Generations Differ on Confidence Levels, but All Are Mindful of Parents' Savings Mistakes; Fidelity's SimpleStart^sm IRA Helps Investors Automate Savings Easily

BOSTON, Feb. 17, 2005 -- Nearly three out of four Americans say they will be more financially prepared for retirement than their parents, according to a recent Fidelity Investments poll, but confidence levels vary among the generations, as do their challenges in saving for retirement.

The Fidelity survey of more than 1,800 adults involved in decisions regarding their finances shows that many Americans across generations share concern over their parents' financial preparedness for retirement, and many would agree that one of their parents' biggest mistakes was starting to save too late. Of all those surveyed, young adults (21-34 year olds) are more confident than mid-life adults (35-54) that they will be better off financially in retirement than their parents, and are beginning to save earlier than any other group Fidelity surveyed. In fact, 71 percent of younger Americans started saving for retirement before age 30, while only 54 percent of 35-54 year-olds began saving that soon.

"Saving enough money to last throughout retirement is the biggest financial goal, and challenge, that Americans face," said Jeff Carney, president, Fidelity Personal Investments. "It's not easy. Investors of all ages want to avoid making the same mistakes as their parents, but they need discipline and guidance to get started early and stay on track."

Young adults who are not as confident that they will be better off than their parents recognize that poor spending habits could derail their own retirement savings and acknowledge their parents' enhanced ability to follow a budget. These young adults, as well as mid-life adults who are not as confident, share a realistic view of the increased living and healthcare expenses they will face in retirement. The majority of both groups plan to finance more of these costs with their own personal savings rather than government sources.

However, six in 10 Americans surveyed do not currently save in a tax-advantaged IRA. When asked why, many (43%) younger adults reported that they just haven't gotten around to it, due to lack of time or patience. In comparison, the inability to find additional dollars to save is the most common obstacle to saving for those in their prime savings years (35-54) who are juggling multiple expenses such as daycare, mortgages and saving for college.

"The reality is that the cost of retirement continues to increase, thanks to rising health care costs, longer lifespans and inflation," said Carney. "IRAs can play a critical role in helping Americans boost their savings from 401(k)s or other accounts, for a better chance to save the money they'll need to live the retirement they want. The key is to make saving for retirement automatic and more affordable while taking the guesswork out of selecting an appropriate investment."

To help, Fidelity recently introduced the new SimpleStart IRA, which can help both younger and mid-life investors save automatically for retirement or complement an existing savings program.

A SimpleStart IRA offers investors:

1) An easy way to start saving early. With a regular investing plan, all account opening fees and the minimum investment requirement ($2500) are waived¹, eliminating the need to amass a lump-sum for the initial investment.

2) Monthly investment amounts as low as $200². Smaller automatic monthly contributions can help investors to pay themselves first.

3) One-fund solutions. If assembling a diversified portfolio³ is a challenge, a lifecycle fund may be appropriate. Investors may select Fidelity Freedom Funds^®4 based on their target retirement date to get an age-appropriate, predetermined asset allocation strategy that becomes more conservative as the fund's target date approaches.

About the Survey

A telephone survey was conducted for Fidelity Investments by Opinion Research Corporation International among a national probability sample of 1,847 American household financial decision-makers. Interviews were completed between January 6 - 10, 2005. The margin of error is +/- 3% and results were tested at the 95 percent confidence level.

About Fidelity Investments

Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $2.1 trillion, including managed assets of $1.1 trillion as of December 31, 2004. Fidelity offers investment management, retirement planning, brokerage, human resources and benefits outsourcing services to more than 19 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.

Please carefully consider any fund's investment objectives, risks, charges and expenses before investing. A free prospectus is available from Fidelity. Read it carefully before you invest or send money.

# # #

Fidelity Brokerage Services, LLC, Member NYSE, SIPC

100 Summer Street, Boston, MA 02110

¹ IRA Brokerage account fee is eliminated (except SIMPLE IRA.) Fund expenses and brokerage commissions still apply. Depending on your situation, low‐balance, short‐term trading and account closing fees may apply.

² Non-Fidelity funds and certain Fidelity funds not eligible.

³ Diversification does not guarantee profit or protect against a loss on a declining market.

⁴ Performance of the Freedom Funds depends on that of their underlying Fidelity funds. These funds are subject to the volatility of the financial markets in the U.S. and abroad and may be subject to the additional risks associated with investing in high yield, small cap and foreign securities.