Fidelity Calculator

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Fidelity Retirement Benchmark Calculator

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Fidelity Salary Multiples Benchmarks

Age 301x Salary
Age 403x Salary
Age 506x Salary
Age 608x Salary
Age 6710x Salary
function calculateFidelityScore() { var age = parseFloat(document.getElementById('userAge').value); var salary = parseFloat(document.getElementById('annualSalary').value); var savings = parseFloat(document.getElementById('currentSavings').value); var resultDiv = document.getElementById('fidelityResult'); if (isNaN(age) || isNaN(salary) || isNaN(savings)) { alert("Please enter valid numbers for all fields."); return; } var multiple = 0; if (age < 30) { multiple = (age / 30) * 1.0; } else if (age < 40) { multiple = 1 + ((age – 30) * (2 / 10)); // Interpolate between 1x and 3x } else if (age < 50) { multiple = 3 + ((age – 40) * (3 / 10)); // Interpolate between 3x and 6x } else if (age < 60) { multiple = 6 + ((age – 50) * (2 / 10)); // Interpolate between 6x and 8x } else { multiple = 8 + ((age – 60) * (2 / 7)); // Interpolate between 8x and 10x } var targetAmount = salary * multiple; var gap = targetAmount – savings; resultDiv.style.display = 'block'; document.getElementById('targetMultipleText').innerHTML = "Based on Fidelity's guidelines for age " + age + ", you should have approximately " + multiple.toFixed(1) + "x your annual salary saved."; document.getElementById('targetAmountText').innerHTML = "Target Savings: $" + targetAmount.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); var gapElement = document.getElementById('gapAnalysisText'); if (gap <= 0) { gapElement.innerHTML = "Status: Ahead of Schedule! You have saved $" + Math.abs(gap).toLocaleString() + " more than the recommended benchmark."; document.getElementById('statusHeader').style.color = "#2e7d32"; } else { gapElement.innerHTML = "Status: Behind Benchmark. You are currently $" + gap.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) + " away from your age-based target."; document.getElementById('statusHeader').style.color = "#d32f2f"; } }

Understanding the Fidelity Savings Guidelines

Financial planning can often feel like aiming at a moving target. To simplify this, Fidelity Investments developed a set of retirement savings benchmarks based on age. These "salary multiples" act as a financial fidelity calculator, helping individuals gauge if their current nest egg is robust enough to maintain their lifestyle in retirement.

The Rule of Thumb: Age-Based Multiples

The core philosophy behind the Fidelity calculator is that your savings should scale with your income and your age. Because your future retirement needs are often tied to your current standard of living (represented by your salary), using a multiple of that salary provides a personalized goal. Here is the breakdown of the major milestones:

  • Age 30: Aim to have 1x your annual salary saved.
  • Age 40: Aim for 3x your annual salary.
  • Age 50: Aim for 6x your annual salary.
  • Age 60: Aim for 8x your annual salary.
  • Age 67: Aim for 10x your annual salary.

How the Fidelity Calculator Works

To use this tool effectively, you need three key pieces of data: your age, your gross annual income, and the total value of all retirement-specific accounts (including 401(k)s, IRAs, and Roth accounts). The calculator performs a linear interpolation between the major milestones to give you a precise target for your specific age. For example, if you are 35, the calculator finds the midpoint between the 1x goal at age 30 and the 3x goal at age 40.

Example Calculation

Consider a 45-year-old professional earning $100,000 per year. According to the fidelity benchmarks:

  1. At age 40, the target was 3x ($300,000).
  2. At age 50, the target is 6x ($600,000).
  3. At age 45, the interpolated target is 4.5x your salary.
  4. Target Savings: $450,000.

If this individual has $350,000 saved, the calculator would show a gap of $100,000, signaling a need to increase contribution rates or adjust investment strategies.

What if You Are Behind?

If the fidelity calculator shows you are behind the benchmark, don't panic. These numbers are guidelines, not absolute laws. Several factors can influence your unique path:

  • Savings Rate: Fidelity suggests saving 15% of your gross income annually (including employer matches).
  • Asset Allocation: Ensure your portfolio is balanced between stocks for growth and bonds for stability based on your time horizon.
  • Retirement Age: If you plan to work until 70, your mid-career targets can be slightly lower.
  • Lifestyle Adjustments: If you plan to downsize or live more frugally in retirement, you may not require the full 10x multiple.

Conclusion

Using a fidelity calculator annually is a great way to perform a "financial check-up." It keeps you focused on the long-term goal of financial independence while providing manageable short-term milestones. Remember, the best time to start increasing your retirement contributions is today.

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