Fidelity`s 401(K) Data Show Auto Enrollment Has Biggest Impact on Younger, Lower-Paid Workers

Nine in Ten Workers Auto Enrolled in Retirement Plan Remain in Plan
BOSTON--(Business Wire)--
Fidelity Investments, the nation`s No. 1 provider of workplace retirement
savings plans, today announced that auto enrollment in 401(k) plans is proving
to have the biggest impact on younger and lower-compensated employees.

The number of Fidelity plans offering auto enrollment increased nearly 70% since
the end of 2007 to 2,699 corporate defined contribution plans as of March 31,
2009. While this represents just 16.3 percent of 401(k) plans that Fidelity
manages, nearly half of all participants are in a plan with auto enrollment as
the adoption of the feature has been led by some of the largest plans. Over 50
percent of plans with over 25,000 or more participants have adopted auto
enrollment. In contrast, just 13 percent of the smallest plans, those with 500
participants or less, are using auto enrollment.

"Auto enrollment is doing exactly what it was intended to do," said Scott B.
David, president, Workplace Investing, Fidelity Investments. "It is driving many
Americans who would have otherwise not saved - mostly the young and lower-paid
employees - to begin saving early and consistently which is critical to having a
healthy income in retirement."

Auto Enrollment Positively Impacts Younger and Lower-Compensated Employees

Fidelity data of auto enrolled participants showed that over half (52%) were
between the ages 20 and 34. By comparison, only 13 percent of participants that
were auto enrolled were between the ages of 50 and 64. The impact of auto
enrollment on older participants is not as significant as many are either
already participating or elect to enroll on their own.

Data also showed that the majority (56%) of participants that were enrolled
automatically made less than $40,000 a year. Among the participants that were
auto enrolled, only 10 percent had higher salaries ranging from $80,000 to
$150,000 a year.

Small Percentage of Workers Opt Out of 401(k) Plan Once Automatically Enrolled

Fidelity analysis of workers eligible for automatic enrollment showed that only
one in 10 proactively opt out of the plan. The average participation rate seen
in Fidelity plans that do not use auto enrollment is about 60 percent. That rate
increases dramatically to 90 percent participation for plans that adopt auto
enrollment for both new and existing employees.

"There is no doubt that auto enrollment has helped many new hires, especially
younger workers, get started on their way to saving," added David. "However,
most companies only auto enroll new employees and need to make the feature
available to existing employees as well, in order for auto to have a more
significant impact."

Employees Overwhelmingly Accept Default Deferral Rate Set by Employer

Fidelity research also showed that workers overwhelmingly either accept the
default deferral rate set by the employer or elect to increase it regardless of
how high the rate. An analysis of plans with the most common default deferral
rate of 3 percent showed that 57 percent of workers keep that contribution rate
and another 37 percent elect to increase the rate. Meanwhile, behavior of
workers in plans with a higher 6 percent default deferral rate don`t show a
dramatic difference with 60 percent opting to keep the rate and another 24
percent electing to increase the amount.

About Fidelity Investments

Fidelity Investments is one of the world's largest providers of financial
services, with custodied assets of $2.8 trillion, including managed assets of
over $1.3 trillion as of May 31, 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.

Please note that FIIS 401(k) plans were excluded from the analysis.

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

Fidelity Investments Institutional Services Company
82 Devonshire Street, Boston, MA 02109

527243

Fidelity Investments
Corporate Communications, 617-563-5800

Copyright Business Wire 2009