12:49 PM

Enhanced tool helps provide clearer retirement income picture

Most retirement savers understand the value of investing in a defined contribution plan to accumulate savings for when they’re ready to retire. However, it can be tougher to visualize how their savings will translate into income once they enter retirement.

To help retirement plan participants with this challenge, Nationwide has enhanced its My Interactive Retirement Planner—a personalized, retirement readiness tool that provides a holistic view of retirement by adding Detailed Income View providing a clearer year-by-year estimate of how savings could translate to income in retirement.

Nationwide partnered with NewRetirement, a company that offers a comprehensive financial planning engine delivered via white label or API. NewRetirement delivers a combination of automated financial planning technology and educational services focused on bringing financial wellness to the mass market in customizable ways. The company provided the necessary backend engine to power the overall calculations in Nationwide’s Detailed Income View.

 The new Detailed Income View offers a number of helpful features for participants:

  • Displays participants’ planned expenses by year and how their assets could support them
  • Highlights any potential income shortfall vs. planned expenses by year
  • Displays retirement income by source
  • Incorporates taxes as part of the income calculation
  • Includes updated inflation projections

“We partnered with NewRetirement and designed these enhancements to deliver better projections so participants can see what their retirement budget might look like,” said Eric Stevenson, president of Nationwide Retirement Solutions. “It’s critical that we continuously engage with plan sponsors and their participants to help them think about more than just accumulating savings. It’s just as important to help retirement savers think about how their savings will translate to income in the decumulation stage.”

The added Detailed Income View shows how a participant's assets could be distributed over time and illustrates how retirement income sources, including outside investments, retirement plan accounts, Social Security and pensions work together—even highlighting years where there may be a shortfall or surplus of retirement income. This information is powerful in helping to make more informed decisions.

The improved calculation now considers future tax rates, includes an enhanced inflation calculation and continues to provide hypothetical rates of return to help provide a more specific retirement outlook.

No personal identifiable information is shared with NewRetirement. Nationwide delivers a scenario based on information provided by the plan participant. NewRetirement then returns the information for a detailed income view for that scenario.

My Interactive Retirement Planner currently has over 2 million active participants, as of August 23, 2022.

My Interactive Retirement Planner is a hypothetical compounding example and is not intended to predict or project investment results of any specific investment. Investment return is not guaranteed and will vary depending upon your investments and market experience. Assumptions do not include fees and expenses. If fees were reflected, the return would be less.

My Interactive Retirement Planner is a service mark of Nationwide Life Insurance Company. © 2022 Nationwide