ALI Creates Retirement Virtual Assistant

The Alliance for Lifetime Income (ALI) announced the launch of a virtual personal assistant tool, “Ask ALI”, to help consumers understand complex financial terminology along with concepts important for retirement income planning.

The launch comes as ALI found significant communication gaps between financial professionals and consumers in its recent Protected Retirement Income and Planning (PRIP) study. According to the findings, 62% of financial professionals say they discuss protection with their clients, but only 27% of clients recall these conversations.

Furthermore, 64% of consumers say annuities are the most difficult financial product to understand because of the way advisors describe them.

“Consumers tell us they are reluctant to talk about their finances, in part because they are uncomfortable with the terminology and jargon often used in those conversations,” said Cyrus Bamji, ALI chief strategy and communications officer. “A recent study of different industries ranked finance second when it comes to the most confusing language. We have got to simplify financial conversations and break through this wall of jargon, so people feel more confident about what they really want and need in retirement.”

Consumers can enter “Ask ALI”, a question-and-answer BOT available throughout ALI’s website, www.protectedincome.org. The tool is designed to provide concise answers to simple questions including, “how much money will I need in retirement?” and “how much of my retirement income should come from Social Security?”

“Ask ALI” does not offer financial advice but serves as an educational resource designed to help individuals understand basic retirement income planning concepts and key financial terms such as protected income, which they may have limited or no prior knowledge of.

“The concept of protection is simple, yet critical for financial security, and while advisors say they discuss it, clients overwhelmingly tell us they don’t,” said Bamji. “What’s worse is that trust can be lost when someone with low financial understanding works with an advisor that uses complex language. During our consumer language focus groups, we heard comments like ‘it’s almost like they don’t want us to understand’.”

“Ask ALI” will also tap into answers contained within a newly released “Understanding Protected Income” guide, a resource designed to help people understand the role Social Security, annuities, and pensions play within retirement plans. Among other things, resources include a RISE Score, aimed at helping consumers understand the gaps between their expected income and expenses in retirement. It also includes a glossary of terms, research studies, and videos interviewing top experts about retirement issues.

“With a record number of people leaving the workforce, and Gen Xers on the doorstep of retirement, it’s important people feel more educated and confident about how to talk about their finances and retirement needs,” Bamji said. “We believe ‘Ask ALI’ will help people get the answers they’re looking for and take the next steps toward planning for the lifestyle they want in retirement.”