Quebeckers lead Canada in preparing for retirement: Fidelity Investments



    TORONTO, Oct. 23 /CNW/ - Fidelity Investments Canada ULC today released
research showing that Quebeckers are better prepared for retirement than any
other Canadians. The findings come from the Fidelity Retirement Index which
measures the amount of pre-retirement income working Canadian households can
expect when they retire. The Index shows that, while Canadians overall are on
track to replace only 50% on their expected pre-retirement income when they
retire, Quebeckers lead other regions of the country with an Index score of
53%.
    "To put the Fidelity Retirement Index in perspective, a 53% Index score
means that Quebeckers will have to live on significantly less income in
retirement," added Drake. "While they are slightly ahead of the rest of the
country, without changes in their financial plans, they are still likely to
experience significant reductions in their planned retirement lifestyle."
    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.
    The Fidelity Retirement Index analyses Canadian households' broad
financial picture, including workplace and individual savings, projected asset
growth, future savings, projected government sources of income and pension
benefits, expected retirement horizon and longevity.

    A view on Canada, regions, cities

    Along with results for Quebec, the Index also measures the retirement
preparations of the different regions and urban areas across Canada. Whereas
Quebec ranked the highest, Alberta ranked the lowest at 45%. The other regions
were Atlantic Canada (52%), Ontario (50%), Manitoba and Saskatchewan (52%),
and British Columbia (47%).
    Similar to the regional scores, among metropolitan areas, Montreal ranked
the highest at 51%, followed by Toronto (49%), Vancouver (48%) and Calgary
lagging at 44%.

    What does this mean for Quebeckers?

    The majority of Quebeckers are saving for retirement, with 81% putting
aside something for their future. Yet Quebec trails other parts of Canada in
household retirement savings at $16,000 - behind Ontario, B.C. and the
Prairies. Two-thirds of Quebeckers (66%) report that they plan to work at
least part-time in retirement. In addition, 24% of Quebeckers say they will
depend on the sale of their current home to help finance their retirement
lifestyle.
    However, insufficient savings could mean some retirees will not achieve
the retirement lifestyle they want. Many people in Quebec are already aware of
their situation, with 37% believing that their expected income in retirement
will not be enough to maintain their pre-retirement lifestyle.

    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 how well prepared Canadians are for retirement. The Index is the only
national indicator that gauges the nation's retirement preparedness 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 income 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

    Fidelity Investments is Canada'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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