The Columbus, OH-based firm has partnered with NewRetirement to power its My Interactive Retirement Planner, giving retirement plan participants the ability to make more informed financial decisions and better prepare for retirement.
Most retirement savers understand the value of investing in a defined contribution plan to accumulate savings, but it can be tougher to visualize how their savings will translate into income once they enter retirement.
Nationwide’s new solution will help participants more effectively view both accumulation and decumulation planning to help provide a clearer path to and through retirement, according to the announcement. NewRetirement’s technology provided the “backbone” to power the overall calculations in Nationwide’s planner.
“We partnered with NewRetirement and designed these enhancements to deliver better projections so participants can see what their retirement budget might look like,” said Eric Stevenson, President of Nationwide Retirement Solutions. “It’s critical that we continuously engage with plan sponsors and their participants to help them think about more than just accumulating savings. It’s just as important to help retirement savers think about how their savings will translate to income in the decumulation stage.”
The added functionality shows how a participant's assets could be distributed over time and illustrates how retirement income sources, including outside investments, retirement plan accounts, Social Security and pensions work together—even highlighting years where there may be a shortfall or surplus of retirement income. What’s more, the improved calculation considers future tax rates and inflation, and continues to provide hypothetical rates of return to help provide a more specific retirement outlook.
“NewRetirement is redefining the digital-first financial planning market with comprehensive technology, digital coaching, and financial education to make lifelong financial planning available to everyone,” said Stephen Chen, Founder and CEO of NewRetirement. “We work with our enterprise customers before, during, and after deployment to ensure their ongoing success and engagement with their end users.”
