The Income Simulator provides participants with a snapshot of how much estimated monthly income their current savings strategy may generate relative to their retirement goals. It uses a modeling engine to incorporate potential earnings from not only accounts held with Fidelity, but other retirement income sources such as Social Security benefits and pensions from previous employers.
Once the participant’s information has been entered, the product provides an illustration on how that participant’s potential monthly after-tax retirement income compares to 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. “Income Simulator is designed to help them do just that.”