Work. Save. Retire. Spend...with new Fidelity Income Replacement Portfolios

    - Canadians can fund the retirement they want with regular monthly income
    designed to keep pace with inflation -

    TORONTO, Jan. 9 /CNW/ - As baby boomers, the largest generation in
Canada's history, approach retirement they are demanding new investment
solutions to help pay for the retirement they want. Responding to this demand,
Fidelity Investments Canada ULC today announced the launch of the Fidelity
Income Replacement Portfolios(TM), an innovative, easy-to-use and low-cost
retirement income solution for Canadians in or approaching retirement.
    Fidelity Income Replacement Portfolios are a flexible suite of
11 portfolios designed to last for different lengths of time, from 10 to
30 years. The Portfolios convert investors' retirement assets into a stream of
monthly cash flow over specified time horizons. Investors maintain full access
to their money and can turn payments on and off as their retirement income
needs change.
    "Saving enough for retirement is difficult. But turning those savings
into a secure retirement income can be even more challenging," said Darren
Farkas, vice president, Product Solutions, Fidelity Investments Canada ULC.
"That is where the Fidelity Income Replacement Portfolios can help.
Representing a first for Canadian investors, the Portfolios combine
professionally managed asset allocation with a professionally withdrawal
    These new portfolios are designed to be used in combination with other
retirement income sources including government income, annuities and other
investments. Retirees should have many sources of retirement income as part of
their spending plan, including a mix of non-guaranteed and guaranteed sources
of income to ensure that they can cover their retirement expenses in the most
cost and tax efficient manner possible. While guaranteed sources of income
should be included, investors need to consider the higher cost and complexity
of some of the guaranteed alternatives.
    Buildings on the success of Fidelity Managed Portfolios (wrap solutions)
and Fidelity ClearPath Retirement Portfolios (lifecycle funds), the new
Fidelity Income Replacement Portfolios are the next generation in asset
allocation solutions for investors. Similar to lifecycle funds, the equity
allocations in the Portfolios gradually become more conservative over time.
However, the Portfolios take the lifecycle investing concept to the next stage
by offering integrated investment and withdrawal strategies with monthly
payments that are designed to keep pace with inflation over the specified time

    Helping pay for the retirement you want

    "Increasingly Canadians are retiring earlier and living longer and many
Canadians are planning more active retirements than previous generations,"
said Farkas. "The Fidelity Income Replacement Portfolios give Canadians new
retirement income options and increased flexibility to help them live the life
they want in retirement."
    In 2005, Fidelity introduced the Five Key Risks to Lifetime Income that
investors need to consider when planning their retirement. The risks include;
outliving your money, losing your purchasing power due to inflation, investing
too conservatively or too aggressively, withdrawing too much money too soon
and not having enough saved to get the health care you need and want.
    Fidelity Income Replacement Portfolios are designed to help manage these
five key risks, and also provide financial flexibility so investors can enjoy
the retirement they want. The Portfolios can be used to cover income gaps or
to help investors keep options open early in retirement when they tend to have
more active lifestyles and require more income. They can also be used to fund
expenses over the long-term including those related to health or long-term
care. Fidelity's research shows that paying for future health care expenses is
one of the top worries for Canadians approaching retirement and the Portfolios
can be used to help offset some of these expenses.
    To learn more about the Fidelity Income Replacement Portfolios, please

    About the Fidelity Income Replacement Portfolios

    The Fidelity Income Replacement Portfolios are based on investment
approaches first developed by Fidelity and refined through years of research
and experience. The Portfolios give investors the flexibility and choice they
want when it comes to their retirement income needs. Fidelity Income
Replacement Portfolios are a flexible suite of 11 portfolios with horizon
dates ranging from 2017 to 2037, in two year increments. This unique new
retirement income solution is a cost-efficient option to convert retirement
savings into regular payments. An automatic withdrawal system provides
investors with monthly payments until the Portfolio reaches its end date, by
which time the original investment and any market returns will be paid out.
    The Portfolios are comprised of 10 underlying Fidelity mandates that are
designed to maximize growth potential early on and become more conservative
over time. Investors with non-registered retirement assets will benefit from
the tax efficiencies built into the Portfolios as the monthly payments will
include a portion of the original investment, which is not subject to tax.

    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.

For further information:

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

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