When Stephen Chen’s mother approached retirement age, she had to borrow money from Chen and his brother to make ends meet. Wanting to find a sustainable solution for their mom’s retirement, Chen took matters into his own hands after financial advisers turned her away due to her net worth.
Chen began creating spreadsheets and financial models to help his mother plan for retirement lifestyle she desired. Recognizing the lack of tools for individuals like his mom to make informed financial decisions, Chen founded NewRetirement, a company that provides software to help people create financial retirement plans.
NewRetirement’s products cater to 70,000 users managing nearly $100 billion in their own financial plans. The platform considers various factors like savings, investments, home equity, healthcare costs, taxes, Medicare, and Social Security to help users optimize their financial plans through simulations and digital guidance.
Chen’s second startup after Embark, NewRetirement addresses the financial challenges faced by older Americans and aims to alleviate fears of running out of money in retirement. With a focus on helping users improve their financial planning, NewRetirement offers a suite of tools for a yearly subscription fee, including options for working with certified financial planners.
NewRetirement differentiates itself by serving consumers, advisers, and workplaces with its financial planning platform. The company’s enterprise focus accounts for 70% of its revenue, with individual subscribers and wealth management clients making up the remaining 30%.
NewRetirement recently secured $20 million in Series A funding to expand its enterprise products, enhance R&D efforts, and meet growing demand. The funding round was led by Allegis Capital with participation from other investors like Nationwide Ventures, Northwestern Mutual Future Ventures, and Motley Fool Ventures.
