Video B-Roll via On-Demand and Satellite - Fidelity Retirement Index finds Canadians on track for 50% pay cut in retirement

    Are Canadians ready to significantly reduce their retirement lifestyle?

    TORONTO, Oct. 23 /CNW/ - The following B-Roll is available at the listed
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    DATE OF FEED:   Tuesday October 23rd, 2007
    TIME OF FEED:   2:00 PM EDT - 2:30 PM EDT
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    TOC             CFA TX 1

    STORY SUMMARY: Toronto, October 23, 2007 - Fidelity Investments Canada
ULC today announced the launch of its new Retirement Index which measures how
financially prepared working Canadian households are for retirement. This
research shows that Canadian households are on track to replace only 50% of
their pre-retirement income in retirement.
    "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?" 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. Earlier this
year, Fidelity released research that 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. "By introducing the
Fidelity Retirement Index, we hope to spark Canadians into action to start
planning and saving for their future," added Drake.

    What does this mean for Canadians?

    "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 in retirement than ever before.
Unfortunately, a 50% retirement income replacement rate shows that most
Canadians aren't financially prepared for the full life they are looking for
in retirement."
    More than ever before, individuals are shouldering the responsibility of
funding their own retirement. In addition to relying on savings, pensions, and
government benefits, the majority of Canadians (59%) plan to work at least
part-time in their retirement. Twenty-six per cent expect to use the proceeds
from the sale of their current house and 28% are expecting to receive an
    However, insufficient savings could mean some retirees will have to scale
back their retirement expectations. Some Canadians are already aware of their
situation, with 36% thinking that their expected income in retirement will not
be enough to maintain their pre-retirement lifestyle. "None of us has absolute
certainty about what the future might hold. However, you don't have to be an
expert on the future to save for it," added Drake. "Canadians are not planning
to slow down in retirement and nor should their income." 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

    A view on Canada and the world

    Along with showing how Canadians are doing on a national scale, the Index
also measures the retirement preparations of working households across Canada.
The results revealed some interesting variations: Quebec's Index score was
highest at 53% and Albert's was the lowest in the country at 45%. The other
regions include Atlantic Canada (52%), Ontario (50%), Manitoba and
Saskatchewan (52%) and British Columbia (47%). The overall 50% Index score for
Canadians shows they are lagging behind individuals in other countries in
their preparation for retirement. Similar studies conducted by Fidelity show
that individuals in the United States (58%) and Germany (56%) are better
prepared than Canadians. Index scores for the United Kingdom and Japan were
50% and 47% respectively. About the Fidelity Retirement Index In Canada,
Fidelity Retirement Index is based on a survey of more than 2,200 Canadians
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. The survey was
conducted for Fidelity by Richard Day Research, Inc. in February 2007. Index
calculations are driven by 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 and survey data 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.


    Interviews with:

    -   Canadians about their plans for retirement - streeters
    -   Peter Drake, Vice President, Economic and Retirement Research
        Fidelity Investments Canada ULC.

    Peter Drake's comments include provincial breakdowns.

    Questions to Peter Drake

    1.  Why are the Fidelity Retirement Index scores so low for Canada?

    2.  What should Canadians do to change their Index score; to raise it up?

    3.  What does Fidelity have to say about the change in retirement in

    4.  What is the Fidelity Retirement Index?

    5.  What can Canadians do to prepare for the future?

    6.  What can a young Canadian do to be better prepared for retirement?

    7.  What should the baby boomers be doing?

    8.  What is the Index score for British Columbia?

    9.  Why is B.C. below the national Index score?

    10. What is the Index score for Alberta?

    11. Why is the score so low for Alberta?

    12. What is the Index score for Manitoba and Saskatchewan?

    13. Why are the scores higher in Manitoba and Saskatchewan?

    14. What is the Index score for Ontario?

    15. What is the Index score for Quebec?

    16. Why do you think Quebec has a higher Index score than the rest of

    17. What is the Index rating for Atlantic Canada?

    18. Where are Canadians now and where should they be?

    19. What are the Index scores for some of the major cities across Canada?

    20. What is the reason for the Index scores in the major cities?

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