{"id":203014,"date":"2025-10-10T13:25:48","date_gmt":"2025-10-10T13:25:48","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/203014\/"},"modified":"2025-10-10T13:25:48","modified_gmt":"2025-10-10T13:25:48","slug":"step-aside-human-advisers-ai-may-become-the-new-financial-planning-powerhouse","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/203014\/","title":{"rendered":"Step aside, human advisers. AI may become the new financial planning powerhouse"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

In a KPMG study, more than half of Gen Z respondents say they would rather use a self-service financial planning tool than work with a human adviser.monkeybusinessimages\/iStockPhoto \/ Getty Images<\/p>\n

Oh, hi again. Do you use AI to assist you with any tasks? Turns out, many Canadians are using it to help them manage their money. But what does that mean for human advisers? Let\u2019s dive into it.<\/p>\n

The rise of AI advisers <\/p>\n

A new study from KPMG this week found that Canadians have different levels of trust when it comes to using technology in their financial planning, and that level depends a lot on age.<\/p>\n

More than half (54 per cent) of Gen Z respondents said they\u2019re more likely to use a self-service financial planning tool than a human adviser if it was available to them, the highest of any generation. Baby boomers, on the other hand, still prefer the human touch: 56 per cent said they\u2019d rather work directly with an adviser. Millennials seem to want the best of both worlds, with 41 per cent favouring a mix of digital tools and human guidance, while Gen Xers were almost evenly split across all three options.<\/p>\n

\u201cThe future of financial planning lies in leveraging the efficiency of technology with the empathy of human interaction,\u201d said David Bardsley, national leader of KPMG in Canada\u2019s wealth management practice, in a statement.<\/p>\n

Overall, more Canadians are turning to AI for help managing their money. A 2024 Bank of Montreal report found that one in three Canadians use AI tools for things such as setting household budgets or learning about investing.<\/p>\n

The Globe and Mail recently put this to the test<\/a>: We asked ChatGPT to answer some basic personal finance questions, then human advisers evaluated its answers. The verdict was that the chatbot\u2019s advice was generally sound but pretty generic. <\/p>\n

Still, for younger Canadians whose finances are fairly straightforward, that may be enough \u2026 and it\u2019s free. Some readers even noted after that story was published that when you ask more specific questions, the AI\u2019s answers get sharper and more useful.<\/p>\n

The landscape for financial advice is shifting, and as AI technology becomes more capable and more widely adopted, financial advisers may have to find new ways integrate more AI tools to help Canadians with their finances.<\/p>\n

The Calculator ~30%<\/p>\n

Share of employed people in their 70s who are self-employed, according to a new study from Washington University in St. Louis, which is almost double the share<\/a> of self-employed people in their 60s.<\/p>\n

There are a few reasons this might be happening in the U.S., according to The Wall Street Journal. Some older adults simply don\u2019t want to slow down and are finally putting long-held business ideas into action. Others may be looking for extra income as longer lifespans stretch out retirement.<\/p>\n

It reminded me of my recent story about \u201cgranfluencers,\u201d<\/a> retired Canadians who are finding purpose (and a bit of profit) by building followings on platforms such as TikTok and YouTube.<\/p>\n

Are you self-employed in your 70s or older? I\u2019d love to hear from you. Email me at mraman@globeandmail.com<\/a>.<\/p>\n

The Retirement Receipt Open this photo in gallery:<\/a><\/p>\n

Ann-Marie owns a condo worth about $950,000 that still has a $345,000 mortgage, and has saved diligently over the years.Galit Rodan\/The Globe and Mail<\/p>\n

Should Ann-Marie, 60, sell her condo so she can spend $100,000 a year in retirement?<\/a><\/p>\n

The numbers: Ann-Marie earns $125,000 a year working for the federal government and has a defined-benefit pension that will pay about $68,000 annually. She owns a $950,000 condo with a $345,000 mortgage, has $473,000 in RRSP savings, and about $62,800 in her TFSA.<\/p>\n

The situation: She wants to retire at 62 and spend about $100,000 a year after tax \u2013 enough to maintain her lifestyle, travel, explore hobbies and help her aging parents \u2013 without running out of savings.<\/p>\n

Key steps, from a financial planner: Ann-Marie can meet her goal if she sells her condo and rents, freeing about $630,000 to invest after paying off her mortgage. Keeping the condo would mean depleting her savings by age 67. Deferring CPP and OAS to 70 would increase guaranteed income and reduce the risk of clawbacks, while continuing to build her TFSA would add flexibility in retirement.<\/p>\n

Have Your Say<\/p>\n

Have you recently received an inheritance, whether it was a financial gift, a family pet or an unexpected heirloom? What did you do with it? Send us an e-mail<\/a>.<\/p>\n

Best of the Rest <\/p>\n

\ud83d\ude80 There are three paths to early retirement.<\/a> According to Kristy Shen and Bryce Leung, who retired in their 30s, people can reach financial freedom in three ways: entrepreneurship, investing or optimizing. Each path has trade-offs \u2013 risk, skill or discipline \u2013 but the trick is choosing the one that fits your personality.<\/p>\n

\ud83d\udcb0 Accountants call for a tax system reboot.<\/a> Canada needs a full overhaul of its tax system to revive sluggish growth and stay competitive with the U.S., Chartered Professional Accountants of Ontario says. It urges Ottawa to simplify the tax code, lower income and corporate taxes, raise sales taxes, and boost R&D incentives.<\/p>\n

\ud83d\udcad Deciding to die on your own terms.<\/a> Writer Robin Laws-Field reflects on life after being approved for medical assistance in dying. Six months on, she\u2019s caught between relief and fear, planning her last day down to the Champagne, music and art show, while grappling with the weight of setting a date.<\/p>\n

Try This <\/p>\n

\ud83d\udcb8 Tell your kids what they\u2019ll inherit.<\/a> Parents who talk openly about inheritance give their children a chance to plan earlier in life, when it\u2019s most useful. Even a ballpark figure can help with big goals like buying a home or saving for retirement, says financial planner Anita Bruinsma. Bonus: Early gifting can also cut probate fees and taxes later on.<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: In a KPMG study, more than half of Gen Z respondents say they…\n","protected":false},"author":2,"featured_media":203015,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[21366,64,63,99,186,184,185,4669],"class_list":{"0":"post-203014","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-appwebview","9":"tag-au","10":"tag-australia","11":"tag-business","12":"tag-finance","13":"tag-personal-finance","14":"tag-personalfinance","15":"tag-retirementnewsletter"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/203014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=203014"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/203014\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/203015"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=203014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=203014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=203014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}