Video: Fidelity(R) Research Finds Couples Make No Progress in Joint Planning and...

Video: Fidelity(R) Research Finds Couples Make No Progress in Joint Planning
and Management of Retirement Finances Despite Historic Market Volatility

Only 15 Percent of Couples Express Confidence in Each Other's Ability to
Manage Finances

BOSTON, June 10 /PRNewswire/ -- Fidelity Investments(R) today released the
results of its second Couples Retirement Study(1), first fielded in 2007, that
tests communication, knowledge and agreement about finances and retirement
planning issues between husbands and wives.

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The results show that despite two years of unprecedented economic and
financial instability, which has severely impacted most American households,
husbands and wives have done little to improve their communication, planning
and management of retirement finances. Of great concern is that only 15
percent of couples feel confident that both of them could assume
responsibility for their joint finances if necessary.

In comparing this year's study results to two years ago, couples show little
progress in how they approach day-to-day finances, longer-term investing
decisions and retirement planning basics. For example, the study found that
less than half of couples make decisions jointly regarding the day-to-day
financial decisions of the household such as budgeting and bill payment (45
percent). Even fewer couples jointly discuss investment decisions for
retirement savings (38 percent). And on critical retirement decisions, 60
percent of couples don't agree on their respective retirement ages, 44 percent
are not in agreement on whether they will work in retirement, and 42 percent
have different ideas regarding their expected lifestyle in retirement.

"Many couples told us that they have fewer assets, will need to delay
retirement and work longer, and are worried about the impact of inflation and
rising healthcare costs on their retirement savings, yet they aren't talking,
planning or managing their finances jointly to address these very important
issues," said Kathleen A. Murphy, president, Personal Investing, Fidelity
Investments.

Reactions to Market Turmoil
When couples were asked whether their risk tolerance had changed as a result
of the recent volatility, many husbands and wives reported being more risk
averse, with 41 percent of husbands and 54 percent of wives indicating a lower
risk tolerance for their investments. As well, 73 percent of husbands and 64
percent of wives indicated their gut reaction during the crisis was to "stay
the course," while 15 percent of husbands and 18 percent of wives reported a
sense of "panic" and wanting to "pull out of the market."

It is very important, especially during highly volatile markets, that couples
talk regularly and openly about their financial situation, assessing their
time horizon, risk tolerance and asset allocation, deciding on a course of
action and making appropriate changes to their holdings if needed.

This joint decision making process may lead some couples to decide they need
to delay retirement or adjust their lifestyle expectations. In fact, husbands
and wives in this year's study both report that they anticipate their expected
retirement age to increase by one year -- with husbands now planning to retire
at age 64 and wives at 63. And, less than half (49 percent) of couples expect
a comfortable lifestyle in retirement.

Retirement Planning Efforts
Couples generally agree what unpredictable financial issues in retirement
concern them most, citing health care expenses (57 percent), inflation's
impact on savings (41 percent - up 13 percentage points since 2007) and Social
Security reductions (19 percent) as their top three.

To allay some of these concerns, couples should jointly research their health
care options, understand the Medicare application process that includes
timelines and premiums, and assess their need for supplemental insurance.
Couples should also review their Social Security strategy jointly to decide at
what age they will begin taking payments -- factoring in longevity, taxes,
employment and spousal considerations.

Although couples agree about their top financial concerns in retirement, they
have not developed better planning habits. In fact, nearly 10 percent fewer
couples report they had completed critical plans -- be that a retirement plan,
an estate plan, or a will -- as compared to 2007. Fidelity recommends that
couples who have not yet completed a retirement plan start the process by
simply evaluating their essential and discretionary expenses, and then list
all sources of predictable income, including Social Security and pensions, to
see if they are on track to meet their retirement goals. Fidelity provides
free, easy-to-use online tools that can help couples with this process
including Fidelity's myPlan(R) Retirement Quick Check(2) and Retirement Income
Planner(3).

"We recognize that every couple's situation is different, with many husbands
and wives experiencing a job transition right now, others assessing whether
they are able to retire, and some simply juggling the competing financial
demands of raising a family," said Murphy. "Each of these life events has
clear financial implications that couples need to jointly discuss and then
agree upon a plan of action."

To help couples and all investors address these critical retirement planning
issues and navigate through these life events, Fidelity has taken several
actions over the past few months to offer services that are available free of
charge to both customers and non-customers alike. A new life stage micro site
is available to any couple where they can jointly assess their unique needs
and be guided to appropriate tools, services and products. In addition,
couples can attend any of Fidelity's free seminars on more than 20 financial
topics, or conduct a couples' consultation over the phone, or in-person at an
investor center, with one of the firm's financial representatives.

