What are the benefits of retirement planning tools?

There are some key benefits to using a retirement planning tool. They can offer direction on savings goals. Some can provide a gauge of your retirement readiness compared to peers’ readiness. Many can calculate a probability of success to measure your ability to cover retirement expenses or how much your income and portfolio withdrawals are expected to be.

There are factors, though, that are not in your control. Some of these include retirement plan changes, developments in the real estate market, interest rates, unplanned early retirement, inflation, longevity, debt, and retirement behavior.

In this article, Milliman’s Una Bearden and Alicia Favila discuss in more detail some considerations, benefits, and possible pitfalls of online retirement planning tools.

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