Fidelity Retirement Index shows Albertans on track for a 55% pay cut in retirement

    TORONTO, Oct. 23 /CNW/ - Fidelity Investments Canada ULC today released
new research showing that working households in Alberta are not as well
prepared for retirement as in other parts of Canada. The Fidelity Retirement
Index shows that Albertans are on track to replace only 45% of their expected
pre-retirement income in retirement, which is below the national Index score
of 50%.
    "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 showing how Alberta is doing, the Index also measures the
retirement preparations of the different regions and urban areas across
Canada. Quebec ranked the highest at 53% and Alberta the lowest at 45%. The
other regions were Atlantic Canada (52%), Ontario (50%), Manitoba and
Saskatchewan (52%) and British Columbia (47%).
    In addition, Calgary was behind other major cities in Canada. Montreal
ranked the highest at 51%, followed by Toronto (49%), Vancouver (48%) and then
Calgary 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 Albertans?

    "Despite their booming economy, Albertans are clearly behind other
regions in Canada in preparing for retirement," said Drake. "They need to take
action to address the wide gap between where they are today and where they
need to be."
    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
    While Albertans - and Calgarians in particular - have the highest earned
incomes in Canada, they also have the second lowest levels of retirement
savings, and this could mean some retirees will not achieve the retirement
lifestyle they want. Regardless, 36% of Albertans and 39% of Calgarians
believe that they will be able to maintain their current lifestyle in
    Beyond savings, pensions, and government benefits, the majority of
Albertans (59%) plan to work at least part-time in their retirement. By
contrast, looking at Calgary specifically, fewer Calgarians (54%) are planning
to work in retirement. Beyond working in retirement, 30% of Albertans and 39%
of Calgarians expect to use the proceeds from the sale of their current house
to help fund their 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, Albertans 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 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

    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.


    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'
      -  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
(416) 863-5615

For further information:

For further information: Chris Pepper, Director, Media Relations,
Office: (416) 307-5388, Mobile: (416) 795-7762, Email:

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