Reflects Key Investor Insights from 180,000 Retirement Income Plans

BOSTON, April 28, 2005 -- As the industry continues to introduce new retirement products and services, Fidelity Investments today outlined 10 best practices gained from conducting 180,000 retirement income plans as part of its Fidelity Retirement Income Advantage^SM program. Launched last June, the program is designed to help pre-retirees and retirees better plan, invest and manage their retirement finances.

"Over the past year, we've seen an unprecedented level of interest by customers in the income planning process," said Jeff Carney, president, Fidelity Personal Investments. "They're engaged and they want to play a more active role in creating a better retirement. In developing 180,000 income plans, we've helped investors become better prepared. The following are 10 basic, yet often ignored strategies for retirement finances that we have gathered through our experience:"

	1.	Consider Maxing Out and Catching-up in Your 401(k) and IRA
	2.	Save Now for More Later
	3.	Make Your Asset Mix Match You
	4.	Stretch Your Salary
	5.	Create Your Own Income Stream
	6.	Don't Withdraw Too Much Too Soon
	7.	Create a Realistic Budget
	8.	Expect and Plan for the Unexpected
	9.	Stay on Track
	10.	Mix and Match the Smartest Moves for You

Make It Work While You're Still Working

Investors in their peak earning years should consider making retirement savings a top priority by taking full advantage of employer-sponsored retirement plans and IRAs, reducing expenses whenever possible and maintaining an age-appropriate portfolio.

According to Fidelity survey statistics, roughly one in 10 employees invests the full amount allowable each year in their 401(k)¹. Fidelity found that customers in or near retirement who started early and consistently took advantage of available savings opportunities, including employer matches and "catch-up" provisions in their 401(k)s and IRAs, were better prepared for retirement.

These investors were also interested in learning how simple tradeoffs, such as holding on to their car for a few extra years once it has been paid off, could reduce their expenses and enhance their ability to continue saving.

Many were also more receptive to understanding the two common mistakes of asset allocation -- being overly cautious or taking excessive risks when deciding how much of their retirement savings to invest in cash, stocks or bonds. Two-thirds of those who have come to Fidelity for income planning guidance have changed or plan to change their asset allocations to better reflect their age, goals and risk tolerance².

Make It Last As Long as You Do

For a healthy couple retiring today at age 65, there is a 50 percent chance that one of them will reach age 92³. The majority of those who completed Fidelity's retirement income planning process over the past year were interested in stretching their retirement savings, creating additional income, and making sure their withdrawal strategies were on target.

While Americans generally don't think about working in retirement, Fidelity is finding that many are planning to work to some degree for several good reasons. Fidelity Income Planning Specialists report that some investors are postponing retirement to take advantage of added income and continued health care benefits while others want to close the gap between their initial Social Security distributions and the time employer pension payments will begin. Fidelity also found that many investors were interested in replacing their regular paycheck with guaranteed lifetime income, including "self-made pensions" that may be provided by annuities⁴.

A large number of those who developed an income plan underestimate their longevity and have adjusted their expected savings withdrawal rates to better reflect their retirement budget. Fidelity has demonstrated for many customers how lower withdrawal rates in the early years of retirement could lead to greater long-term success.

Make It Count To Live the Lifestyle You Want

According to Fidelity, those investors who achieve the retirement lifestyle they want, most often create a detailed, realistic budget, understand and plan for rising health care costs and other financial contingencies and monitor their plan annually to stay on track.

Surprisingly, two-thirds of pre-retirees have not developed a budget for their retirement⁵. Over the past year, Fidelity has helped customers accurately reflect their retirement income and expenses, based on the lifestyle they expect. A large number of investors had also underestimated future medical costs and as a result, one in four has purchased supplemental health coverage or long-term care insurance⁶. To monitor how their actual activity compares to their retirement income plan, customers in retirement are starting to utilize Fidelity's income management account to help them easily track all their income and expenses.

"Making the transition from saving for retirement to living the retirement you want requires more than a one-step solution," added Carney. "Fidelity has found that the most confident investors have implemented multiple strategies and monitor those strategies over time to help extend income, control spending, and maximize savings."

For more information on how to build and manage a retirement income plan, investors can call 1- 800 FIDELITY, visit one of Fidelity's 101 Investor Centers located nationwide, or logon to Fidelity's Retirement Resource Center at www.fidelity.com/retire.

About Fidelity

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 March 31, 2005. Fidelity offers investment management, retirement planning, brokerage, and human resources and benefits outsourcing services to more than 19 million individuals and institutions as well as through 5,500 financial intermediary firms. 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.

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Fidelity Brokerage Services LLC, Member NYSE, SIPC,
100 Summer Street, Boston, MA 02110

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

¹ Building Futures V, Fidelity Investments 2004.
² Fidelity Retirement Income Advantage Planning Program Satisfaction Results, December 2004
³ America's Lifetime Income Challenge, Fidelity Investments, August 2003.
⁴ Guarantees are subject to the claims-paying ability of the issuing insurance company.
⁵ Fidelity Investments Retirement Transition Study, December 2004
⁶ Fidelity Retirement Income Advantage Planning Program Satisfaction Results, December 2004