AI-driven retirement planning by FNB

Retirement used to be a once-a-year conversation. Clients would meet with their adviser, review numbers, and hope the projections held up a year later. However, life is unpredictable, and financial plans can fall behind between those annual reviews.

This is why FNB has changed its approach to retirement planning. Backed by artificial intelligence (AI), FNB offers a real-time approach, delivering continuous guidance that adapts to life’s changes.

Why real-time financial guidance matters

FNB applies AI technology to measure whether clients on track with their retirement savings. This ensures they can make timely adjustments to secure their financial future. Mark Nasila, FNB’s Chief Data and Analytics Officer, explains, “A yearly check-in with a financial adviser is no longer enough. Our technology transforms planning into an ongoing process that recalibrates as people’s circumstances change.”

The system analyses financial data in real time, such as income, bonuses, savings, and spending habits, to offer personalised recommendations. For instance, if a client’s salary increases, AI suggests updating their savings contributions. If they fall behind, the platform notifies them to adjust accordingly.

Smart retirement insights through AI

FNB’s dynamic AI model provides actionable guidance:

• Savings Adjustments: If their salary changes, AI recalibrates savings recommendations.
• Shortfall Alerts: Projections identify gaps in retirement goals, offering lump-sum or monthly increase strategies.
• Predictive Simulations: These offer a clear picture of how financial decisions affect retirement capital, comparing scenarios like investment strategies.

Samukelo Zwane, FNB’s Head of Product for Wealth and Investments, highlights, “This real-time insight assists clients in aligning their financial actions with their evolving goals.”

Robo-advice and predictive analytics

FNB’s AI-powered robo-advice platform (currently in version 1.1) uses advanced algorithms to match retirement fund strategies with personal goals. Clients receive projections of their investments, real-time progress updates, and actionable advice for addressing savings gaps.

Predictive analytics further enhance decision-making. For example, withdrawing R10 000 today? AI shows how that affects the longevity of retirement savings. Clients can also examine how different investment strategies impact their future finances.

FNB’s vision for smarter retirement planning

With AI, FNB aims to expand its offerings, including:

• Fraud Protection for Retirees: Security measures tailored to protect savings.
• Robo-Investments: Automated strategies for wealth growth.
• Dynamic Withdrawal Models: Smart systems for managing drawdowns.
• Longevity Risk Modelling: Longer financial support aligned with customer lifespans.

Zwane concludes, “We are not just building a retirement calculator but an intelligent, AI-enabled solution that adapts to clients’ evolving needs, keeping them in control of their financial future.”