The company said Retirement Outlook analyzes retirement investing with consideration for an entire household, taking into account a spouse or partner’s income and retirement investments, pension benefits, former employers’ plans, and additional retirement savings tools like IRAs. The tool is designed to quickly and easily model the effects a change made today will have upon retirement funding in the future, and users can save modeled results and re-access the information to view or update in the future.
The Retirement Outlook tool takes a snapshot of an investor’s circumstances then provides an evaluation and suggestions, addressing whether the investor is meeting retirement goals, and what changes an investor can make to move closer to his goals, according to the company.
The tool tracks the number of retirement years funded, as opposed to tracking a retirement readiness index or a dollar amount. Rather than requiring a user to make assumptions about the market and inflation, Retirement Outlook will use Monte Carlo simulation along with the Smart401k investment approach methodology.
Retirement Outlook became available for Smart401k clients on March 17.
“It was our goal to create a tool to answer the important question of whether or not an investor is on track, as well as provide suggestions to improve their current situation and bridge any gaps, all while putting it in terms that seem attainable,” said Smart401k CEO Scott Revare, in a news release.