Planning for retirement is a significant financial milestone, and the right tools can make all the difference in ensuring a secure future. Below, we explore some of the top retirement planning apps and websites, providing descriptions, features, pros, cons, and recommendations for who they are best suited for. These tools are sorted by user ratings where available, starting with the highest-rated.
Online retirement planners and calculators are powerful tools that can help you estimate your retirement readiness, project your financial future, and explore different savings scenarios. They often use Monte Carlo simulations, which run thousands of possible outcomes based on different variables, to give you a sense of your likelihood of success in retirement. These tools offer convenience, accessibility, and personalized insights that can be valuable when building your retirement plan.
However, it's essential to approach these tools with caution. While Monte Carlo simulations provide probabilities, they do not guarantee that a particular strategy will work for you. These simulations are based on assumptions about market performance, inflation, and other factors that can change over time, meaning the results are only as accurate as the inputs. Overreliance on these projections could lead to a false sense of security or, conversely, unnecessary anxiety.
It's also important to remember that online tools typically provide generalized advice and cannot consider the full complexity of your financial situation. This is where a fiduciary financial advisor can be particularly beneficial. A fiduciary is legally obligated to act in your best interest, helping you create a personalized retirement plan that aligns with your unique goals and circumstances. They can also provide expert guidance on investment strategies, tax implications, and risk management that online tools might not fully address.
In summary, while online retirement planners and calculators are useful for gaining insights into your financial future, they should be used as one piece of your overall retirement planning strategy, complemented by the personalized advice of a fiduciary financial advisor.
1. Fidelity Retirement Planning Tool
This might be my preferred retirement planning tool, as I've experimented with many. The granularity it offers for setting retirement spending is impressive. For instance, if I have a loan or mortgage, I can factor it in, along with a payoff date, so it's excluded from the monthly expense calculation later on. I appreciate the ability to adjust expectations for the market/economy from average to below average, and even significantly below average. The option to create multiple plans is beneficial, allowing for scenarios like altering the start date for social security to see the impact.
Features:
- Retirement preparedness score
- Personalized recommendations for improving savings
- Integration with Fidelity accounts
- Adjustability of key assumptions like retirement age, income needs, and inflation
Pros:
- Easy-to-understand score
- Free for all users
- Ability to model different scenarios
Cons:
- Limited to high-level analysis
Best For: Individuals looking for a quick, high-level snapshot of their retirement readiness.
2. Betterment
Description: Betterment is an online financial advisor and robo-advisory service that offers automated retirement planning and investment management. With a focus on long-term growth and retirement readiness, Betterment provides a hands-off approach to investing, making it ideal for those who prefer automated, algorithm-driven management of their retirement funds.
Features:
- Personalized retirement planning
- Automated rebalancing and tax-loss harvesting
- Goal-based planning
- Financial advisor access (for premium users)
Pros:
- Low fees
- Hands-off investment management
- Customizable retirement goals
Cons:
- Limited control over investments
- Premium service requires a higher balance
Best For: Betterment is best suited for investors looking for a low-cost, automated retirement planning solution with a hands-off approach. It's ideal for those who want to set goals and let the platform handle the rest, with access to financial advisors available for those willing to pay for premium services.
3. Empower (formerly Personal Capital)
Description: Empower, formerly known as Personal Capital, offers a comprehensive suite of financial tools that are particularly well-suited for retirement planning. The platform is designed to provide a full financial picture by integrating various accounts and offering insights into both short-term and long-term financial health. Below is a description of the key tools provided by Empower:
Features:
- Retirement Planner with Monte Carlo simulations
- Integration of all financial accounts
- Net worth tracking and budgeting tools
- Free financial analysis tools
Pros:
- Free access to powerful planning tools
- Detailed insights into retirement readiness
- Wealth management services available
Cons:
- Premium advisory services come with higher fees
- Sales pitch for wealth management services can be persistent
Best For: Individuals with complex finances looking for comprehensive retirement planning and financial management tools in one place.
4. NewRetirement
Description: NewRetirement is a comprehensive retirement planning platform designed to help users of all financial backgrounds take control of their retirement future. Unlike simpler tools that provide basic projections, NewRetirement offers in-depth analysis, scenario planning, and expert guidance. Its focus is on empowering users to create a personalized and adaptable retirement plan that covers all aspects of their financial life, including savings, income, expenses, taxes, and healthcare costs.
Features:
- Retirement planning calculator
- Scenario analysis
- Comprehensive planning including income, expenses, taxes, and healthcare costs
- Expert advice options
Pros:
- Extensive customization options
- Detailed projections
- Free and premium plans available
Cons:
- Premium features can be expensive
- Interface may feel overwhelming for beginners
Best For: Individuals who want full control over their retirement planning and are comfortable navigating a detailed and comprehensive platform. It's especially useful for those with complex financial situations who need to consider taxes, healthcare, and other intricate details in their retirement planning.
5. WealthTrace
Description:
WealthTrace is a retirement planning software designed for individuals and financial advisors who need detailed, in-depth planning and analysis. It provides a wide range of tools that allow users to build comprehensive retirement plans, taking into account various factors such as income, expenses, taxes, Social Security, and investment growth.
Features:
- Detailed retirement projections
- Comprehensive analysis including taxes and Social Security
- Scenario testing and what-if analysis
- Expert financial advisor access (premium)
Pros:
- Deep level of customization
- Professional-grade analysis
- Access to expert advisors
Cons:
- Cost: WealthTrace is a paid service, and the premium plans can be expensive compared to simpler retirement planning tools.
