Boston Job Cuts Likely At Fidelity
Fidelity Investments, one of the world’s largest financial services firms, may cut up to 4,000 Boston jobs, where it is headquartered.
With the economic downturn, many shareholders are pulling their money out of investment accounts. Nearly 9 percent of the company’s workforce could be terminated as a result of the negative cash flow. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, the largest mutual fund supermarket and a leading online brokerage firm.
Over the last 12 months, according to The Boston Globe, Fidelity has reduced employment by 1,000. Worldwide, the company employs 46,000, including 12,000 in Massachusetts.
Fidelity recently reported that half (45%) of Americans age 61 today are planning to begin taking Social Security at the age of 62, the first year that eligible recipients can apply. The top reasons driving their decision to collect early are immediate financial needs and health and longevity concerns.
Of those who plan to begin drawing down at age 62, more than three quarters (77%) will use the funds to pay for basic living expenses, such as food, utility costs and mortgages. This group expects their Social Security payments to comprise as much as half (49%) of their total retirement income, yet when asked to quantify their Social Security payments, only 22 percent knew exactly how much their check will be. Nearly three quarters (73%) of those planning to start taking Social Security at age 62 are also making their decision without having a formal retirement income plan.
“Many Americans who are within one year of beginning to collect their Social Security retirement benefits may be planning to rely too much on it, considering Social Security currently only funds a little more than one-third, or 37 percent, of an average retiree’s income,” said Carolyn Clancy, executive vice president, Fidelity Investments Personal and Workplace Investing. “Social Security-related decisions can be complex and there can be trade-offs associated with the various payment strategies. But with some basic guidance and a lifetime retirement income plan, individuals may find it easier than they think to make an informed decision and get the most from their benefits.”