Feb 24, 2026
When Caitlyn Yingling finally logged into her 401(k) — the American equivalent of a Registered Retirement Savings Plan (RRSP) — she was stunned. The 32-year-old recruiter discovered her retirement savings were invested in a target-date fund set for someone who retired in 2015 — as if she had already left the workforce a decade ago.
Embarrassed but motivated, she turned to ChatGPT for help. The chatbot explained target-date funds and suggested adjusting her retirement year to 2060 and recommended a more growth-oriented allocation. Later, a human financial advisor confirmed the oversight and helped her fix the lingering settings.
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Yingling’s experience, first reported by The New York Times (1), captures how comfortable people are getting with turning to generative AI chatbots for advice on how to manage their financial lives. However, this highly ubiquitous yet convenient technology should not replace human-led, experience-driven financial insight, especially when planning for a liveable nest egg for retirement.
More Canadians are trying AI for financial tasks
A 2024 Ipsos poll conducted for BMO found 33% of Canadians say they are already using AI to help manage aspects of their finances, including budgeting, investment ideas and saving plans, with young adults leading the way (2).
While that figure isn’t specific to retirement planning, it shows Canadians are increasingly turning to this technology to learn about money and explore financial options. However, many remain cautious: A Primerica Canada survey of middle-income households found that 68% of Canadians prefer not to use AI for personal financial tasks such as budgeting, saving or retirement planning, underscoring trust concerns about automated guidance (3).
AI tools are appealing because they’re free, available 24/7 and can offer quick explanations of financial concepts without an appointment. Yet convenience doesn’t guarantee accuracy.
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Why AI answers can miss the mark
Large language models like ChatGPT generate responses by predicting patterns in text. They don’t automatically pull live market data and interpret Canadian tax rules (such as RRSP contribution limits or TFSA withdrawal implications).
Canadians face a multitude of decisions when planning their retirement. They need to know when to withdraw RRSPs, how to balance TFSA versus taxable investing, or when to begin Canada Pension Plan (CPP) or Old Age Security (OAS) benefits. However, the answer is highly contextual, depending on an individual's income, future cash needs, tax bracket changes and longevity assumptions.
A recent study cited by Kiplinger found ChatGPT gets financial questions wrong 35% of the time (4). Meanwhile, researchers at Investing in the Web asked the chatbot 100 personal finance questions and found more than a third were partially incorrect or flat-out wrong (5).
That’s a sobering statistic when the topic is retirement since small errors can compound over decades.
AI tools do not have a built-in ability to “know a client,” which is a core principle in providing regulated financial advice across Canada.
Where AI can still be useful
Despite risks, financial experts say AI can play a helpful supporting role when used carefully.
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It excels at explaining financial basics in plain language — for example, what an RRSP is, how asset allocation works, or why diversification matters. That aligns with Canadians’ behaviour: many use AI to learn more about personal finance topics and build financial literacy, according to the BMO survey (6).
AI can also help users spot mismatched asset allocations, generate budgeting templates and compare basic contribution strategies.
Read more: The ultra-rich are bailing on volatile stocks right now — these 4 shockproof assets are their new safe havens
AI best practices
It can be tempting to turn to AI due to its accessibility, but there are a few best practices to be mindful of when engaging with this technology for financial purposes, especially when planning retirement:
- You should avoid sharing sensitive data including your SIN number or full account statements
- Double-check projections using official sources or financial calculators
- Always ask the chatbot to cite its assumptions
- Be sure to discuss any major decisions or conclusions you may have been given with a financial professional
For those who want human guidance, options in Canada range from employer pension counsellors (7) to financial advisors (8). Automated robo-advisors also remain an option for simple investing goals.
Bottom line
AI is rapidly reshaping retirement planning. It’s expanding access, lowering barriers and making financial education more conversational than ever.
However, when a tool gets the answers wrong a third of the time, blind trust isn’t a strategy, but rather, a concern.
A succesfull retirement is dependent upon accuracy, so it's best to seek actionable advice from human professionals with a keen oversight of your unique financial profile.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
The New York Times (1); Ipsos (2); Stock Titan (3); Kiplinger (4,5); BMO (6); Cavalluzzo (7); Government of Canada (8)
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Monique Danao is a highly-experienced journalist, editor and copywriter with an extensive background in finance and technology. Her work has been published in Forbes, Decential, 99Designs, Fast Capital 360, Social Media Today and the South China Morning Post. She leverages her industry expertise to produce well-researched and insightful articles. She has an MA in Design Research from York University and a BA in Communication Research from the University of the Philippines - Diliman.
