The author of the article examines retirement planning, and explains how what he calls “embedded finance” fits into the picture.
The following article comes from Philipp Buschmann, who has
written for this news service before on wealth management topics.
Buschmann is CEO and co-founder of AAZZUR. The editors are pleased
to share these views; the usual editorial disclaimers apply.
Email [email protected]
and [email protected]
if you have questions.
Retirement remains a pressing topic as the world of work evolves
and financial habits shift. With changing circumstances, we find
ourselves asking: What kind of lifestyle can we truly afford, and
how can we secure it for the future? What many may not realise is
that a powerful force is working behind the scenes to simplify
and enhance our financial lives. Embedded finance is re-inventing
how we keep and grow our money by weaving itself into banking,
payments, and investment services. The result? A more accessible,
intuitive, and personalised approach to saving and investing,
making retirement more realistic and enjoyable. But don’t take my
word for it; let’s find out how it works.
The problem with traditional retirement
planning
For decades, retirement planning has felt like a chore. People
have been expected to open separate investment accounts, navigate
complex financial jargon, and predict how much they’ll need
decades into the future. Many either put it off for too long or
never really engage with it at all. According to Charles Stanley,
21 per cent of people in the UK have no pension savings and
almost half have stopped paying into their pension at some
point.
That’s where embedded finance comes in. Instead of forcing people
to engage with traditional banks, financial advisors, or
standalone retirement apps, embedded finance brings retirement
planning directly into platforms which people already trust and
use; whether it’s a payroll app, a gig work platform, or even a
favourite online retailer.
Seamless savings without extra effort
Imagine this: Every time you complete a freelance gig or get paid
through an app like Uber, a small percentage automatically moves
into your retirement fund. No extra logins, no paperwork
– just seamless, passive saving. Companies like Betterment
and Acorns have already pioneered micro-investing, but embedded
finance takes it a step further by integrating these features
directly into payment platforms.
For gig workers, who traditionally lack employer-sponsored
retirement plans, this kind of integration is a game changer. It
makes saving for retirement as natural as spending, reducing the
friction that often leads to procrastination.
Investment tools for everyone
For years, investing for retirement required financial literacy
and time – two things many people lack. For example,
platforms such as PayPal and Cash App have already
incorporated stock and crypto investing into their services. Now,
imagine if these same platforms started offering
retirement-specific portfolios with automated contributions. No
need to transfer funds to a separate IRA provider – your
money is working for you within the tools you already use.
Retirement planning built into payroll
For traditional employees, employer-sponsored retirement plans
have been the standard. But with embedded finance, companies can
offer enhanced retirement benefits without requiring employees to
navigate complicated HR portals. Payroll systems can integrate
auto-enrolment, real-time balance tracking, and customised
investment options, making it easier than ever for workers to see
and manage their retirement savings in one place.
Startups such as SecureSave are already making waves by
embedding emergency savings and retirement contributions into
payroll, allowing employees to build financial security without
lifting a finger. The shift towards embedded finance in payrolls
will make retirement planning more intuitive, increasing
participation rates and improving financial outcomes.
Smart withdrawals for a stress-free
retirement
Retirement isn’t just about saving – it’s also about making
withdrawals that last. Embedded finance is introducing smart
withdrawal strategies that adjust based on market conditions, tax
efficiency, and personal spending habits. Instead of retirees
needing to manually transfer funds between accounts or consult
financial planners for every decision, AI-driven solutions within
their banking apps can optimise withdrawals automatically.
For instance, a retiree using a digital banking platform could
receive recommendations on the best tax-efficient way to withdraw
funds each month. If their spending trends suggest that they
might outlive their savings, the platform could suggest small
adjustments to extend their financial security without drastic
lifestyle changes.
The bigger picture: financial wellness for
all
Perhaps the most exciting thing about embedded finance in
retirement is that it democratises financial security.
Historically, access to top-tier retirement planning tools was
limited to those with wealth or financial expertise. Now,
everyday people – gig workers, small business owners,
part-time employees – can build retirement wealth through
the apps they already use.
Embedded finance is eliminating barriers, making retirement
planning less intimidating and more effective. By integrating
savings, investments, and withdrawals into the financial tools
people interact with daily, we’re moving towards a future where
financial security isn’t just a privilege – it’s accessible
to everyone.
As this shift continues, expect more platforms to integrate
retirement planning in ways we haven’t even imagined yet. The
future of retirement isn’t just about working longer or saving
more – it’s about making the process so effortless that
financial security becomes second nature. And that’s a future
worth investing in.
About the author
Philipp Buschmann is co-founder and CEO at AAZZUR, which
calls itself a one-stop-shop for smart embedded finance
experience. He is a serial entrepreneur with experience of
working in challenger banking, financial services, IT and energy
across the world.
He holds an MBA from the London Business School. He is
passionate about entrepreneurship and loves exchanging ideas,
insights and discussing fintech’s future. He has spoken at major
fintech events including Money 20/20, MoneyLive, Finovate,
Fintech Matters, and the Future of Retail Banking.
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