How are you feeling? Every year the Office for National Statistics gives us an insight into the mood of the nation.
On balance, the latest figures tell us we’re a pretty resilient bunch. On a scale of one to 10, we give ourselves a score of 7.4 on the happiness index.
Times appear to be toughest when we’re in mid life, from about ages of 45 to 55. The pressures facing this “sandwich generation” are well documented, and rightly noted.
But post-55, something remarkable happens. As we continue maturing, and we enter the typical ages of retirement, we see an accelerated improvement in all measures. Indeed, we’re apparently never happier, or more satisfied, or believe life is more worthwhile than when we are in our 70s. In short, the secret of happiness appears to lie in a good retirement.
Our responsibility to support future happiness is only set to rise
This should make you sit up. We are in the “good retirement” business. So, I am therefore boldly proclaiming that we are also in the “happiness” business. What a responsibility we carry.
With record numbers saving for their retirement, thanks to automatic enrolment, and with the options at retirement greater than ever, thanks to the pension freedoms, our responsibility to support future happiness is only set to rise.
This responsibility leaves no room for complacency. We must always look to improve. And the vibrant debates, in this publication and elsewhere, gives me the confidence we have the appetite to keep pushing for better outcomes for those we serve.
Artificial intelligence (AI) has been widely reported as a “game changer” for many areas of life. Could it support happiness in retirement? Most of us are still in the foothills of this brave new world, but I thought I’d give it a quick test.
With more than 100 million registered users of ChatGPT, we can safely assume many others out there will be doing the same
I decided to put some of the most basic – yet most asked – retirement questions to ChatGPT. With more than 100 million registered users of ChatGPT, we can safely assume many others out there will be doing the same.
Here are my questions and its answers. I asked for the answers to be limited to 50 words or less. I was impressed with what it told me.
What is a pension? “A pension is a retirement savings plan. The accumulated amount is typically used to provide an income in retirement.”
How much should I save for my retirement? “The amount depends on various factors including your desired lifestyle in retirement, expected expenses and other sources of income. A general guideline is to save at least 15% of your annual income, however individual circumstances vary, so it is wise to assess your specific needs, or consult a financial adviser.”
Should I save in an Isa or a pension? “The choice depends upon your financial goals. Isas benefit from flexibility, tax-free growth and tax-free withdrawals. Pensions benefit from tax relief on contribution, tax-free growth and can often benefit from employer contributions too. You could consider both, and you may want to seek financial advice to help you plan.”
Should I opt out of my workplace pension? “This is a significant decision, and it is important to consider the implications. For example, by opting out you may miss out on employer contribution which would provide an additional boost to your retirement savings.”
Can ChatGPT give financial advice? “I can provide general financial information and suggestions, but it’s crucial to note that I am not a qualified financial adviser. A qualified financial adviser can consider your individual circumstances, goals and risk tolerance to provide advice that aligns with your needs.”
I accept that I was just dipping my toe in the vast ocean that is AI. And I’m not blind to the caution and warnings that surround this new technology. But, admirably, its balance seemed pretty good when responding to these basic, yet commonly asked, retirement questions.
As with investments, happiness can go down as well as up. And past performance is no guide to the future. But if the commitment of those in our industry can harness the power of this new technology, I’m hopeful we can play our part in supporting a better tomorrow.
Alistair McQueen is head of savings and retirement at Aviva
