Fidelity’s Income Simulator Demonstrates How Savings Translates into Retirement Income

Simple resource empowers employees of all ages to estimate potential monthly retirement income and to explore steps to consider for retirement

BOSTON, March 19, 2013 – Fidelity Investments® today announced the availability of Income Simulator for Fidelity NetBenefits participants, an online guidance tool that provides employees with a snapshot of how much estimated monthly income their current savings strategy might generate for their household relative to their retirement goals. This intuitive experience is a component of Fidelity’s workplace participant experience, Plan for Life. It uses a modeling engine to incorporate potential earnings from not only accounts held at Fidelity – such as defined contribution plans, health savings accounts, and IRAs – but also other possible retirement income sources, such as Social Security and previous employer pensions.

“Successfully helping employees plan for retirement is one of the most important goals of workforce management,” said Tom McGirr, senior vice president of workplace solutions at Fidelity Investments. “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. Income Simulator is designed to help them do just that.”

The enhanced offering – which is available to all of Fidelity’s 15.8 million workplace participants through NetBenefits.com by spring 2013 – allows the participant to visualize how a few small changes may make a big difference in helping them achieve their retirement savings goals by modeling multiple “what if” scenarios. It then provides opportunities for the individual to explore suggested next steps.

But one of the most notable aspects of Income Simulator is that it enables participants to aggregate information about external assets, even if the accounts are held at other financial institutions. Other assets that could be added include additional household income, other workplace accounts, pensions, health savings accounts, IRAs, Social Security, government benefits, and non-retirement assets.

Once the information is entered, Income Simulator provides an illustration on how the individual’s potential monthly after-tax retirement income compares to their set goal – in both average and below average markets – and then lets them experiment with adjustments to their contribution level, investment mix, and retirement age to see how it might affect their potential level of income during retirement. Further, it allows them to exclude income sources that they don’t wish to factor into their retirement income.

According to a Fidelity analysis, half of participants who engage in guidance interactions with Fidelity take positive actions to help improve their retirement readiness, including increasing contributions for active participants, changing asset allocation, and consolidating former workplace plans.

Plan for Life – which provides educational guidance interactions – also includes access to dedicated telephone representatives focused on supporting workplace participants, innovative online resources, Fidelity’s engaging NetBenefits® portal, smartphone apps, communications programs, and onsite, on-demand and web-based workshops.

About Fidelity Investments
Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of $4.0 trillion, including managed assets of $1.7 trillion, as of February 28, 2013. Founded in 1946, the firm is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and many other financial products and services to more than 20 million individuals and institutions, as well as through 5,000 financial intermediary firms. For more information about Fidelity Investments, visit www.fidelity.com.

i Source: Fidelity internal information, full year 2011. Actions included changing asset allocation, consolidating former workplace plan, and increasing contributions for active participants. Income Simulator is an educational tool.

Guidance provided by Fidelity is educational in nature, is not individualized and is not intended to serve as the primary or sole basis for your investment or tax-planning decisions.
 
Income Simulator is an educational tool.
 
IMPORTANT: The projections or other information generated by Fidelity's Income Simulator ("the Tool") regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results. Estimates of potential income and assets illustrated by the Tool are in today's dollars (i.e., net of inflation) and are based on data entered, product attributes, and certain assumptions, including market performance assumptions based on hypothetical scenarios using historical data. Other investments not considered by the Tool may have characteristics similar or superior to those being analyzed. Numerous factors make the calculations uncertain, such as the use of assumptions about historical returns and inflation, as well as the data you and/or your workplace savings plan sponsor have provided. The Tool's analysis assumes a level of diversity within each asset class consistent with a market index benchmark, which may differ from the diversity of your own portfolio. Results generated by the Tool are not intended to predict present or future values of actual investments or actual holdings, and results may vary with each use and over time. Fund fees and/or other expenses will generally reduce actual investment returns and are not reflected in the hypothetical projections generated by the Tool.

Fidelity Brokerage Services LLC, Member NYSE, SIPC 900 Salem Street, Smithfield, RI 02917

Fidelity Investments Institutional Services Company, Inc. 500 Salem St., Smithfield, RI 02917
 
644891.1.0

© 2013 FMR LLC. All rights reserved.