The Efficacy of Publicly-Available Retirement Planning Tools

Publicly available retirement planning tools are publicized to aid households in their retirement planning efforts, but households are likely overestimating tool effectiveness. The authors conclude that the advice provided from a majority of these tools is extremely misleading to households and propose a more systematic approach to tool development by improved choice of input variables. Analyzing theory and professional advisor opinion, critical input variables are identified and recommended. A case scenario is developed incorporating these critical variables and used to test the efficacy of 41 publicly available retirement planning tools