How AI is making financial advice more accessible

Only 35% of Americans have a financial plan – a surprising statistic in one of the world’s wealthiest nations. The reasons? High costs, limited access to advisors and discomfort discussing finances.

And it's not just Americans lacking sound financial advice. In a 2023 European Commission survey, 82% of respondents said they have a medium or low level of financial literacy despite 71% claiming to set financial goals. Despite striving for goals, the high cost of advice, limited access to advisers and discomfort discussing finances are creating a disconnect.

Financial planning in some parts of the world has followed a rigid formula for decades: save enough to retire at 65 and withdraw 4% annually. But as lifespans grow and retirement evolves in many countries around the world, traditional planning methods are falling short.

Traditional models don’t account for today’s realities such as longer lifespans, market volatility and shifting retirement goals. Nearly half of Americans believe it's unrealistic to expect to retire at 65 years old. And the 4% rule has proven to be antiquated, leaving retirees either underspending or running out of money too soon.

Compounding the issue, many people rely on fragmented advice – a mix of online calculators, bank recommendations and piecemeal guidance – rather than a cohesive strategy. This results in a retirement plan that doesn’t truly fit their needs or empower them to enjoy the retirement of their dreams.

The good news is that artificial intelligence (AI) and other technologies are revolutionizing financial advice, making it more adaptable and accessible for everyone. Modern financial plans need to be dynamic, adjusting to life changes like delayed retirement, unexpected healthcare costs or new passions in later years. AI-powered tools can make this possible by analysing a household’s full financial picture – from income and assets to goals and risks – to generate personalized strategies. Of course, checking AI-generated advice with a professional is also important.

For advisers, this means moving beyond static annual reviews to offer real-time, adaptive guidance that changes with life circumstances. For people without an adviser, AI-driven tools can provide self-directed planning that still accounts for complex variables. This helps to ensure financial security while enabling retirees to enjoy their later years, whether they’re traveling, starting a business, or supporting family.

More women and younger workers are interested in seeking financial guidance, yet many still lack access to quality advice. AI is helping to bridge this gap by delivering scalable, affordable solutions tailored to investors in different life stages and economic backgrounds.

These advanced, AI-powered technologies can help wealth managers deliver more personalized and proactive guidance by analysing client data, predicting future financial needs and identifying behavioural patterns. They can also automate portfolio management and streamline communication, allowing advisers to focus on more strategic, relationship-driven advice.

AI tools also help to personalize financial advice across all demographics by adapting recommendations to match each individual's unique goals, challenges and values. For younger clients, AI might suggest low-cost investment options, strategies for saving for or repaying student loans, or tools to help build credit. For middle-income families, AI can model complex life scenarios like saving for college, purchasing a home or managing healthcare costs. For women, who often face different career trajectories and longevity risks than men, AI can account for gaps in earnings or time out of the workforce. Even high-net-worth individuals stand to benefit from AI-driven tax optimization and estate planning insights.

In all of these situations, tailored retirement and wealth-building strategies can be invaluable. And so, advisers who embrace these AI-powered tools can serve a broader client base, but still provide hyper-personalized financial advice. A recent survey of 300 financial advisers showed 85% won clients due to “state-of-the-art tech”. This shows a clear connection between the use of advanced technologies and better client experiences, as advisers can provide more holistic advice.

Meanwhile, people that don’t use a financial advisor can still build robust plans through intuitive tech tools. The outcome will be a more inclusive financial system where everyone – not just the wealthy – can plan confidently for the future.

By lowering barriers to entry and offering tailored guidance to people from all walks of life, these AI-driven innovations are creating a more equitable financial landscape. From young savers to retirees, everyone now has the opportunity to build a meaningful, resilient plan –regardless of their background or starting point.

And as longer lives and evolving retirement expectations create the need for new approaches to financial planning, AI and advanced technology are helping to deliver flexible, personalized advice at scale – both through self-directed tools and adviser-led strategies.

The future of financial planning should be about more than just numbers, it should also be about adapting financial advice to real life.

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