Original text here from Patrice Bernard (LinkedIn)
NewRetirement has secured a $20 million funding round, a pivotal moment to highlight its comprehensive approach to retirement planning, available directly to consumers as well as to financial institutions and wealth managers looking to enhance their advisory capabilities.
In the United States and most developed countries, individuals over the age of 50 typically represent the wealthiest age group. Despite their prosperity, many are concerned about maintaining their desired standard of living into retirement, fearing they might one day lack sufficient means. Yet, paradoxically, few take the necessary steps to achieve their financial goals.
This is the challenge NewRetirement aims to address, much like other new and established players in the field. However, unlike competitors who often focus primarily on profitable investment strategies dominating user interactions, NewRetirement adopts a broader perspective. It recognizes that saving, especially long-term, is intertwined with other aspects of an individual's financial life.
The startup allows users to create and compare scenarios incorporating over 250 parameters, addressing both post-retirement needs—desired income levels, social security benefits, healthcare costs—and factors during the wealth-building phase, such as debt, everyday expenses, and special projects. Users can choose the level of guidance they feel they need.
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Depending on their familiarity with financial planning, clients can either monitor the progress towards their goals using standard wealth estimation graphs and alignment checks, or they can implement specific operational recommendations, participate in educational courses, and engage in discussions to enhance their financial literacy, or even opt for personal advising or coaching services (at a higher cost, naturally).
In summary, NewRetirement offers not just a traditional wealth management tool that prioritizes product placement but a financial well-being platform particularly aimed at those anxious about their retirement years. With its ability to adapt to different audiences and plans to enhance this capability through AI, it should also appeal to those typically reluctant to engage in financial planning.
In nearly a decade, the startup has attracted around 70,000 individual users managing nearly $100 billion in assets. Recognizing the challenge for FinTech companies to gain massive consumer traction, it has also developed a professional and institutional offering, now accounting for two-thirds of its revenue. Clearly, financial guidance is advancing in the American industry.
