http://www.fidelityresearchinstitute.com/_pdf/Beyond_Conventional_Wisdom.pdf
Interesting. Let's pretend for a few minutes that this advice is objective and not designed to send "investors" running to their nearest financial advisor & screaming for help.
First, where's the proofreader?!? The first graph has blank space for a title and a Y-axis label, but neither are showing up in my version of Acrobat Reader. The rest of the figures appear to be okay but the typo makes a heckuva first impression.
Second, Boomers following this guidance will be working for a long time. Guessing from the accompanying text, the graph in Exhibit #1 is supposed to have a Y-axis label that starts at zero and rises in increments of two. The implication is that age-55 ERs should limit their SWR to about 3% if they don't want to run out of money in their 90s, and that
also assumes inflation is a constant 2.47%. Kinda different from FIRECalc's data, and even more conservative than most popular Monte Carlo calculators while having a horribly optimistic perspective on inflation. Based on these numbers & graphs, presumably no one is stupid enough to retire before age 55-- or else they've given up ER and gone back to work.
Third, another indication of Boomers working until they drop is the emphasis on delaying SS while earning income. Apparently the workers run out of money unless they delay SS until at least age 65, including additional catch-up contributions to 401(k)s. In one analysis, Exhibit #5, the only salvation for these poor people is purchasing an annuity (or annuitizing their company pension).
Finally, one case study shows a couple retiring at age 55 to start their own business "which they plan to work on well into their retirement years".
I guess I shouldn't complain. Fidelity only uses the phrase "85% of their pre-retirement income" once, and the people who blindly follow Fidelity's advice to work forever will probably save both SS & Medicare through their continued payroll contributions.
It's also a powerful reminder of why I only use the company for their cheap custodial services...