Use Technology to Address These 3 Retirement Challenges

Published May 3, 2018
Preparing for retirement can be challenging but new technology is making it easier to prepare, plan and manage retirement. Using technology can lower fees, provide better education and access to new opportunities

Preparing and managing retirement is fraught with challenges. Whether planning on how to spend in retirement, managing your estate and will, evaluating insurance options or creating a well balanced portfolio retirement planning can feel like a never-ending maze. The good news is that recently the rise of retirement focused technology solutions provide retirement planners of all ages some relief. Keep reading to see how three retirement challenges are being addressed using technology:

Challenge One: Creating an Estate Plan

The process of planning for your estate and beneficiaries can feel expensive and onerous, especially if you are early in preparing for retirement. But having a living will can be a valuable tool in the event you were to pass away. Ensuring that any assets you have are properly outlined and included will make the process for your beneficiaries significantly easier with a will. In the past, a will would have to be drafted up by an estate lawyer. The good news is that you can now create a simple living will for free with Willing. Having a will on file is always a good idea.

Challenge Two: Retirement Fees and Expenses

Studies have shown that the fees paid to advisors and for retirement plans can have a significant drag on the eventual size of a portfolio. It is essential to know the fees associated with any platform or investment that you are making. Keep in mind that fees and expenses are charged differently based on your provider, whether it is a financial advisor or a 401(k) be sure to review the fee structure and look out for hidden fees. FeeX uses technology to spell out the hidden costs of plans and then recommends more cost effective options. FeeX is free to users but does get paid on referral fees from fund providers.

Challenge Three: Uncertain Retirement Horizon

One of the hardest parts of planning for your finances in retirement is the uncertainty of how long your retirement can last. Having an estimate of your longevity allows you or your financial advisor to better create a spending, saving and investment plan for retirement. When using a longevity tool online be sure to read about the data set backing the tool and compare a few different estimates on reputable tools. At Blueprint Income, we teamed up with a Wharton statistics professor to create this longevity estimate tool based on an NIH and AARP study data set.

 

Interested in learning more about retirement and the Personal Pension? Sign up here to be on our newsletter.

Nimish Shukla

Nimish Shukla

Financial Planning Professional

Nimish has spoken with thousands of customers about retirement spending. As a CFA Charterholder and licensed fixed annuity producer he values the importance of building an income stream for retirement. In addition to his work at Blueprint Income he is also a regular contributor to Nerdwallet.