The fintech industry has revolutionized and changed many aspects of financial services over the past several years, from lending to student loan refinancing to budgeting to investing. Now there’s a crop of fintechs that have arisen looking to “fix” retirement in America.
According to the St. Louis Fed (as reported by CNBC), “It could be worrisome that, for many American households, the total balances of their retirement accounts may not be sufficient to ensure a solid life in retirement.” That’s the situation these fintechs are hoping to solve. American Banker recently profiled several of them, including Finhabits and Kindur. The article notes that traditional financial institutions normally have products and services for those who have already built up a sizable nest egg, but rarely programs to help those who have fallen short on saving.
The fintechs operating in this space are tackling this in a variety of ways, including helping people automatically set aside money in a retirement account and providing education about retirement options. In a world where nearly half of U.S. households aged 55 and over have no retirement savings, any additional resources in this area can only be welcomed.