In today’s fast-paced world, people are increasingly turning to robo-advisors for managing their retirement investments. Robo-advisors are automated platforms that use algorithms to build and manage a diversified investment portfolio for you. These platforms offer a cost-effective, hands-off approach to investing, making them an attractive option for individuals looking to secure their retirement with low fees. But with so many robo-advisors to choose from, how do you know which one is right for your retirement goals?
In this article, we will explore some of the best robo-advisors for retirement investment, highlighting their features, fees, and unique advantages. Whether you’re just starting to save for retirement or you’re looking to optimize your existing retirement plan, this guide will help you choose the best robo-advisor for your needs.
Read More: How to Build a Diversified Investment Portfolio with $1000
What Are Robo-Advisors and How Do They Work?
Before diving into the best robo-advisors for retirement, it’s important to understand what they are and how they work. Robo-advisors use algorithms to create and manage an investment portfolio based on your personal goals, risk tolerance, and time horizon. The primary appeal of robo-advisors is their low-cost structure, as they usually charge lower fees compared to traditional financial advisors.
Here’s how a robo-advisor typically works:
- Questionnaire: You fill out a questionnaire about your financial goals, risk tolerance, time horizon, and current savings.
- Algorithm-Based Investment Strategy: Based on your answers, the robo-advisor uses algorithms to create a diversified portfolio of low-cost exchange-traded funds (ETFs) and other asset classes.
- Ongoing Management: The robo-advisor automatically rebalances your portfolio to ensure that it remains aligned with your retirement goals, adjusting for market changes as needed.
Now that you have a better understanding of what robo-advisors are, let’s take a closer look at some of the best robo-advisors for retirement investment with low fees.
Top Robo-Advisors for Retirement Investment in 2025
1. Betterment
Overview: Betterment is one of the pioneers in the robo-advisor space and continues to be one of the best options for retirement investment. Betterment offers personalized retirement planning, tax optimization, and low-fee portfolios to help you grow your retirement savings.
- Fees: Betterment charges a management fee of 0.25% for its digital plan, and 0.40% for its premium plan, which includes more personalized financial advice.
- Investment Strategy: Betterment uses modern portfolio theory to build diversified portfolios, mainly consisting of low-cost ETFs. The platform also offers tax-loss harvesting and automatic rebalancing to optimize returns.
- Retirement Accounts Supported: Betterment supports traditional IRAs, Roth IRAs, SEP IRAs, and rollover IRAs.
- Unique Features: Betterment’s retirement planning tools help you set and track retirement goals, and their tax optimization features can help reduce your tax liabilities during retirement.
2. Wealthfront
Overview: Wealthfront is another leading robo-advisor known for its low fees and sophisticated technology. It offers automated investment management for retirement with a focus on long-term growth and tax efficiency.
- Fees: Wealthfront charges a flat management fee of 0.25%, which is one of the lowest in the industry.
- Investment Strategy: Wealthfront uses low-cost ETFs and offers tax-loss harvesting, direct indexing, and financial planning tools for retirement. The platform focuses on creating a globally diversified portfolio based on your retirement goals.
- Retirement Accounts Supported: Wealthfront supports IRAs (both Traditional and Roth), as well as 401(k) rollovers.
- Unique Features: Wealthfront’s financial planning tools are top-notch, providing projections on retirement income and expenses. Additionally, Wealthfront offers a unique “Path” tool to track your progress towards retirement goals.
3. SoFi Invest
Overview: SoFi Invest is a robo-advisor offering a range of investment options, including retirement-focused accounts. It is known for its low-fee structure and flexibility, making it a great choice for retirement savers.
- Fees: SoFi Invest charges no management fee for its automated portfolio service. However, the underlying ETFs have their own expense ratios (typically low).
- Investment Strategy: SoFi Invest uses a diversified portfolio of low-cost ETFs tailored to your risk profile. It also provides automatic rebalancing and tax-loss harvesting to optimize your retirement savings.
- Retirement Accounts Supported: SoFi Invest supports IRAs, Roth IRAs, SEP IRAs, and 401(k) rollovers.
- Unique Features: SoFi offers educational tools and access to financial planners, making it easier for users to understand their retirement options. Its no-fee structure is particularly appealing to those looking to minimize costs.
4. M1 Finance
Overview: M1 Finance is a highly customizable robo-advisor that allows you to create your own investment portfolio or choose from pre-built portfolios focused on retirement. It’s an excellent option for investors who want more control over their investments.
- Fees: M1 Finance charges no management fees for its basic service. However, it offers an optional “M1 Plus” membership for $125 per year, which includes additional features like lower margin rates and a premium portfolio management service.
- Investment Strategy: M1 Finance offers a “pie” investment strategy, where you can allocate funds into different sectors or asset classes (stocks, bonds, real estate, etc.). You can customize the pie to fit your retirement needs or choose from M1’s pre-built retirement pies.