- Complexity: The software has a steep learning curve, which may be overwhelming for beginners or those looking for a more straightforward solution.
Best For: WealthTrace is best suited for users who have complex financial situations and want detailed, professional-grade retirement planning tools. It is ideal for those who want to delve deep into various scenarios and projections, ensuring a thorough and personalized retirement plan.
6. Titan
Titan Retirement is part of Titan, an investment management platform known for offering personalized, actively managed investment strategies. While Titan is primarily recognized for its actively managed portfolios, it also provides tools and strategies specifically tailored for retirement planning.
Titan Retirement focuses on creating a personalized retirement plan through managed portfolios. Titan uses its investment strategies to grow your retirement savings while adjusting to your risk tolerance and long-term goals. The platform emphasizes long-term growth and offers active management to optimize retirement investments.
Features:
- Managed portfolios tailored to retirement goals
- Personalized investment strategies
- Access to expert insights and recommendations
Pros:
- Active Management: Unlike traditional robo-advisors, Titan offers active management of portfolios, which can potentially result in higher returns.
- Personalized Approach: Each retirement plan is customized based on the user’s financial goals, providing a more tailored experience.
- Expert Guidance: Titan provides access to expert insights and regular updates, keeping users engaged and informed.
Cons:
- Higher Fees: Active management often comes with higher fees compared to passive robo-advisors.
- Limited Focus on Retirement: While Titan offers retirement-focused strategies, its broader platform is geared toward general investment management, which might not appeal to those looking for a pure retirement planning tool.
Best For: Investors seeking active management of their retirement portfolios.
7. Projection Lab
Projection Lab is a modern and visually driven retirement planning tool that allows users to create detailed financial projections and scenarios. It focuses on helping users visualize their financial future through a user-friendly interface and intuitive financial modeling. It’s an ideal tool for those who prefer a hands-on approach to planning, with detailed scenarios and stress testing available at their fingertips.
Features:
- Detailed financial modeling
- Scenario planning and stress testing
- User-friendly visualizations
- Real-time updates on progress
Pros:
- Highly customizable projections tailored to individual needs
- Clear and intuitive visual representations of financial outcomes
- Real-time updates make planning dynamic and adaptable
- Strong focus on scenario planning and stress testing
Cons:
- Lacks direct investment management features
- Limited integration with external financial institutions
- Some users may find it overwhelming due to the depth of customization
Best For: DIY financial planners who enjoy a detailed and interactive approach to retirement planning, particularly those who like to explore various "what-if" scenarios and stress-test their plans.
8. Vanguard Retirement Nest Egg Calculator
The Vanguard Retirement Nest Egg Calculator is a simple, free tool designed to help individuals estimate how long their retirement savings may last. Based on data and simulations, it allows users to input different variables such as savings amount, withdrawal rate, and investment returns to project how sustainable their retirement income might be over time. It uses Monte Carlo simulations to estimate the likelihood of outliving your nest egg under different market conditions.
Features:
- Monte Carlo Simulations: The tool runs thousands of potential market scenarios to assess how long your savings might last.
- Adjustable Variables: Users can customize inputs like initial savings, annual spending, and expected market returns to model various retirement scenarios.
- Simplicity: This tool is quick and easy to use, making it accessible for individuals looking for a basic projection without needing to create an account.
Pros:
- Free and Accessible: No need to sign up or provide personal information; anyone can use it instantly.
- Easy to Use: Intuitive interface with clear inputs and results, perfect for those who want a fast estimate.
- Reliable Projections: Uses Vanguard’s industry-leading data and Monte Carlo simulations, which offer a solid estimate of potential outcomes.s
Cons:
- Limited Depth: While it’s great for high-level projections, it lacks the in-depth financial planning features found in more robust retirement tools.
- No Account Integration: There is no option to link your financial accounts, so you must manually input your data.
Best For: This tool is best for individuals seeking a quick, no-frills estimate of how long their retirement savings might last, especially those who are comfortable with simple input-output calculations and don’t need in-depth financial planning.
9. NetWorthify
NetWorthify is a free and simple tool designed to help users estimate how long it will take to achieve financial independence, particularly within the context of the FIRE (Financial Independence, Retire Early) movement. It allows users to visualize the journey to financial independence by inputting basic financial information such as current savings, annual income, and savings rate.
Features:
- FIRE Calculator: Provides a projection of how long it will take to reach financial independence based on your current financial situation.
- Simple Inputs: Users can easily input their annual income, savings rate, and expected annual investment returns.
- Visual Projections: The tool generates a graph that shows your projected time to financial independence.
Pros:
- Free to Use: NetWorthify is completely free, making it accessible to anyone.
- Easy to Understand: The interface is user-friendly, with simple inputs and clear results.
- Great for FIRE Enthusiasts: Ideal for those following the FIRE movement, as it focuses on reaching financial independence rather than traditional retirement planning.
Cons:
- Limited Features: It lacks advanced planning tools like scenario analysis, tax planning, or integration with financial accounts.
- Basic Functionality: The tool is focused on simplicity, so it may not be suitable for users who need detailed retirement planning.
Best For: NetWorthify is best for individuals who are part of the FIRE movement or those seeking a quick and easy way to estimate their time to financial independence. It's particularly useful for those who prioritize financial freedom over traditional retirement.
Conclusion
Each of these apps and websites offers unique tools to help you plan for retirement, whether you're looking for quick estimates, detailed financial projections, or automated investment management. The best tool for you will depend on your financial situation, preferences for hands-on or hands-off management, and the level of detail you want in your planning.