Fidelity Retirement Index shows Ontarians headed for significant drop in income in retirement



    TORONTO, Oct. 23 /CNW/ - Fidelity Investments Canada ULC today announced
the launch of the Fidelity Retirement Index, which shows how financially
prepared working Canadian households are for retirement. This research, which
looks at all regions of the country, shows that Ontarians are on track to
replace only 50% of their expected pre-retirement income after they retire.
This is in line with the national average.
    "The Fidelity Retirement Index is the new definitive standard from which
Canadians can 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?"
    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.
    Along with showing how Ontario is doing, Fidelity also tracked the
retirement preparations of working households across Canada. Quebec ranked the
highest at 53% and Alberta the lowest at 45%. The other regions were Atlantic
Canada (52%), Manitoba and Saskatchewan (52%), and British Columbia (47%).
    Fidelity also looked at urban 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%.
    The Fidelity Retirement 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.

    What does this mean for Ontarians?

    "Many Ontarians are not planning to cut their lifestyle in retirement. In
fact many are planning to retire early and lead very active lives in
retirement. Both of these will require more income," said Drake. "Yet the
Fidelity Retirement Index shows that Ontarians are on track to replace only
50% of their current income in retirement - in other words, they could have to
live on only half of their income in retirement. Without changes in their
financial plans, they will likely experience significant reductions in their
planned retirement lifestyle."
    Ontarians had the highest total household savings ($21,000) as well as
the highest anticipated annual defined benefit pension income ($24,000).
Fifty-nine percent of people polled in the province intended to work at least
part-time in retirement, and 26% planned to rely on the sale of their existing
home as a source of income when they retire.
    Of note is that respondents in Toronto were less likely than those in
Calgary or Vancouver to rely on their real estate holdings to fund their
retirement. Thirty-eight percent of people polled in Vancouver, and 39% of
those in Calgary, intended to use their current homes to fund their
retirement, compared to only 24% in Toronto.
    "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," added
Drake.

    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 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; report 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

    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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