Workers continue to view their 401(k) as a beneficial retirement savings vehicle and on average are seeing higher account balances as a result.

•		Average participant account balances rose 10 percent to $61,000 from $55,000 in 2003, and are at their highest since 1999.
•		After a few years of slight declines, average plan participation rates in workplace savings plans have stabilized, with 66 percent of eligible employees contributing in 2004 and 2003.
•		The average deferral rate in 2004 was approximately 7 percent, and has remained steady since 2001.

While the average 401(k) participant is allocating assets appropriately, further assessment of the data revealed a significant opportunity to improve participants' asset allocations.

•		On average, participants appear to allocate their assets appropriately with the percentage of assets in equities highest among individuals in their 30s (83%), and lowest among those in their 70s (41%).
•		When viewed at the individual level, however, the data showed that a significant number of participants may not have an appropriate exposure to equities. For example, 27 percent of participants in their 30's hold 100 percent of their assets in equities, and 12 percent hold no equities in their portfolios, which may not provide them with appropriate asset allocation to effectively pursue long-term gains and mitigate risk.
•		In addition, among all participants, 24 percent hold 100 percent equities and 14 percent hold no equities.

Plan sponsors are increasing plan investment options and providing asset allocation support.

•		Fifty-two percent (52%) of continuous plans increased their number of plan investment options during 2004, increasing the average number of options to 20.
•		Despite the increase in plan options, however, more than one in five participants (20%) continue to hold just one investment option which is not a lifecycle or blended fund.
•		The data showed that when the number of investment options held increases, participants generally experience less volatility in investment returns.
•		Plans offering Fidelity Freedom Funds increased to 78 percent, up from 72 percent in 2003 and the number of participants in these plans who hold Freedom Funds is now more than one in five.

About the Study
Building Futures VI is based on a comprehensive analysis of data of nearly 8.6 million participants in approximately 10,800 corporate defined contribution plans serviced by Fidelity Institutional Retirement Services Company at the end of 2004. The complete findings will be published in the sixth edition of Fidelity's Building Futures annual report, which will be available later this year.

For more complete information about any mutual funds available through Fidelity, including fees and expenses, please call or write Fidelity for free prospectuses. Please read them carefully before you invest.

Keep in mind, investing involves risk. The value of your investment will fluctuate over time and you may gain or lose money.

The Freedom Funds are managed by Strategic Advisors, Inc., a subsidiary of FMR Co.

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

^*Data as of 12/31/04 unless otherwise stated.