NewRetirement raises $20 million

NewRetirement, a digital-first financial planning platform for consumers and enterprise partners, has raised $20 million in a Series A round led by Allegis Capital, with participation from 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.

NewRetirement offers a financial planning solution to consumers, enterprises, and financial advisors. The company says that its digital tools allow anyone to 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 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.

The company charges $120 per year for access to a suite of tools, and ~$1,500 per year for collaborating with a certified financial planner. NewRetirement also has a subscription offering for financial advisors.

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.

With the new funding, NewRetirement will 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.

“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.” – Stephen Chen, Founder and CEO of NewRetirement.

“NewRetirement has emerged as a valuable platform for financial services firms and workplace retirement plans, and we’ve been impressed by their rapid adoption among enterprise clients. We are proud to back Stephen and the NewRetirement team as they leverage technology to meet these unmet market needs.” – Stuart Doane, General Partner at Allegis Capital.