Fidelity Investments has introduced a new, personal Retirement Score.
As Fidelity puts it, “Every individual’s retirement vision is unique, and every ‘someday’ starts with a plan. One of the first steps to creating a plan is to know where you stand on the retirement preparedness spectrum and whether you are on track to meet your goals.”
The tool asks people just six questions to generate their grade: their age; their annual salary; their total retirement savings balance; their monthly retirement savings; whether they foresee spending more, less or the same in retirement; and whether they are conservative, balanced, growth or aggressive growth investors. The Retirement Score then generates their figure, ranging from the red zone (on track to meet less than 65% of their retirement savings goal), to the yellow zone (65% to 80%), the green zone (81% to 95%) and the dark green zone (95%+).
The Retirement Score then tells people whether they are on track or not, telling them how much monthly income Fidelity projects they will need and what they are on track to have. The tool then lets people adjust their retirement age, monthly savings, expected standard of living in retirement and investment style.
It then allows people to see how they compare with others in their age and salary range, others in their age group, and all other Americans—giving them a percentage of how many people are better off or worse off.
In conjunction with the Retirement Score, Fidelity has a new Planning & Guidance Center, which people can use either online or with the help of a Fidelity investment professional to dive deeper into their Retirement Score. The Center or a Fidelity professional can suggest steps people can take to improve their retirement outcomes.