Could tech be the key to closing the retirement saving gap?

With many Americans’ retirement savings falling far short of what they really need for long-term financial security, technology could be leveraged to help close the gap, said Bobby Powell, iPipeline vice president of distribution sales.

“When it comes to education, financial literacy and connecting people to solutions that will help them out, there’s absolutely a gap there today — getting people access to the right financial products and helping them understand what those products can do for them and if they can get to their desired outcome,” Powell told InsuranceNewsNet.

A 2026 study from the National Institute on Retirement Security found retirement preparedness of working-age Americans aged 21-64, is woefully lacking. The median amount saved for retirement is only $955, as many Americans have not even begun saving yet.

To put that number in perspective, experts generally recommend having six to 11 times one’s salary in retirement savings to live comfortably.

Powell said the retirement savings gap could be partly because many people don’t begin planning for retirement until later in life.

“Retirement is a very distant thing until it’s knocking on your door. Thinking about retirement is something that people probably don’t spend a lot of time on in their 20s, and then maybe start to think minimally of it in their 30s, and then as they get beyond that, they definitely start to think about it kind of more and more,” he said.

But he believes that equipping technology in a variety of ways can help more Americans begin to prepare earlier for better financial outcomes in retirement.

“I’ve been in wealthtech and insurtech for 24 years now, and I will say that technology is rarely a hindrance. So when we’re talking about how technology can bridge the gap, technology has been able to do this for quite some time — whether it is processing business faster or easier or solving problems,” he said.

Help navigating complexity

Powell pointed out that Americans have many complexities to think about when it comes to retirement planning. For example, they must weigh what age they want to retire, how much income they need to retire comfortably, what they expect their expenses to look like and how that differs from today, whether they will need Medicare, tax planning and a host of other considerations.

“There’s a whole lot of complexities, which I think really invites the need for a good financial advisor, a good financial planner, in the process,” he said.

However, there is an equally complex challenge in getting this information to Americans.

Not only are many young Americans not even beginning to think about retirement yet, but studies also indicate millennials and Generation Z prefer to go online for financial advice rather than engage with a professional consultant.

A possible solution is for advisors to leverage technology in tandem with their industry experience to reach more people.

“Technology can get the information out there faster; it can make the experience better. I think, generationally, technology will absolutely help folks or help make financial advice easier, help make the consumption of information much easier, much more available to the masses,” Powell said.

But tech can’t stand on its own

Although Powell believes technology can help fill a gap in retirement planning, he also emphasized that it cannot stand on its own.

“For the foreseeable future, you’ll need a human being in there as well to give you a lot of that guidance,” Powell said. “I think you’ll end up with a blend of both technology and people, but the technology absolutely helps get the information and the products to the consumers much faster.”

He said consumers can also leverage technology on their own to research retirement planning and gain a general understanding before they speak with a professional — and, in fact, many have begun doing just that.

“I think at least taking that approach first with financial advice is a really good thing because you are walking in as an educated consumer, and just being an educated consumer is a really important thing just in general,” Powell said.

However, he also said advisors can play a crucial role in helping clients cut through the overwhelming amount of information online while they’re making the transition from online research to real-life action.

“The challenge now is not so much the availability of information; it’s more like combing through all the information. It’s almost like information overload — I have all these choices in front of me all day long and they’re instantly available or near-instantly available now, so how do I make the right choice? That’s where your financial advisor comes into play,” Powell said.

He urged advisors to meet clients where they are when leveraging technology and using methods most comfortable to them.

“Anytime you are appealing to a specific group, you have to know your customer,” he said. “So, when I’m speaking to a baby boomer versus a Gen X or a millennial or Gen Y, et cetera, you have to understand how your own customer base consumes information and what’s most comfortable to them.”

iPipeline is a Pennsylvania-based global provider of digital solutions for the L&A industry, founded in 1995.

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