Vanguard and Fidelity project modest long-term returns for U.S. stocks, raising questions for Americans who rely on investment growth to fund retirement. Vanguard estimates average annual returns of 4.8% to 6.8% over the next decade, while Fidelity projects 5.8% annually over a 20-year period.
If returns fall below the assumptions in their retirement plans, savers could accumulate less than expected. Reviewing contribution levels, investment diversification and anticipated retirement expenses can help people assess their plans. The forecasts cover different periods and are estimates, so actual market performance may be higher or lower.
