Workers worldwide are increasingly being pushed to take greater responsibility for retirement savings, but that’s no easy task for people who have no idea how much they need to set aside — particularly as other countries increasingly adopt defined contribution plans in replacement of defined benefit plans.
To help resolve that problem, Fidelity Investments has announced the industry’s first international retirement savings guidelines so that multinational companies and their employees in the U.K., Germany, Japan, Hong Kong and Canada are better able to begin to understand how much money needs to be saved for retirement.
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Set up to give workers “simple ‘rules of thumb’” to steer them in the right direction, the new guidelines are aimed at helping employees tackle two of the most common questions workers have about retirement savings: “How much do I need to save for retirement?” and “Am I on track to save enough?” The new guidelines are also designed to serve as a starting point for a broader retirement planning discussion.
The global guidelines are based on a consistent global framework that, when combined with locally relevant financial and demographic assumptions, can help multinational companies develop a benefit platform that can help meet the needs of a global workforce.