By: 9 April 2024

Pensiontech firm says it will use the capital to expand its enterprise offerings

NewRetirement lands $20m in Series A funding

US pensiontech firm NewRetirement has raised $20m in a Series A round of funding led by Allegis Capital.

The California-based firm offers a financial planning and wellness platform for those thinking towards retirement. It says it will use the capital raised to expand its enterprise offerings and fund the research and development of its platform.

NewRetirement’s platform is currently powered by a planning and modelling engine that leverages data and technology to deliver digital tools. The aim of these tools is to empower consumers in the US to confidently create and manage their own financial plan.

Pairing holistic accumulation and decumulation planning with digital guidance, the tools extend to estate planning, home equity, pensions, medicare, social security and taxes, among many other things.

While aiming of further establishing its API-based enterprise offering alongside its direct-to-consumer product, NewRetirement adds that the capital will also be used to integrate LLMs (Large Language Models) and AI into the platform to provide more personalised recommendations.

The funding comes at a time of great need in America. According to research published in Charles Schwab’s Modern Wealth Survey 2023, 65% of Americans have no formal financial plan. And with social security reserves predicted to run out by 2034, it’s more important than ever that people are looking after their finances for retirement.

NewRetirement joins a growing list of fintechs to have completed a Series A funding round this year. Amongst others, Saudi digital lending platform Tameed raised $14m.

Stephen Chen, founder of NewRetirement, said: “With this new capital, we will have three to four years of runway. That gives us time to continue to scale our enterprise partnerships and enhance our product. What’s more, the current downturn is enabling us to bring in incredible talent. We have a strong team in place and will expand headcount further this year.”

Image: NewRetirement

Robert Welbourn
Robert Welbourn is an experienced financial writer. He has worked for a number of high street banks and trading platforms. He's also a published author and freelance writer and editor.