Investment Product Ownership & Understanding
Fidelity's study this year showed that ownership of retirement investment
products continues to be at high levels, but there is still confusion among
couples regarding what they own and how these products work. For example:

-- Annuities: Thirty-nine percent of couples don't agree on whether
they own an annuity, and less than one-quarter of couples know the
actual amount of money their annuity will generate for them in
retirement.
-- Life insurance: Although eighty percent of couples agree that at least
one of them has life insurance, when asked if they understood the
insurance coverage rule of thumb (7 times annual income), more than 9
out of 10 couples (95 percent) did not, and upon learning of it,
nearly
half (49 percent) agree they do not have enough coverage based on this
rule.
-- IRAs: Fifty-nine percent of couples agree they own an IRA, while 26
percent don't agree. In more than one-in-ten couples (11 percent),
one of the spouses does not know when they can begin withdrawing funds
from their own IRA.
-- Real estate: Forty-four percent of couples don't agree about
whether they will need to sell real estate to help fund their
retirement.

"With the decline in pensions, uncertainty around Social Security and
increasing healthcare costs, we're encouraged by the high ownership levels of
retirement investment products," said Jon J. Skillman, president of Fidelity
Investments Life Insurance Company. "Now the challenge is to help couples be
better prepared for retirement by understanding what they own, how these
products work, and their impact on retirement income."

Fidelity conducted the research with just over 500 married couples, comprising
Baby Boomers and older pre-retirees, born between the years of 1937 and 1964.

About the Study
The 2009 Fidelity Investments Couples Retirement Study was conducted online in
April 2009 by Richard Day Research, an independent research firm, with a
national sample from Knowledge Networks of 502 couples, including 157 couples
from the 2007 Fidelity Investments Couples Retirement Research Study, who meet
the following criteria: Married couples with household income of at least $75K
or investable assets of $100K or more; age 45 to 72; and plan to retire from
their full-time profession.

About Fidelity Investments Life Insurance Company (FILI)
Established in 1987, Fidelity Investments Life Insurance Company (FILI), and
for New York residents, Empire Fidelity Investments Life Insurance Company(R),
New York, N.Y., develop and market their own insurance products, in addition
to offering access to a number of insurance products from other from
well-known carriers(4). FILI maintains an A+ (strong(5)) rating from S&P and
an A+ (superior, 2nd highest) rating from A.M. Best(6).

About Fidelity Investments
Fidelity Investments is one of the world's largest providers of financial
services, with custodied assets of nearly $2.7 trillion, including managed
assets of $1.3 trillion as of April 30, 2009. Fidelity offers investment
management, retirement planning, brokerage, and human resources and benefits
outsourcing services to over 20 million individuals and institutions as well
as through 5,000 financial intermediary firms. The firm is the largest mutual
fund company in the United States, the No. 1 provider of workplace retirement
savings plans, the largest mutual fund supermarket and a leading online
brokerage firm. For more information about Fidelity Investments, visit
www.fidelity.com.

Fidelity Investments, Fidelity, myPlan, and Empire Fidelity Investments Life
Insurance Company are registered service marks of FMR LLC.

Neither Richard Day Research nor Knowledge Networks, Inc. is affiliated with
Fidelity Investments.

The experience of the couples who responded to the 2009 Fidelity Investments
Couples Retirement Study may not be representative of the experiences of all
investors.

Fidelity Brokerage Services LLC, Member NYSE, SIPC
300 Puritan Way, Marlborough, MA 01752

525529

(1) 2009 Fidelity Investments Couples Retirement Study. Online survey fielded
in April 2009 through Knowledge Networks Inc.'s nationally representative
panel and conducted by Richard Day Research.
(2) Retirement Quick Check is an educational tool offered for use by Fidelity
Brokerage Services LLC, member NYSE, SIPC
(3) Retirement Income Planner is an educational tool developed and offered for
use by Strategic Advisers, Inc., a registered investment adviser and a
Fidelity Investments company.
(4) Fidelity Brokerage Services LLC, Member NYSE, SIPC, and/or Fidelity
Insurance Agency, Inc., distribute fixed and variable insurance products
issued by Fidelity Investment Life Insurance Company, Empire Fidelity
Investments Life Insurance Company, New York, NY, and certain third party
insurance companies, which are not affiliated with Fidelity Investments.
(5) S&P rating reflects solid position in the variable annuity market,
operating performance, capitalization, liquidity and investment quality,
5/20/09.
(6) A.M. Best rating reflects company's financial strength, 4/01/08.

SOURCE Fidelity Investments

Corporate Communications of Fidelity Investments, +1-617-563-5800