NerdWallet has created two tools to help Americans better prepare for retirement. In partnership with FeeX, the company has created a 401(k) Rollover Center where people can compare the cost of keeping their assets in their 401(k) plan to alternatives. NerdWallet has also created a retirement calculator to show people if their savings and planned retirement date are on track.
“At NerdWallet, we want to empower consumers to take control of their futures by helping them make the best financial decisions,” says Kyle Ramsay, head of investing and retirement for NerdWallet. “Our new retirement tools give our users a clear picture of where they stand today and guidance on how to improve, particularly by reducing fees that can drain their hard-earned retirement savings.”
The 401(k) Rollover Center asks users for their former employer’s name, the investment firm that holds the account and the type of investments in the account. Within minutes, FeeX analyzes the fees and delivers a cost comparison of the existing account and other investment alternatives. The retirement calculator asks users for their age, expected retirement age, current income, retirement savings and contributions—and lets them know where they stand with regards to their retirement goals.
FeeX issued a report two years ago that showed 82% of people between the ages of 60 and 65 have too great of an exposure to equities.