TORONTO, Oct. 23 /CNW/ - Fidelity Investments Canada ULC today announced
the launch of its new Retirement Index which measures how financially prepared
Canadians are for retirement. This research shows that residents of Manitoba
and Saskatchewan are on track to replace only 52% of their expected
pre-retirement income in retirement. In other words, they will have to live on
48% less income in retirement. This is slightly above the national Index score
"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?"
Along with providing a national measure, the Index also measures how
prepared different regions across Canada are for retirement. Quebec ranked the
highest at 53% and Alberta the lowest at 45%. The other regions were Atlantic
Canada (52%), Ontario (50%), and British Columbia (47%).
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.
What does this mean for Manitoba, Saskatchewan?
While the Index scores for working households in Manitoba and
Saskatchewan were slightly above the national score, they are still below
levels where many experts believe they should be. Research released by
Fidelity earlier this year 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."
Overall, the residents of Manitoba and Saskatchewan are the most
optimistic on their future, with 43% believing that that they will be able to
maintain their current lifestyles in retirement. They also had the highest
monthly household contribution to their retirement savings amongst all the
regions at $188 per month and the highest number of respondents (86%) saving
Residents of Manitoba and Saskatchewan diverged from the rest of the
country when it came to post-retirement employment plans. The majority (69%)
of respondents in the two provinces plan to work at least part-time in
retirement. (The national average is 59%.) In addition, 23% of people in
Manitoba and Saskatchewan plan to use the sale of their current home to fund
their retirement, compared to 26% on a national scale.
"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, 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
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; 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
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:
- Canadians about their plans for retirement - 'on the street'
- 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:
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
For further information:
For further information: Chris Pepper, Director, Media Relations,
Office: (416) 307-5388, Mobile: (416) 795-7762, Email: firstname.lastname@example.org