NewRetirement wants to simplify financial planning for retirement

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When entrepreneur Stephen Chen’s mom began approaching status age, she was forced to get money from Chen — and Chen’s relative — to make ends meet. They wanted to help, but nan siblings besides wanted to fig retired a much sustainable, semipermanent solution that’d thief their mom discontinue without having to interest astir finances.

Chen tried to get guidance from a financial adviser, but nary 1 would return his mother arsenic a customer because her nett worthy wasn’t considered precocious enough. So Chen started building spreadsheets and financial models himself, doing his champion to fig retired really his mom could unrecorded nan status manner that she wanted.

“People for illustration my mom deficiency nan devices to look astatine their money holistically and strategically truthful they tin make informed decisions, show their financial situation, understand which levers to propulsion and erstwhile and make nan relationship betwixt nan choices they make coming and nan semipermanent ramifications to their plan,” Chen told TechCrunch. “There’s a confluence of factors that whitethorn change nan early of financial readying and advising.”

It was aft Chen helped his mom little her expenses, fig retired erstwhile to declare Social Security, determine erstwhile to downsize and return different steps to go financially independent that Chen realized tons of different older Americans were facing nan aforesaid challenges.

So Chen founded NewRetirement, a Mill Valley-based institution building package to thief group create financial status plans. Today, NewRetirement’s direct-to-consumer products powerfulness financial readying for 70,000 users managing adjacent to $100 cardinal successful their ain financial plans, according to Chen.

“Our models spell beyond savings and investments, taking into relationship each of nan different factors successful a person’s life, from location equity, healthcare costs and taxes to Medicare and Social Security,” Chen said. “Every clip a personification makes a change, we tally thousands of simulations successful bid to thief them optimize their scheme … We relationship for thousands of different scenarios, enabling users to confidently representation retired accumulation and decumulation projections pinch integer guidance.”

NewRetirement is Chen’s 2nd startup aft Embark, an online assemblage hunt and admissions instrumentality he launched successful 1995. And, for illustration Embark, Chen sees NewRetirement arsenic a integer solution to a modulation faced by millions of Americans.

“120 cardinal Americans complete property 50 clasp 80% of nan wealthiness successful this country,” Chen said, “But moving retired of money remains a apical 10 fear, pinch astir half of Americans saying they are worried astir it.”

NewRetirement

NewRetirement’s level uses predictive modeling and information analytics to thief users suss retired nan correct savings approaches. Image Credits: NewRetirement

Indeed, nan mostly of Americans — arsenic galore arsenic 65%, per Charles Schwab’s Modern Wealth Survey 2023 — person nary general financial plan. And while 37% of respondents opportunity that they activity pinch a financial adviser, two-thirds of Americans judge that their financial readying needs improvement, according to Northwestern Mutual’s Planning and Progress Study 2023.

NewRetirement, which began arsenic a user offering and successful 2021 expanded to nan enterprise, charges $120 per twelvemonth for entree to a suite of tools, calculators, recommendations and script comparisons and ~$1,500 per twelvemonth for check-ins pinch a certified financial planner. In addition, NewRetirement sells a subscription-based backstage explanation type of its devices aimed astatine financial advisers.

Now, you mightiness wonder, what makes NewRetirement different from startups for illustration Retirable, which likewise provides an array of status readying devices and entree to plus managers? Chen asserts that NewRetirement is 1 of nan fewer — and possibly only — financial readying level that serves consumers arsenic good arsenic advisers and workplaces.

“Our halfway invention is allowing anyone to create a scheme pinch industrial-strength tools, enabling advisers to collaborate pinch nan extremity personification and making this disposable astatine standard done endeavor partners who bring it to their customers,” Chen said. “As much financial services companies spot their offerings for illustration finance guidance go commoditized, there’s immense worth successful helping clients and prospects deliberation astir their money holistically. By offering self-directed integer readying to clients versus starting pinch a quality adviser, they tin standard and service immoderate number of users, study astir them, thief them make bully decisions and position their products and services much effectively.”

Chen says that astir 70% of NewRetirement’s gross is endeavor presently, pinch nan remaining 30% coming from user customers. The level has 20,000 individual subscribers and “several” wealthiness guidance clients arsenic good arsenic “multiple” endeavor customers including Nationwide, which precocious expanded an existing business pinch NewRetirement.

That momentum nary uncertainty helped NewRetirement to cinch its Series A backing information this month.

The institution raised $20 cardinal successful a tranche that brings its full raised to $20.8 million, led by Allegis Capital pinch information from Nationwide Ventures, Northwestern Mutual Future Ventures, Plug and Play Ventures, Motley Fool Ventures and others. Chen says that nan rate infusion will beryllium utilized to grow 50-employee NewRetirement’s endeavor products, standard up onboarding, accelerate R&D efforts and build capacity to meet early demand.

“With this caller capital, we will person 3 to 4 years of runway,” Chen said. “That gives america clip to proceed to standard our endeavor partnerships and heighten our product. What’s more, nan existent downturn is enabling america to bring successful unthinkable talent. We person a beardown squad successful spot and will grow headcount further this year.”