- Retirement Accounts Supported: M1 Finance supports traditional IRAs, Roth IRAs, SEP IRAs, and rollover IRAs.
- Unique Features: M1 Finance’s customizable approach gives you the flexibility to manage your portfolio as you see fit. It also offers automatic rebalancing and dividend reinvestment, both key for long-term retirement growth.
5. Ellevest
Overview: Ellevest is a robo-advisor designed specifically with women in mind. It takes into account women’s unique financial planning needs, such as longer life expectancy and potential career breaks, when creating a retirement portfolio.
- Fees: Ellevest charges a management fee of 0.25% for its digital plan, and 0.50% for its premium plan.
- Investment Strategy: Ellevest uses a personalized approach to investing based on your financial goals, time horizon, and risk tolerance. The platform focuses on sustainable, low-cost ETFs.
- Retirement Accounts Supported: Ellevest supports IRAs (Traditional and Roth) and 401(k) rollovers.
- Unique Features: Ellevest’s goal-setting tools take into account factors like salary history and expected salary growth, helping you plan for retirement based on your personal financial journey.
6. Personal Capital
Overview: Personal Capital is a robo-advisor that offers a hybrid approach combining automated investment management with access to human advisors. It’s great for retirement investors who want more personalized advice while still benefiting from low fees.
- Fees: Personal Capital charges a management fee starting at 0.89% for portfolios under $1 million, which is higher than some robo-advisors. However, its wealth management services may be worth the extra cost for those seeking more guidance.
- Investment Strategy: Personal Capital uses low-cost ETFs to create a diversified portfolio. It also provides retirement planning tools that allow you to track your progress toward retirement goals.
- Retirement Accounts Supported: Personal Capital supports traditional IRAs, Roth IRAs, SEP IRAs, and 401(k) rollovers.
- Unique Features: Personal Capital’s combination of robo-advising and access to human financial advisors makes it a strong choice for individuals seeking both automation and human guidance for retirement planning.
Factors to Consider When Choosing a Robo-Advisor for Retirement
When selecting the best robo-advisor for retirement investment, it’s important to consider the following factors:
1. Fees
Fees can eat into your returns over time, so it’s crucial to choose a robo-advisor with low fees. Look for platforms that charge management fees under 0.50%, and consider any additional costs like ETF expense ratios.
2. Account Types
Ensure that the robo-advisor supports the specific retirement accounts you need, such as traditional IRAs, Roth IRAs, or 401(k) rollovers.
3. Features and Tools
Look for robo-advisors that offer retirement-specific features, such as retirement calculators, goal setting, tax optimization, and financial planning tools.
4. Investment Strategy
Choose a robo-advisor that offers a diversified portfolio of low-cost ETFs, automatic rebalancing, and tax optimization strategies to help maximize your retirement savings.
5. Customer Service
While robo-advisors are automated, it’s always good to have access to customer support when needed. Some platforms offer additional access to financial advisors, which can be a plus.
Conclusion: The Best Robo-Advisors for Retirement Investment
Robo-advisors provide a great way to build and manage your retirement investment portfolio with low fees and minimal effort. The platforms highlighted in this article—Betterment, Wealthfront, SoFi Invest, M1 Finance, Ellevest, and Personal Capital—are among the best options for retirement investing in 2025, offering a variety of features and fees to suit different needs.
When choosing a robo-advisor for retirement, consider your financial goals, risk tolerance, and desired level of involvement in managing your portfolio. By selecting the right robo-advisor, you can create a low-cost, diversified retirement portfolio that puts you on track for a secure financial future.
FAQ Section
1. Are robo-advisors a good option for retirement?
Yes, robo-advisors are an excellent option for retirement savings due to their low fees, automated portfolio management, and ease of use.
2. What’s the average fee for robo-advisors?
The average management fee for robo-advisors ranges from 0.25% to 0.50%. However, additional fees like ETF expense ratios may apply.
3. Can robo-advisors help with tax optimization?
Yes, many robo-advisors offer tax-loss harvesting and other strategies to minimize tax liabilities, which can help boost your retirement savings.
4. What retirement accounts can I open with a robo-advisor?
Most robo-advisors support traditional IRAs, Roth IRAs, SEP IRAs, and 401(k) rollovers.
5. How do robo-advisors decide where to invest my money?
Robo-advisors use algorithms based on your risk profile, goals, and time horizon to build a diversified portfolio, typically consisting of low-cost ETFs.
6. Do I need a large amount of money to start with a robo-advisor?
No, many robo-advisors allow you to start with as little as $500 or even $100, making them accessible for investors with limited capital.
7. Can I customize my portfolio with a robo-advisor?
Some robo-advisors, like M1 Finance, allow you to customize your portfolio, while others use a pre-built allocation based on your risk tolerance.
8. How often should I check my robo-advisor’s portfolio?
Robo-advisors automatically rebalance your portfolio, so there’s no need for frequent checks. However, it’s good practice to review your portfolio annually to ensure it aligns with your goals.