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How technology can help retirees

People are living longer, healthier lives, but as we age, our needs for services and support tend to change. Fortunately, many new technologies have been developed that can help retirees remain independent and safe at home for longer.

Photo of man on couch looking at laptop.

Budgeting for new expenses in retirement

The good news is that people are living longer, and there’s a lot of great technology and support services available to help them as they age. But this also means your employees may need to plan for a longer retirement—and figure out how to pay for it. 

U.S. life expectancy 1950–2024

Chart of US life expectancy

Source: U.S. Life Expectancy 1950-2024 | MacroTrends, as of 10/1/24.

As a plan sponsor, you can support your employees by helping them plan ahead for retirement, including letting them know about the tools and resources that are available to keep them enjoying their current lifestyle. Offering financial education and guidance on budgeting can help them find ways to save now and potentially improve their quality of life in retirement. 

Using technology to help older adults

There’s a new category of tools on the market that help older adults to be independent, safe, and secure at home. Some useful technologies may include home security systems, smart house appliances, health monitors, fall detectors, and medication management systems. 

The MIT AgeLab has been exploring how people think about longevity, ways they can plan for life tomorrow, and what technologies may be of interest and value to those who want to age in place, make daily tasks easier, or simply try new technologies. John Hancock and the MIT AgeLab are collaborating on a five-year research study to help improve the quality of life for the aging population and their loved ones. Together, we’re researching the future of longevity innovation: developing research, thought leadership, and workshops with the goal of driving actionable insight for the business community, policymakers, and individuals and their families.

Examples of technology to help support living independently

Value

Sample technologies

Home environment monitoring

Motion sensor, temperature sensor, contact sensor, humidity sensor, and air quality sensor

General information, reminders

Voice assistants and assistant interfaces

Social engagement, communication, and entertainment

Social robots, instant messaging platforms, social media, video chat platforms, smart televisions, gaming systems, and smart sound systems

Home maintenance and convenience

Smart thermostat, smart light, leak detector, smart blinds, air purifier, smoke detector, smart power strip, smart plug, and pet monitor

Home security

Security, smart doorbell, smart lock, and smart gate

Personal comfort and well-being

Smart mattress, smart blanket, smart toilet, smart shower, smart toothbrush, and smart sink

Outdoor maintenance

Smart lawn mower, smart irrigation system

Housework and housekeeping appliances

Smart toaster, smart kettle, smart refrigerator, smart dishwasher, smart microwave, robot vacuum, and smart laundry

Health, fitness, and safety

Glucose monitor, blood pressure monitor, heart rate monitor, medication management system, fall detector, nutrition tracker, fitness band, and home exercise platform

App-based services

Grocery delivery, food delivery, maintenance services, and transportation (rideshare)
This illustration is for informational purposes only.

Understanding technology and other new expenses

Your employees, whether close to or far from retirement, probably aren’t thinking about how technology could help them in the future or what it might cost. But it’s a potentially big expense that they should include in their retirement budget. 

MIT AgeLab estimated the yearly costs for different technologies or services that could be used by retirees:

  • Social companionship—Developments in social robotics have led to the creation of technologies such as Paro. This social robot looks like a baby harp seal and was designed clinically to comfort and calm people with dementia. And it’s the only product that’s been clinically demonstrated to do this. There are also other less expensive options available. 
    • Estimated cost for Paro—$6,000
  • Transportation—Relying on Uber or Lyft for transportation (assume average cost of $15 per ride, with three round trips per week).
    • Estimated annual cost—$4,680
  • Home and health monitoring technology
    • Fall detection system—$399
    • Smart lock—$200
    • Water leak detector—$389
    • Smart doorbell—$189
    • Health monitoring smartwatch—$399

Source: August Technologies for retirement insights brief, 2023.

Planning for retirement

Retiring and aging come with new needs for services and support, and technology is constantly being developed to help. But the costs can add up quickly. Consider partnering with your plan’s financial professional and recordkeeper to engage and educate your preretirees. By encouraging your employees to think ahead about what kinds of help they’ll need and the technology that’s available, you can help them budget for tools that can help them make the most of their retirement. 

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