Sorry, But AI Alone Doesn't Cut It for Financial Planning
Artificial intelligence has its place in retirement planning — but only as a tool. It falls short in several key areas that require a human touch.


Artificial intelligence (AI) is a powerful tool in financial planning, using data-driven analysis to make recommendations. But it often creates a false sense of security for individuals who are saving and investing for retirement.
While robo-advisers and AI-driven strategies can optimize investments, they cannot replace the tailored, long-term planning strategy by human retirement planners with real-world experience needed for long-term financial success and a well-funded retirement.
People need a custom-built financial plan across five critical areas — investment risk, income, health care, taxes and estate planning — that aligns with personal goals and risk tolerance when life changes. Human retirement planners are better equipped than AI to handle the nuances and numerous moving parts of a retirement plan.

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The Kiplinger Building Wealth program handpicks financial advisers and business owners from around the world to share retirement, estate planning and tax strategies to preserve and grow your wealth. These experts, who never pay for inclusion on the site, include professional wealth managers, fiduciary financial planners, CPAs and lawyers. Most of them have certifications including CFP®, ChFC®, IAR, AIF®, CDFA® and more, and their stellar records can be checked through the SEC or FINRA.
As Stephen Covey said, "Begin with the end in mind." A strong financial plan that you understand and checks all five critical areas listed above is the best way to set yourself up for success to reach your financial goals.
Start where you are
It’s crucial to start where you are today and plan for the retirement you want to achieve — and a retirement planner with real-life experience is the best way to help you get there.
The importance of working with a retirement planner rather than relying on AI is highlighted in the distribution phase, or what we call “Phase II.”
You’re retired at that point. The paychecks stop coming, and you rely on assets to support you. You face major changes across the board, in taxes, investment planning, estate planning, health care, Medicare, Social Security, etc.
You have too much at stake to let AI take control of every aspect of your retirement plan, especially when market corrections midway through retirement are practically inevitable.
Here are some areas of retirement planning in which AI falls short:
It leaves some missing pieces
AI cannot anticipate complex tax strategies, estate planning needs or long-term care costs — key factors that affect wealth over time.
A financial plan must integrate all these elements.
It relies on set-it-and-forget-it investing
AI offers algorithmic rebalancing and investment suggestions, but blind trust in algorithms can lead to missed opportunities, unexpected tax burdens and lack of preparedness for economic shifts.
It fails to bridge the emotional and behavioral gap
AI lacks the ability to coach people through emotional elements such as market downturns, major life events or personal financial decisions that require a human touch and strategic adjustments. In these cases, people need personalized service and a problem-solver they can relate to.
A retirement planner factors in your circumstances and values, placing relationship-first planning over rule-based automation. A trusting relationship built between planner and client is especially valuable when financial adversity hits.
It can't talk back
True financial security comes from understanding your financial plan and ensuring it is adaptable, not just automated. AI can assist, but individuals must take ownership of their financial future.
A big part of the planner-client relationship is being able to have hard conversations to understand what the client wants and integrate those goals.
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AI’s impact on many industries can’t be overstated, but in the financial industry, the role of advisers remains irreplaceable. Their expertise, empathy and overall experience enable them to provide direction over the long term and identify alternatives when adjustments are necessary.
Retirement financial planners help their clients through all kinds of life events and, along with managing the five moving parts of retirement, give sound advice and provide clients with an emotional safe space. Such an all-around, holistic approach cannot be duplicated by AI.
At best, AI can provide technological supplements to the real plan, but not all the plan’s components or, most importantly, the human connection.
Dan Dunkin contributed to this article.
Appearances on Kiplinger.com were obtained through a paid public relations program. The columnist received assistance from a public relations firm in preparing this piece for submission to Kiplinger.com. Kiplinger was not compensated in any way.
The Retirement Solution is an investment adviser registered under the Investment Advisers Act of 1940. Registration as an investment adviser does not imply any level of skill or training. For more information please visit: adviserinfo.sec.gov and search for our firm name. DA-003101.2
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Shane Perry is a retirement planner for The Retirement Solution. Shane has a passion for helping people transition smoothly into retirement with the knowledge and confidence of a solid income plan. He received his Bachelor of Science in Financial Planning and Advising from Purdue University. He also studied Economics with an emphasis on Investment Mathematics, Accounting, Estate Planning, Statistics and Tax Law.
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