NewRetirement, a comprehensive, digital-first financial planning platform for consumers and enterprise partners, announced that it has closed its Series A round with $20 million in funding.
The funding round was “led by Allegis Capital and joined by Ulu Ventures, Nationwide Ventures, Fin Capital, Frontier Venture Capital, Cameron Ventures, Marin Sonoma Impact Ventures, Northwestern Mutual Future Ventures, Plug and Play Ventures and Motley Fool Ventures, bringing the company’s total funding to $20.8 million.”
Today’s news arrives at a time when “access to holistic financial planning is more critical than ever.”
The majority of Americans – “as many as 65%, per Charles Schwab’s Modern Wealth Survey 2023 – have no formal financial plan.”
Further, while 37% of respondents work “with a financial advisor, two-thirds of Americans (66%) believe their financial planning needs improvement, according to Northwestern Mutual’s Planning and Progress Study 2023.”
Rather than relying on the traditional advisor model – which “isn’t accessible to everyone and is difficult to scale – NewRetirement has leveraged technology, data, and modeling to create powerful digital tools that allow anyone to confidently create and manage their own financial plan that goes beyond savings and investments to include human capital, benefits, pensions, Medicare, Social Security, home equity, taxes, decumulation, estate planning and more.”
The comprehensive planning and modeling engine “considers thousands of scenarios, enabling individuals to do holistic accumulation and decumulation planning with digital guidance. NewRetirement’s direct-to-consumer product currently powers financial planning for 70,000 active users who are managing close to $100 billion dollars in their own financial plans.”
Stephen Chen, Founder and CEO of NewRetirement, said:
“Historically, financial planning has been limited to those who have the resources to hire an advisor. This means the majority of Americans do not have a long-term plan in place to help manage paying off student loans, purchasing a house, or planning for other life changes. We’ve seen firsthand that knowledge builds financial confidence, and when people plan strategically, they have better outcomes. Employers are stepping up to help their employees confidently prepare for their future by offering our self-directed, comprehensive platform as a benefit. We’re committed to using this new infusion of capital to help even more users reach their financial wellness goals.”
Employer plan sponsors and plan providers “can offer NewRetirement’s planner, calculators, and educational classes to their employees as an easy-to-use, self-directed financial wellness benefit. Wealth managers, banks, and insurance companies can utilize the company’s APIs, planner, calculators, and advisor tools to develop a white-labeled or co-branded platform, enabling them to leverage new business models, retain assets, and drive revenue with more engaged consumers.”
With its Series A funding, NewRetirement will aim to “expand its enterprise offerings, scale onboarding and support for new partners, enhance R&D efforts aimed at helping its user base, integrate LLMs and AI to provide more personalized recommendations, and build capacity to meet growing demand.”
