Technology continues to advance on an almost daily occurrence, and the move to digital has been something that has been gaining momentum for some time. During the past year, there has been a significant change in the way pension schemes are run, in particular a shift to handling them online.
Ranging from interactive portals that can provide control over funds, to modelling tools that offers a clear insight into potential income streams, modern pension funds have access to an overwhelming amount of technology at their fingertips. This increasing amount is incredibly beneficial to employees, as they can harness the technology available to gain a more flexible and personalised service for their pension fund.
As technology shows no signs of slowing down anytime soon, it is important to understand the impact it has had on modern pension funds so far. The reason being is that it could indicate how technology can further impact modern pension funds in the years to come.
Artificial Intelligence Influence
An increasing number of businesses will have some form of artificial intelligence implemented into their firm’s daily operations to some degree. For instance, some companies have an artificial intelligence-powered chatbot that communicates with visitors to their website, providing them with guidance on where they can find further information to help answer their queries.
Whilst most industries that implement an artificial intelligence-powered chatbot are predominantly marketing businesses, or companies that have a specific product or service that they sell, the pension industry also benefits greatly from artificial intelligence.
Although many would not put the two together, the pension industry is also seeing the benefits of incorporating artificial intelligence into how it operates. Many studies show the potential artificial intelligence has in transforming the pension industry, highlighting how qualities such as an artificial intelligence-powered chatbot can encourage participant engagement. This makes individuals more likely to engage with their pensions, providing them with options and advice on investment strategies to help them make more informed decisions.
Interacting with an artificial intelligence-powered chatbot can help employees to understand their goals, their current attitude to risk, and how much they have saved. In addition to this, integrating artificial intelligence into the pension industry can offer employees various approaches that could make financial advice more accessible. This is something that will be incredibly beneficial for those with smaller pension pots.
Putting Employees In Control
Many employers will provide information regarding pensions on their employee benefits portal. This makes the information more accessible to employees to help drive awareness and encourage them to take action about their situation. However, portals that allow employees to interact with their pension agreements compared to ones that just allows them to read what is included, often achieve the best results.
For instance, allowing employees the ability to conduct small changes such as updating their telephone number or changing the address can boost their engagement. In addition to this, offering them the flexibility to tailor their benefits to their circumstances is another great way to enable them to feel more in control over their pension fund.
Strong Focus On Data and Analytics
It is hard to deny the impact technology has had on virtually all industries. With the pension industry, retirement income modelling tools have advanced greatly in recent years. Some of the current ones available will allow users to add information regarding other incomes they can expect to receive. This includes savings, state pension or a rental property. Certain providers also offer tools and calculators to allow their members to visualise what their lifestyle would look like when they have retired.
Looking ahead, there are predictions in place that suggest that we will have greater transparency and easier access to information due to pension dashboards. The way technology is shaping modern pension funds today, indicates that in the future there will possibly be a more common simplified benefit statement. This simplified statement will help to avoid, or at least reduce, any confusion as employees will be able to see all their pensions together for the first time online, or via an app on their phone or tablet.
The future of modern pension funds and their integration of technology is certainly exciting. As the demand for digital services continues to increase, the variety of innovative technology options becoming available creates the impression of an exciting future. When effectively applied to modern pension funds, it will be incredibly beneficial for pension scheme members looking to make the most out of their savings for their pension. This could be through creating better experiences when interacting with their pension scheme or due to the enhanced control ensuring they can safeguard their retirement income. Regardless of the reason, the impact technology has had on modern pension funds so far is impressive, which just further adds to the excitement of what lies ahead for this unique industry.