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 tom.burroughes@wealthbriefing.com and amanda.cheesley@clearviewpublishing.com 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.