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Home/Markets & Investing/PAYMENT FOR ORDER FLOW SEC · SEC RETAIL INVESTOR RULE

AI Retirement Advice Fails the Math — Here’s What Both ChatGPT and Claude Miss

MF

Milo Fairchild

payment for order flow SEC · Apr 8, 2026

AI Retirement Advice Fails the Math — Here’s What Both ChatGPT and Claude Miss

Source: DojiDoji Data Terminal

AI-generated retirement plans from both ChatGPT and Claude contain fundamental flaws that could mislead users about how much they need to save, despite one model outperforming the other in key areas. When GOBankingRates tasked ChatGPT with building a financial plan for a 40-year-old targeting $100,000 annually in retirement, CFP Eric Franklin found the math was literally incorrect. A second plan, generated by Claude using the same prompt, avoided that error and went further—factoring in Social Security, recommending deferral to age 70, and addressing tax brackets, inflation, healthcare and disability insurance, and HSA and FSA accounts. Phil de la Motte, another CFP at Prospero Wealth, said Claude beat ChatGPT in nearly every dimension, with no major topic covered by ChatGPT that Claude missed.

Related Brief2d ago
retirement planning

Claiming Social Security at 62 could mean a 30% cut now — and a 23% cut later

A retiree who claims Social Security at 62 could see monthly benefits slashed by about 30% compared to full retirement age. That cut could deepen by 2032, when Social Security’s trust fund is projected to run out. At that point, benefits may be cut by another 23%. For someone already receiving reduced payments, the combined effect could leave them with less than half the monthly income they would have collected by waiting until 67. The earliest age to claim Social Security is 62. But for those born in 1960 or later, full retirement age is 67. Waiting until then — or up to age 70 — increases monthly benefits. Dave Ramsey has long advocated claiming at 62, arguing that taking payments early maximizes lifetime benefits if a person dies sooner than expected. He also suggests investing the early payments to grow wealth. But many retirees need Social Security to cover basic living costs and cannot afford to invest the money. For those who live longer than expected, the reduced checks become a growing burden. The Congressional Budget Office projects the Social Security Old-Age and Survivors Insurance (OASI) Trust Fund will run out of money by 2032. Without legislative action, the program would only be able to pay about 77% of scheduled benefits. A retiree who claims at 62 and faces a 23% cut in 2032 could receive monthly benefits reduced by nearly half compared to full retirement age.

Still, both failed at core elements of sound retirement planning. Neither addressed risk tolerance or risk capacity—critical inputs for personalized advice. Neither ran Monte Carlo simulations to estimate the probability of retirement success, instead assuming fixed, perpetually positive investment returns. That flaw risks drastically underestimating the size of the nest egg required. At the same time, both defaulted to a rigid 4% withdrawal rule without considering dynamic spending strategies, which could lead some to save more than necessary.

Related Brief2d ago
retirement planning

Taking Social Security at 62 Locks in a Lower Benefit—Even If Congress Acts

Claiming Social Security at age 62 permanently reduces benefits by up to 30 percent compared to waiting until full retirement age. If benefits are reduced in the future due to funding shortfalls, the cut applies to the already-lowered amount received by early filers. In many cases, that’s not a reason to rush—it’s a reason to wait. Delayed claiming increases benefits by a set percentage each month up to age 70. For most people, the breakeven age between claiming early and waiting until 70 falls around 80 to 81. Filing early is typically beneficial only if the recipient does not expect to live past 82 or 83. For healthy individuals with other income sources, waiting until 70 makes financial sense due to the guaranteed, inflation-adjusted income stream. The Social Security Trustees’ 2025 report projects the retirement trust fund will be depleted by 2033. At depletion, incoming revenue would cover about 77 percent of scheduled old-age benefits if Congress takes no action. On a combined Old-Age, Survivors, and Disability Insurance basis, the trust fund is projected to be depleted by 2034, with about 81 percent of benefits payable. Eliminating debt before retirement reduces reliance on Social Security, making funding uncertainty less impactful.

De la Motte emphasized that no one should use either AI to make irreversible financial decisions. While a well-crafted prompt can turn AI into a useful starting point—especially for those who’ve done little retirement planning—the output lacks the nuance and safeguards of professional guidance. Anyone using these tools should invest hours refining prompts, treat the results as preliminary, and consult a human financial advisor before adjusting savings or investment strategies.

Related Brief5h ago
social security

The One Big Beautiful Bill Act Accelerates Social Security Insolvency to 2032

A typical couple turning 60 in 2025 faces an annual reduction of $18,400 in benefits, a roughly 24% cut, if Congress does not intervene. This reduction is driven by the depletion of the Social Security Old-Age and Survivors Insurance (OASI) Trust Fund by 2032. The Congressional Budget Office and the Committee for a Responsible Federal Budget estimate insolvency by that date, a two-year acceleration from previous projections of 2033. The acceleration is caused by the One Big Beautiful Bill Act (OBBBA), signed into law in July 2025. The act introduces a $6,00 gratitude senior deduction that $6,000 senior deduction that reduces the revenue Social Security receives from taxing benefits. It also implements mass deportation policies that shrink the workforce and reduce payroll tax revenue. The Social Security Office of the Chief Actuary estimates these changes will reduce program revenue by $168.6 billion between 2025 and 2034.

payment for order flow SECSEC retail investor ruleSEC enforcement actionWarren BuffettSEC crypto enforcementSocial Security cutSEC ESG enforcement

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