence to power the retirement savings plan of the future

Artificial intelligence (AI) now permeates our daily lives, from personalised online shopping algorithms to crowd-sourced navigation assistance. It is all around us, making our daily customer experiences more personalised and our lives a bit less frustrating, and its proven value is now being applied to employer-based retirement savings programs on a global scale.

AI is increasingly influencing the structure and delivery of retirement savings plans by providing plan sponsors and trustees with better tools and information for monitoring portfolio managers and giving plan participants a richer and more customised user experience.

While AI faces many of the same adoption hurdles that other revolutionary technologies have come up against, its transformative properties in other industries leave little question that it will play an increasingly significant role in retirement savings programs around the world over the coming years.

Written for trustees, plan sponsors and other responsible parties associated with the oversight of retirement savings plans, this whitepaper from Invesco’s Global Thought Leadership team shows how AI can be used to improve plan design, increase participant engagement and enhance retirement outcomes.

Including case studies of how AI is already being applied by pension schemes around the world to combat these issues, Invesco’s study clearly identifies three levels of personalisation, dictated by the quality of data feeding-in to AI.

Then, the possibilities of each of these levels of AI personalisation are shown against four identified ‘building blocks’ of retirement plans – Plan design, Participant engagement, Plan governance and Investment strategy – to show you what can be feasibly achieved within each.

Finally, we’ve outlined ‘Five Steps to an AI-enabled Retirement Savings Plan’ to serve as a strong starting point for addressing how and where plan sponsors and trustees can use AI to better fulfil their fiduciary responsibilities to plan participants.

This paper aims to:

  1. Inform about technology advances within the field of AI, and how they can be applied to improve retirement savings plan design and participant engagement
  2. Explain how incorporating AI elements into retirement plans, can improve the participant experience, bringing a higher level of customization and overall satisfaction
  3. Offer guidance on navigating potential enhancements to retirement savings plans harnessing the power of AI

Download the full whitepaper now to hear Invesco’s thoughts on Five steps to an AI-enabled Retirement Savings Plan


Investment risks

The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Important information

Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.

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