Claiming two in five American workers say they are unsure if they are on target to retire comfortably, MassMutual says it’s sharpening an online tool to give 401k savers “clearer information and help them make better decisions.”
MassMutual upgraded its high-profile RetireSMART Ready tool to provide 401k savers with better guidance and potentially improved outcomes to help reach their retirement goals. The upgrades include:
- The tool now provides a graphic illustration of how much income savers will potentially need in retirement and whether they are saving enough to get there;
- Savers can automatically include other sources of retirement savings and income they may have outside of their current employer-sponsored retirement plan as part of their ongoing retirement income calculations;
- Savers can obtain guidance from Envestnet | Retirement Solutions on what steps to take if their current savings strategy is falling short of their retirement goals. Savers can choose to implement the strategies by themselves, or work with a financial advisor on a recommended strategy.
“The enhancements are designed to help educate savers about their progress in reaching their retirement goals and to assist them with implementing plans, as 42 percent of American workers say they are unsure about whether they are on target to retire comfortably,” according to the company.
In order to allow for the most accurate projections possible, 401k savers can include information about other qualified retirement plans they may have such as IRAs or 401(k)s from previous employers as part of income or retirement readiness calculations.
Information about outside assets can be entered into the calculation manually or automatically by utilizing ERS’s integration with the Envestnet | Yodlee data aggregation platform to connect with other accounts outside of the saver’s employer-sponsored retirement plan.
“ERS and Yodlee are part of the Envestnet platform, and utilize our combined resources to help deliver a more holistic perspective for retirement plan participants,” said Babu Sivadasan, President of ERS, added. “A full financial picture helps savers make well-informed decisions, and ERS and Yodlee work together to provide this insight.”
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
