TORONTO, Oct. 23 /CNW/ - Fidelity Investments Canada ULC today announced
the launch of its new Retirement Index, which measures how prepared working
Canadian households are for retirement. This research shows that British
Columbians are on track to replace only 47% of their expected pre-retirement
income in retirement. This is below the national Index score of 50%.
"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?"
When looking across the country, Fidelity has found some variations in
the retirement preparations for working households across Canada. Quebec
ranked the highest at 53%. The other regions include Atlantic Canada (52%),
Ontario (50%), Manitoba and Saskatchewan (52%) and Alberta (45%).
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%.
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 British Columbians?
British Columbians are on track to replace less of their pre-retirement
income than most other parts of Canada. With more responsibility on
individuals to fund their own retirement, this could lead to 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 British
Columbians are today.
Many British Columbians have ideas for how they are going to fund their
retirement with 57% planning to work at least part-time in their retirement.
As well, 31% expect to use the proceeds from the sale of their current house.
This number jumps to 38% for Vancouverites. Thirty-two per cent in B.C. expect
to receive an inheritance as part of their retirement funding.
"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
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
"No one can predict the future. But 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, British Columbians need to take charge of
their retirement planning."
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. Data for the Index is collected once per
year through a national online survey.
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 conducted
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 (or midpoint) 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