SAVVI Financial launches retirement income predictor tool

• Key Insight: Discover how integrated retirement-income tools turn 401(k) data into dynamic lifetime-pay projections.
• What's at Stake: Employers risk talent retention if benefits don't address post-retirement income certainty.
• Supporting Data: 51% of non-retired Americans fear outliving their retirement assets (Schroders).
• Source: Bullets generated by AI with editorial review

Many employees are worried they won't be able to turn their savings into a reliable paycheck for life, but one company designed a tool aimed to help workers plan for the financial future they need.
Financial wellness platform SAVVI Financial launched a new retirement income guidance tool, in partnership with insurance company Voya, that helps employees better understand how far their savings will go in retirement. The platform combines information from employees' 401(k) account balances, taxes, health insurance and Social Security, alongside relevant market data to help employees better understand their retirement spending. 

"As they approach this stage of their careers most employees are feeling confused and overwhelmed by all the decisions they have to make," says Chris Moran, managing principal advisor at SAVVI Financial. "We want to help answer as many questions as possible, like what is their retirement goal? How much income do they want or need? Where are they going to be living and what will their tax situation be?"

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In an effort to deliver the most accurate prediction of what their retirement income will look like, the navigation tool — accessible through employees' benefit portals — calculates retirement pay projections that adjust over time,taking into account potential changes to their finances such as multiple income streams or estate planning needs. It also recommends withdrawal strategies that account for factors like multiple income sources and varying retirement ages. Participants also receive early "next best" action guides to help set them up for success before they get started.

With 51% of non-retired Americans report being "concerned" or "very concerned" about outliving their assets in retirement, according to a Schroders retirement survey, it's becoming increasingly imperative to offer employees a more comprehensive savings solution that includes post-retirement income options, Moran says.

"Gone are the days where employees could work for the same company for 30 or 40 years and sign a couple forms and retire with a monthly paycheck — everything is a lot more complicated now," Moran says. "As an industry we've gotten very good at getting employees to retirement, but [we haven't progressed past that.]"   

Taking the lead on a secure future

Helping employees get past their fear of the future, and instead focus on their financial reality is where today's leaders can play a pivotal role, Moran says. In addition to savings products, organizations should provide better financial education around long-term savings, and incorporate lifetime income solutions into their 401(k) benefit plans. 

Read more: This company's retirement strategy starts with student loan repayment

SAVVI's retirement income tool doesn't just strengthen the impact of those strategies and make them more effective — it can also help reduce some of the burnout HR and benefit departments are facing that may be affecting the process as well. 

"These teams are stretched thin," Moran says. "If we can allow or provide them with another tool to make this process easier on them, we can then help them transition their employees into that next life phase." 

Equipping employees with a proactive retirement income solution is also more than just a financial wellness strategy, Moran adds. If done well, effective retirement support ties directly into engagement from employees of all ages, builds a better culture and boosts retention and recruitment efforts. 

"Leaders are the key to making this process work, and you should want to take care of your employees and be retirement ready for whenever they want to leave the workforce," Moran says. "But also, you should want to create such a positive experience that when they do retire, they're vocal with their appreciation about how their company helped them."