How AI Will Impact Your Workplace Retirement Plan

An older man checks his AI retirement plan on his phone

(Image credit: Getty Images)

Artificial intelligence (AI) is still in its early days, but it is going to change lives in ways we cannot imagine — and some of those changes could directly affect the way you plan and save for retirement.

"AI is already being integrated into retirement platforms," explained Arjun Bali, a senior data scientist at Rocket Mortgage. "Among the most notable is the use of robo-advisors dynamically managing portfolios depending on personal risk profiles, age, income, and retirement objectives. Personalized nudging systems also use behavioral data to recommend the best time to rebalance portfolios, optimal asset allocations, or increases in contribution rates."

This technology is still developing, though, and it is still being incorporated in new ways — including in workplace plans. In fact, MetLife's 2025 Enduring Retirement Model Study revealed multiple ways AI could change the landscape of employer-provided retirement benefits to help workers build a more secure future.

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How AI could impact your workplace retirement plan

According to MetLife's research, "plan sponsors believe artificial intelligence has the potential to significantly impact retirement benefits for plan sponsors and plan participants alike."

Specifically, plan sponsors believe artificial intelligence technology will enable them to:

Use predictive analytics to estimate participation levels in workplace plans.
Estimate the future performance of workplace plans.
Summarize large volumes of plan information.
Automate complicated plan management tasks.
Optimize the process of deciding which benefits to offer.

By taking these tasks off the to-do lists of plan administrators, AI could incentivize more companies to offer workplace retirement plans by reducing the cost burden. It could also help employers provide plans with lower fees that better meet workers' needs.

Changes for plan participants

Employees will also feel the impact of AI more directly as artificial intelligence enables employers to incorporate new features and tools in retirement savings plans. Specifically:

52% of plan sponsors believe AI will help workers select investment options based on their specific goals.
49% say AI can help workers develop customized retirement strategies.
48% believe AI will assist retirees in choosing retirement income options based on their needs.
43% believe AI will help employees make decisions about benefit distributions.

Faisal Hoque, a technologist and author of Transcend: Unlocking Humanity in the Age of AI says some employers have begun to deploy these features, although there's still significant potential for growth.

"In many 401(k) plans today, AI tools personalize savings recommendations based on each person's income, goals, and risk tolerance — making it easier for people to make better financial decisions," he explained. "Over time, these tools will get even smarter, automatically adjusting contributions and investments to help people stay on track."

How AI could change the retirement planning landscape

These changes ushered in by AI could profoundly reshape how workers interact with their plans, which could have a major impact on retirement preparedness.

"The promise of artificial intelligence is in its capacity to reduce complexity," Bali said. "For the typical participant who might lack the time or financial knowledge to actively control their plan, AI offers timely, data-driven, individualized direction. Predictive analytics can model retirement results under several circumstances, and natural language chatbots can simplify investment choices into plain English. This enables people to be more confident and wiser in their choices."

Bali believes this could result in less inertia, higher plan participation rates, and better long-term outcomes for participants — especially for those most in need of help, including younger employees and underprivileged employees.

Experts from the World Economic Forum (WEF) also believe AI could be a solution to retirement challenges created by increased longevity. "Covering basic expenses [for more years] could require people to work longer, save and invest more aggressively, or adjust their standards of living. But artificial intelligence may offer a remedy, potentially bolstering pension plans and social security in pursuit of better retirement outcomes," a WEF article said.

Consumers still need to be aware of risks

With 60% of retirement plan participants reporting they're overwhelmed by plan information and 77% indicating they're eager for more professional help in decision-making, demand for these AI tools is likely to be high.

"These AI tools can simplify complex financial decisions, offer real-time insights, and personalize recommendations in a way that many people wouldn't get otherwise. That kind of support can be a game changer, especially for workers who don't have access to financial advisors," Hoque said.

However, Hoque warned that while AI tools may become effective sources of aid, they'll live up to that potential only if designed responsibly.

"Technology is only as good as the intention and ethics behind it," Hoque said. "If these tools are built with transparency, fairness, and human well-being in mind, they can absolutely help people make smarter, more informed choices about their retirement. The key is to make sure AI is used to empower, not overwhelm or manipulate."

Some specific risks that Hoque said to be mindful of include:

Over-reliance, or placing too much trust in algorithms without a full understanding of how decisions are being made.
Bias that's baked into the data that causes AI tools to make recommendations that don't serve everyone equally.
AI tools that end up prioritizing profits or efficiency over what's actually best for individuals.

Bali also cited many of the same risks, and added data privacy and security to the list of concerns as well, commenting, "retirement plans include highly private financial data. Any violation or misuse of that information could undermine confidence in the system." Make sure to protect your privacy while using AI.

However, despite sharing many of the same concerns, both Hoque and Bali believe the careful design of AI tools can mitigate these risks. However, at the same time, both made clear that machines will augment human-decision making, but that there's ultimately no substitute for it.

"While AI can be a powerful guide, users should always stay informed and ask questions," Hogue said. "Remember, no algorithm can fully replace human judgment when it comes to your financial future."

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Christy Bieber is an experienced personal finance and legal writer who has been writing since 2008. She has been published by Forbes, CNN, WSJ Buyside, Motley Fool, and many other online sites. She has a JD from UCLA and a degree in English, Media, and Communications from the University of Rochester.