Evaluating Future Medical Costs with Retirement Assets Could Result in Increased Preparedness

BOSTON, Mass., November 4, 2003 - With retirement planning more critical than ever for many Americans, a new survey from Fidelity Investments revealed that most workers may be missing opportunities to put the best plan into place¹.

According to the Fidelity survey, less than half² of workers review and manage their workplace and personal retirement assets together and more than two-thirds³ fail to calculate how much they will need to save to cover health care costs in retirement.

"We have found that American workers have been very good at managing their 401(k)s, but we believe they can be more effective when they take a total approach to retirement planning by factoring in their pension plans and other personal savings," said Kathryn Hopkins, executive vice president, Fidelity Institutional Retirement Services Company, the nation's largest provider of 401(k) plans. "Additionally, this comprehensive approach now needs to account for health care expenses, which have increased dramatically in recent years."

The survey also found that most investors do not consider their individual retirement assets when managing their long-term savings. In fact, less than 40 percent⁴ of those with personal retirement investments - such as an IRA - review these together with their workplace plans.

"Saving for retirement consistently ranks as the number one financial goal among Americans, so it is important to take a total view when making decisions about those assets," said Hopkins. "The annual enrollment season provides a convenient time for investors to analyze their investments and develop a diversified plan that potentially helps minimize risk and maximizes savings."

For investors who want to evaluate their retirement assets and determine if their current financial strategy is on track to meet their savings goals, Fidelity Investments suggests that they:

•		Conduct an annual check-up - Investors should take an inventory of all of their investments - such as a 401(k) or 403(b) plan, pension, IRA and brokerage account - and evaluate whether their assets are working together to meet their financial goals. Looking at the big picture will help them determine an appropriate asset allocation mix across all accounts to ensure their portfolio is properly diversified.
•		Calculate future medical expenses - It is essential for investors to plan now for retirement-related out-of-pocket health care costs by determining whether they will have access to employer sponsored retiree health care and by identifying gaps where other insurance, such as Medicare, falls short. Using tools like the Health Care Cost Calculator, available from Fidelity through NetBenefits®, workers can estimate the premiums and out-of-pocket expenses they can expect to pay during retirement.
•		Maximize workplace benefits - Workers should make the most of their company workplace retirement plan - participate in company match programs, contribute the maximum allowed to a 401(k) or 403(b) and, for those over age 50, take advantage of additional catch-up contributions. Eligible investors who participate in their company's stock option or employee stock purchase plan should remember to consider these investments as part of their overall financial plan.
•		Remember your partner - Less than 44 percent of survey respondents review their respective 401(k) or 403(b) plan together with their spouse. For a complete view of their overall financial picture, couples should look at their workplace retirement plans together to make the best investment decisions to meet long-term goals.
•		Diversify and rebalance assets - Make sure assets are balanced across all investment vehicles - and in all plans - to increase savings potential. Use planning tools, such as Portfolio Analysis, available on NetBenefits®, to review and manage all assets together.

About Fidelity Workplace Services^SM

Through Fidelity Workplace Services^SM, Fidelity Investments provides human resources administration and employee benefits solutions to more than 16 million participants in more than 11,600 retirement, pension, health and welfare, payroll and stock plans as of September 30, 2003.

Fidelity Investments

Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $1.6 trillion, including managed assets of $905.6 billion as of September 30, 2003. Fidelity offers investment management, retirement planning, brokerage, human resources and benefits outsourcing services to 18 million individuals and institutions as well as through 5,500 financial intermediaries. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, one of the largest mutual fund supermarkets and a leading online brokerage firm. For more information about Fidelity Investments, visit www.Fidelity.com.

¹ A nationwide online survey conducted by Richard Day Research, Inc. using Harris Interactive's online panel from July 30-August 28, 2003. It included 1,775 employees at large employers (5,000 or more employees) who participate in at least one of the following benefits: health care plan, defined contribution plan, defined benefit plan or medical flexible spending account (enrolled or available).
²Ibid
³Ibid
⁴Ibid

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Diversification does not ensure a profit or guarantee against loss in a declining market.
Fidelity Investments Institutional Services Company, Inc., 82 Devonshire Street, Boston, MA 02109