The retirement industry worldwide is experiencing a notable shift, spurred on by changing customer expectations, tech innovations, and evolving regulatory environments. This change underscores the growing necessity to ensure people are financially prepared in an increasingly intricate retirement world. Recently, partnering with Deloitte, we looked into the retirement systems in the U.S., the U.K. and Ireland, and Australia.
In the U.S. and the U.K., a major influence on the industry is the move from defined benefit plans to defined contribution systems, a transition that Australia has already completed. This shift transfers more responsibility to individuals, who often need to make crucial financial decisions with limited guidance. Today, people are looking for more than just basic retirement savings options; they are demanding financial service providers to deliver comprehensive solutions that blend wealth management with retirement planning. This trend highlights the importance of financial wellness, considering a client’s entire financial situation to achieve security, flexibility, and peace of mind. As a result, providers must break down traditional silos and adopt a more integrated, client-focused strategy to their offerings, with customer expectations for smooth digital experiences reshaping how providers engage with them.
To fulfill these expectations, retirement providers are leaning on the latest technology. Companies are revamping their core infrastructure to provide versatile, multi-channel solutions, whether through self-service platforms, remote advisors, or in-person meetings. These efforts not only boost client engagement but also enhance operational efficiencies through automation and outsourcing. Technologies like artificial intelligence, data analytics, and digital platforms empower providers to craft personalized retirement journeys while remaining scalable and cost-efficient. Sophisticated segmentation strategies, informed by comprehensive financial data, enable firms to provide customized products and services to meet the diverse needs of different client demographics, ensuring that individuals in all retirement phases receive the necessary support. However, maintaining the necessary tech in-house may not be practical for many firms. Outsourcing is a strategic way to tap into technology and accelerate transformation and modernization. Swiftly achieving these goals aids firms in meeting customer expectations and staying competitive.
As reliance on data grows, so does the need for strong cybersecurity measures and regulatory compliance. Providers face the dual challenge of leveraging data for innovation while protecting client privacy and adhering to changing regulations. Investments in modernizing data infrastructure and developing reusable data products are vital elements of the industry’s tech roadmap. Meanwhile, regulatory changes remain a dynamic challenge, requiring providers to stay agile. Modern technology and flexible service models are crucial for efficiently navigating these changes and maintaining compliance without excessive costs.
Combining wealth and retirement solutions opens up exciting opportunities for growth. By integrating these services, providers can deliver holistic financial support, strengthen client relationships, and unlock new revenue streams. The future of the retirement industry depends on balancing personalization with scalability, innovation with security, and client needs with regulatory demands. Providers focusing on these key capabilities will not only meet today’s savers’ expectations but also establish themselves as frontrunners in a changing marketplace.
Don’t miss our exclusive webinar where top executives from SS&C and Deloitte will delve into the crucial challenges facing retirement providers today. We’ll discuss major trends, such as the shift from defined benefit to defined contribution plans, the rising demand for holistic financial wellness, and the merging of wealth and retirement solutions. Plus, we’ll share insights from our latest whitepaper developed in collaboration with Deloitte.
