A key component of the new tool is the Your Retirement Income Outlook estimator, which shows participants how much they will be able to withdraw during retirement based on their current account balance and savings rate, according to a Vanguard press release. Using the statement’s interactive feature, participants can personalize their income outlook by adding future income sources (such as DB plans, IRAs, and Social Security), or change their retirement age and current income.
The statement compares participants’ desired income with their projected income, and provides a recommended savings rate to help them meet their goals, the announcement said.
In addition, the statement includes a pie chart comparing participants’ current asset allocations with Vanguard’s recommended model allocation.
The company said it expects the statements to help plan sponsors from a fiduciary standpoint by helping participants make good decisions on savings rate and asset allocation.
The new statement will be distributed to 2.7 million participants beginning in December.
Vanguard’s Web site is www.vanguard.com .