Participants get a snapshot of how much estimated monthly income their current savings strategy may generate relative to their retirement goals. The Income Simulator uses a modeling engine to incorporate potential earnings from accounts held not only with Fidelity, but other retirement income sources, such as Social Security benefits and pensions from previous employers.
Using the participant’s information, the product generates an illustration of how the consumer’s potential monthly after-tax retirement income compares with their set goal, in both average and below-average markets. It then lets them experiment with adjustments to their contribution level, investment mix and retirement age to see how they may affect their potential retirement income. It also allows them to exclude income sources they do not wish to factor into their retirement income.
“Plan sponsors want user-friendly, yet intelligent, planning solutions so their employees can turn meaningful guidance into next steps to help them meet their retirement goals,” said Tom McGirr, senior vice president of workplace solutions at Fidelity Investments.
The tool is a component of Fidelity’s Plan for Life, for workplace participants. It allows the participant to easily visualize how small changes can make a big difference in achieving retirement savings goals using “what if” scenarios.