Rewriting Retirement: Strategic Moves Reshaping the Future of Wealth and Work

In the 1970’s Future Shock, Alvin Toffler saw a future where the traditional model of retirement, characterized by a fixed age and a predictable pension system, would undergo substantial changes. He foresaw an era when longer life expectancies and non-linear careers would require flexible, personalized planning. This would involve changes we are seeing today in career paths including continuous learning and skill development to remain relevant in a rapidly changing job market, as well as innovative financial products to ensure financial security in later life.

In The Third Wave, Toffler envisioned a future where financial services would become more decentralized and democratized, with technology enabling broader access to financial markets and services. The rise of digital platforms and the integration of artificial intelligence would lead to more personalized and efficient financial services, catering to the specific needs of individuals and businesses.

2025: A Pivotal Moment

This is a turning point. For workers in their 50’s and 60’s it’s a shock.  For workers in their 20’s, 30’s and 40’s, it is a call to action for more intentional financial awareness and planning. For executives, it’s reminder that legacy models won’t carry them through an increasing uncertain and fluid future.

Strategic Investments Shaping the Future of Retirement Planning

Enhancing the customer experience has been a strategic priority in the industry for over ten years.  Today, the shift is focused on Millennial and Gen Z investors to grow the customer base and create sticky relationships through full-service offerings.  The firms are reducing costs and democratizing financial and retirement insights, implementing AI tools and personalization.

We evaluated annual reports, publicly available strategic plans, and statements about transformation priorities to understand how, across the retirement landscape, firms are investing in integrated, forward-looking retirement platforms. Retirement is no longer just a financial milestone – it’s becoming a strategic platform.

Imagine if…

In 2030 over morning coffee, Alina’s AI advisor had already updated her phased-retirement dashboard. It reflected last night’s freelance earnings, her daughter’s caregiving schedule, and an updated housing forecast. Her collaborative advice team flagged an opportunity to delay Social Security by six months to boost lifetime returns, paired with behavioral nudges to trim monthly spending. She scanned personalized scenario models: part-time work, cross-country moves, even caregiving gigs. She was not chasing a retirement “date” or “number.” Alina was planning and living life dynamically, backed by real-time, holistic financial advice tailored to her evolving identity, not just her portfolio.

The vignette is intended to show how financial and retirement planning will feel much different in the coming years due to the investments in retirement platforms.  With the integration of AI-powered advice, firms are able to provide increased personalization and scenario-based planning guidance to customers.  Behavioral finance integration is enabling insights and “nudges” for smarter savings and longer-term thinking.  Firms are acknowledging the customer needs beyond traditional retirement planning and tailoring new customer solutions and offerings to appeal to part-time, gig, and encore workers.  This allows for life-stage planning incorporating healthcare, caregiving, housing and other factors into the analysis.

Financial advisor attrition and brain drain have become a significant issue in the industry as more advisors are departing than new advisors joining.  New Advisor compensation models, team-based models, and technology-enabled models are increasing retention and service quality.  Human and AI collaboration allows for personalized insight for the customers.

The transformation is opening pathways for customer access for career and life planning.  With this democratization of services, it has the potential to improve financial fluency and resilience.

Customer-Centric Innovation

US-based firms feel pressure from the FinTech sector and changes to customer expectations from experiencing new ways to transact outside of the regulated environment.  Stress in a system often fuels innovation and creates opportunities for growth.  Below are some examples of new customer-centric offerings that are changing the level of financial empowerment and resilience for workers.

1. Lifetime income products that offer financial education and flexibility.
2. Subscription-based planning services embedded in workplace benefits as a differentiator in a competitive talent market.
3. Cross-sector partnerships with health and housing innovators creating even more customer “stickiness” as well as potentially new workplace benefits.
4. Advanced planning tools for middle-income and mid-life households are making complexity understandable and financial planning insight accessible.
5. AI-augmented advisors who combine machine precision, personalized insight with a human touch, or not.  It would be the customer’s choice.
6. Real-time regulatory guidance delivered through planning interfaces, allowing financial advisors and customers to understand the implications of changing policy
7. Self-employed, encore and gig worker tools are giving control to individuals to manage irregular income, taxes, and savings contributions.

Consequences of Transformation

We can’t just look at the upside of transformation without understanding the potential negative consequences.  When executives understand the ripple effect of their investment decisions, including new technology, practices, and operating rules, they make better decisions.  Workers, customers, retirees, and society benefit.  The risks below are offered as a starting point and are intended to prompt the reader to think about others.

1. Erosion of trust from tools perceived as impersonal, unintelligible, or potentially offering bad insight and recommendations.  Trust in government and private sector institutions is already at an all-time low in the US.
2. Advisor talent attrition and brain-drain as experienced financial advisor professionals retire at a higher rate than new talent develops and effective tools are adopted.
3. Policy volatility can trigger client confusion or poor financial decisions, as well as suboptimal innovation investment decisions by firms.
4. Over-automation in the eagerness to reduce costs and create efficiencies may also cause the alienation of both more and less financially savvy clients.
5. Fragmented and unintended user experience across poorly integrated platforms and misaligned customer requirements and expectations.
6. Data and cyber security risks are expanding in interconnected systems with increased vulnerabilities and an expanding threat landscape.
7. New digital asset offerings like crypto funds introduce additional regulatory risk  and data security concerns.
8. Neglect of emerging worker segments like encore workers, gig workers, and part-time professionals.
9. Healthcare becomes the “new inflation” factor, causing increased Health Savings Account contributions, bridge planning, and delayed retirement to offset the increased cost of healthcare.
10. AI-generated financial disinformation is forcing firms to invest in digital literacy and misinformation guardrails.

Retirement as a Strategic Platform

The firms leading this shift recognize that simply amassing tools, services, and capabilities isn’t the foundation for the future, it’s trust. While they’re architecting retirement as a life-stage platform and holistic operating system where wealth, work, wellness, and purpose converge, consumers will have doubts about joining these platforms if they don’t trust that the system is designed with their best interests in mind.

We must ask;

• Are we designing retirement experiences for tomorrow’s real life and changing career and employment models?
• Are we stress-testing our strategies and models against disruptive policies and emerging workforce shifts?
• How are we designing platforms and models to build and sustain trust?

In a future defined by an increasing pace of change, complexity, and volatility, trust isn’t just a competitive edge – it’s the currency of relevance.