Those using these tools, Matzke noted, “are showing that they are taking their fiduciary role very seriously.” These tools can also be used to focus on in retirement under saving groups on a retrospective basis.
“We can see if are making a difference and, after alerting them, see how we can help these people,” according to Matzke.
These new tools can be effective, added Craig Lombardi, managing vice president for ICMA-RC’s Defined Contribution Investment Only Products. Still, he added, it is important that more financial professionals understand them and use them frequently.
“Everyone seems to be developing new sophisticated financial technology but not everyone seems to know what to do with it,” Lombardi said. “I think data will be the future of how we attack this business. But the future will be about how do we attack data.”
Besides doing more to help people build up bigger retirement savings, Matzke said, the retirement industry also needs to offer more advice on how to spend down assets.