Fidelity Retirement Index finds Atlantic Canadians are on track for a 48% pay cut in retirement



    TORONTO, Oct. 23 /CNW/ - Fidelity Investments Canada ULC today announced
the launch of its new Retirement Index which shows how financially prepared
Canadians are for retirement. The Index shows that Atlantic Canadians are on
track to replace 52% of their expected pre-retirement income in retirement. In
other words, they will have to live on 48% less income in retirement. This
could mean that, without changes in their financial plans, some Atlantic
Canadians could experience significant reductions in their planned retirement
lifestyle.
    "The Fidelity Retirement Index is the new definitive standard Canadians
can use to measure how prepared we are for retirement," said Peter Drake, Vice
President, Economic and Retirement Research, Fidelity Investments. "It
provides a clear answer to the number one question Canadians have about
retirement: "Will I have enough?"
    The Index analyses the broad financial picture of Canadian households
including workplace and individual savings, projected asset growth, future
savings, projected government sources of income and pension benefits, expected
retirement horizon and longevity.
    Along with showing the results for Atlantic Canada, the Index also
measures the retirement preparations of the different regions and cities
across Canada. Quebec ranked the highest at 53% and Alberta the lowest at 45%.
The other regions were Ontario (50%), Manitoba and Saskatchewan (52%), and
British Columbia (47%).
    Fidelity also looked at major metropolitan areas in Canada to see where
they are in their retirement preparation. Montreal ranked the highest at 51%,
followed by Toronto (49%), Vancouver (48%) and Calgary lagging at 44%.

    What does this mean for Atlantic Canadians?

    Research released by Fidelity earlier this year introduced a new
retirement income benchmark for Canadians. The research concluded that
individuals who want to maintain their current lifestyle in retirement should
aim to replace about 80% of their pre-retirement income. The Index results
clearly show the gap between this benchmark target and where Canadians are
today.
    "Many retirees are not planning to cut back on their lifestyles in
retirement," said Drake. "Instead, Canadians are retiring earlier, living
longer, and leading more active lives than ever before. Since Canadians are
not planning to slow down in retirement, neither should their income."
    However, insufficient savings could mean some retirees will not achieve
the retirement lifestyle they want. Retirement savings rates are lower in
Atlantic Canada than in any other part of the country. Many Atlantic Canadians
are already aware of their situation, with 44% believing that their expected
income in retirement will not be enough to maintain their pre-retirement
lifestyle.
    Sixty-two percent of Atlantic Canadians intend to work at least part-time
in retirement, compared with a national figure of 59% and 25% plan to rely on
the sale of their existing home as a source of income when they retire, in
line with the national figure at 26%. While many individuals will have other
sources of income for retirement, it is important not to view post-retirement
employment, home equity and inheritances as substitutes for planning and
saving for retirement.
    "Clearly no one can predict the future. However, you don't have to be an
expert on the future to save for it," said Drake. "To ensure that the next
stage of their lives is a full and satisfying one, Atlantic Canadians need to
take charge of their retirement planning."

    How prepared are you for retirement?

    A great first step for Canadians is to assess their own projected income
in retirement. They can do that by talking to their financial advisor and by
using Fidelity's new Retirement Readiness SnapShot(TM) calculator at
www.fidelity.ca/takethechallenge

    About the Fidelity Retirement Readiness Index

    Fidelity's Index is an industry-leading analytical measurement designed
to track retirement readiness. The Index is the only national indicator that
gauges the nation's retirement readiness by analyzing households' broad
financial picture, including workplace and individual savings, projected asset
growth, future savings, projected government and pension benefits, expected
retirement horizon and longevity.
    It is based on a survey of more than 2,200 Canadians who are working
full-time; 25 years or older; reporting household incomes of $20,000 a year or
more; married/partnered with individuals who are also not yet retired; and are
the financial decision makers in their household. Interviews were completed
for Fidelity by Richard Day Research, Inc. in February 2007. Index
calculations rely on Fidelity's asset-liability modeling engine, which
generates the percentage of potential pre-retirement net income that each
individual household surveyed is likely to replace upon retirement. The Index
represents the median of the individual household percentages produced. The
data were weighted to reflect the national and regional distribution of
Canadian households with employed workers based on Statistics Canada data. For
full methodology see www.fidelity.ca

    About Fidelity Investments Canada ULC

    Fidelity Investments Canada ULC is the country's eighth largest mutual
fund company and part of the Fidelity Investments organization of Boston, one
of the world's largest providers of financial services. In Canada, Fidelity
manages a total of $42 billion in mutual fund and corporate pension plan
assets. It offers Canadian investors a full range of domestic, international
and income-oriented mutual funds. Fidelity funds are available through a
number of advice-based distribution channels including financial planners,
investment dealers, banks, and insurance companies. Fidelity Investments also
administers defined contribution plans and manages defined benefit assets on
behalf of corporate clients across Canada.

    VIDEO B-ROLL VIA ON-DEMAND AND SATELLITE AVAILABLE

    The following B-Roll on the Fidelity Retirement Index is available at the
listed times and coordinates:

    
    Interviews with:
    -   Canadians about their plans for retirement - 'on the street'
        interviews
    -   Peter Drake, Vice President, Economic and Retirement Research
        Fidelity Investments Canada ULC
    -   Peter Drake's comments include provincial breakdowns

    Broadcast Quality MPEG2 file download URL:
    http://cnw.pondeserver.com/story_details.asp?fn=147

    Live Satellite Coordinates:

    DATE OF FEED:   Tuesday October 23rd, 2007
    TIME OF FEED:   2:00 PM EDT - 2:30 PM EDT
    CO ORDINATES:   Anik F2 C, Transponder 7B
                    Audio subcarrier 6.2 and 6.8
                    Downlink frequency 3980 vertical
    TOC             CFA TX 1
    

    For technical information DURING the satellite feed, please call CNW at
(416) 863-5615





For further information:

For further information: Chris Pepper, Director, Media Relations,
Office: (416) 307-5388, Mobile: (416) 795-7762, Email: chris.pepper@fmr.com


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