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NewRetirement’s platform uses predictive modeling and data analytics to help users suss out the right savings approaches.Image Credits:NewRetirement
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When enterpriser Stephen Chen ’s mom begin approach retreat eld , she was forced to adopt money from Chen — and Chen ’s blood brother — to make end encounter . They wanted to help , but the sibling also require to figure out a more sustainable , long - condition solution that ’d help their mom retire without get to concern about finances .
Chen tried to get guidance from a financial adviser , but no one would take his mother as a client because her nett worth was n’t considered high enough . So Chen started building spreadsheets and fiscal models himself , doing his best to figure out how his mom could live the retirement modus vivendi that she need .
“ mass like my mammy lack the tools to appear at their money holistically and strategically so they can make informed decisions , monitor their financial situation , understand which levers to pull and when and make the connection between the option they make today and the prospicient - term ramifications to their plan , ” Chen told TechCrunch . “ There ’s a confluence of factors that may change the future tense of financial preparation and advise . ”
It was after Chen helped his mama lower her expense , figure out when to claim Social Security , resolve when to downsize and take other steps to become financially independent that Chen realized oodles of other elderly Americans were facing the same challenge .
So Chen foundedNewRetirement , a Mill Valley - based ship’s company building software to help hoi polloi create financial retirement architectural plan . Today , NewRetirement ’s verbatim - to - consumer product power fiscal planning for 70,000 users managing close to $ 100 billion in their own financial plans , according to Chen .
“ Our models go beyond nest egg and investments , taking into business relationship all of the other factors in a somebody ’s life , from home equity , healthcare costs and taxes to Medicare and Social Security , ” Chen said . “ Every time a user makes a variety , we fly the coop thousands of simulations for serve them optimise their architectural plan … We account for thousands of unlike scenarios , enabling user to confidently represent out accumulation and decumulation projection with digital guidance . ”
NewRetirement is Chen ’s second inauguration after Embark , an online college lookup and admissions tool he launch in 1995 . And , like Embark , Chen sees NewRetirement as a digital solution to a modulation face by millions of Americans .
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“ 120 million Americans over age 50 hold 80 % of the wealth in this country , ” Chen pronounce , “ But running out of money remains a top 10 fear , with virtually half of Americans saying they are worried about it . ”
Indeed , the legal age of Americans — as many as 65 % , perCharles Schwab ’s Modern Wealth Survey 2023 — have no formal financial architectural plan . And while 37 % of respondents say that they work with a financial advisor , two - thirds of Americans trust that their fiscal preparation call for improvement , accord toNorthwestern Mutual ’s Planning and Progress Study 2023 .
NewRetirement , which began as a consumer offering and in 2021 expanded to the endeavour , charge $ 120 per year for access to a suite of tools , calculators , recommendation and scenario comparisons and ~$1,500 per twelvemonth for check - IN with a certified financial planner . In addition , NewRetirement sells a subscription - based private recording label variation of its tools place at fiscal consultant .
Now , you might wonder , what makes NewRetirement unlike from startups likeRetirable , which likewise provides an array of retirement planning tool and access to plus managers ? Chen asserts that NewRetirement is one of the few — and perhaps only — financial planning platform that serves consumer as well as adviser and workplace .
“ Our core innovation is allow anyone to produce a programme with industrial - strength tool , enable advisers to join forces with the end user and pass water this uncommitted at weighing machine through enterprise pardner who impart it to their customers , ” Chen order . “ As more financial services companies see their offerings like investment direction become commoditized , there ’s vast value in helping client and prospect recollect about their money holistically . By offering self - directed digital planning to clients versus lead off with a human adviser , they can scale and attend any number of users , learn about them , help them make estimable decisions and place their product and services more effectively . ”
That impulse no doubt helped NewRetirement to cinch its Series A funding around this calendar month .
The company raised $ 20 million in a tranche that land its sum lift to $ 20.8 million , led by Allegis Capital with engagement from Nationwide Ventures , Northwestern Mutual Future Ventures , Plug and Play Ventures , Motley Fool Ventures and others . Chen enjoin that the cash extract will be used to inflate 50 - employee NewRetirement ’s endeavor production , descale up onboarding , accelerate R&D efforts and build electrical capacity to meet future requirement .
“ With this new Das Kapital , we will have three to four age of runway , ” Chen said . “ That give us sentence to carry on to scale our enterprise partnerships and enhance our product . What ’s more , the current downturn is enabling us to convey in unbelievable talent . We have a strong squad in place and will expand headcount further this twelvemonth . ”
