Fidelity Introduces Five Strategies to Help Advisors
Adapt Their Practice to Focus More on Retirement Income Planning

BOSTON, April 24, 2007 -- Fidelity Investments today introduced a new report that shows advisors who offer retirement income planning services have found that clients who build a plan are more satisfied, consolidate more assets with them and provide more referrals for new business.

The report, Adapting a Practice for Retirement Income Planning, reveals that those advisors who have built retirement income plans for their clients have realized a 50 percent increase in "very satisfied" clients. Seventy-seven percent of those same clients indicated they would be willing to move all of their assets to one advisor and 95 percent said they would refer someone to the advisor.¹ According to the report, this success shows that advisors are able not only to address the challenges they are likely to face when evolving to a business model focused on helping clients withdraw their assets, such as a potential decline in compensation, but to thrive amid this shift, as well.

"The simple fact is that millions of Americans rely on an advisor for retirement planning, and that number will likely increase as the boomers begin to shift their focus from accumulation to distribution in retirement," said David L. Liebrock, executive vice president, Fidelity Investments. "Our report shows that those advisors who acquire the expertise necessary to provide retirement income planning services have positioned themselves to capture a larger share of their existing clients' assets and attract new clients."

The report is being made available by the three Fidelity businesses that serve advisors and brokers -- Fidelity Investments Institutional Services Co. (advisor.fidelity.com), National Financial (nationalfinancial.com) and Fidelity Registered Investment Advisor Group (ria.fidelity.com).

Based on in-depth research with advisors and individual investors, the Fidelity report helps advisors to better understand the drivers of the shifting retirement landscape and the challenges they are likely to face when evolving to a business model focused on helping clients withdraw their assets. The report demonstrates that advisors are clearly in a position to build profitable income planning-focused practices and presents "Five Key Strategies" designed to help them adapt their practices to capture the opportunity.

Understanding the Challenges Facing Advisors

In its report, Fidelity identifies three primary drivers of the changing retirement landscape -- rising health care costs, the shift toward greater individual responsibility for financing retirement, and the aging population. The changing landscape is creating challenges for advisors as their clients begin asking them to shift from helping them accumulate assets to helping them distribute those savings to create lifetime income. For advisors to successfully evolve their business models and expand their skill sets, they first need to fully understand and confront the three primary challenges facing them:

	1.	Increased complexity -- Retirement income planning not only requires analyzing clients' expectations and complete financial details, it demands an understanding of the key risks facing retirees, such as rising health care costs. In fact, according to the Fidelity report, 60% of Americans between 55 and 70 indicated they would like to discuss critical illness insurance, long-term care, longevity insurance and/or reverse mortgages with their advisor.2
	2.	Greater time intensity -- Building retirement income plans requires deeper, more time-intensive levels of exploration than typically required when creating savings plans. Fidelity estimates that this may translate into a 20% increase in time spent per client.3
	3.	Changing practice economics -- Building a profitable model for a business in which assets are shifting from accumulation to distribution requires an understanding of how retirement income planning may impact advisors' revenue. Advisors' compensation opportunity may decline by up to 48%4 over a 10-year period for those who remain focused on retirement savings.

"As millions of Americans transition into or begin preparing for retirement, advisors have begun to feel the effects of a shift that will likely change the nature of their business forever," said Liebrock. "Now is the time for advisors to offer retirement income planning products and services to their clients -- before someone else does."

Fidelity's "Five Key Strategies"

The Fidelity report presents "Five Key Strategies" for helping advisors successfully address the changing retirement market. Fidelity believes that in order to thrive in this market advisors must advance their capabilities and take the following steps:

	1.	Become proficient in all things retirement and create a retirement specialist brand
	2.	Use health care knowledge as a differentiator
	3.	Combine income planning with effective client management strategies
	4.	Evolve to a more efficient, profitable business model
	5.	Refine client acquisitions strategies for retirement income planning

"Although there is some uncertainty created by the changing landscape, advisors need to realize that the business basics for operating a successful practice have not changed," said Liebrock. "By identifying and adopting best practices, seeking industry expertise and support, and successfully building a retirement brand, advisors have a real opportunity to establish a growing and profitable practice focused on income planning."

About Adapting a Practice for Retirement Income Planning

Fidelity developed this report as part of its ongoing commitment to provide advisors with the resources and insights they need to effectively meet the growing client demand for retirement income planning, and, subsequently, help strengthen client relationships and grow their businesses. The report is supported by the Fidelity Advisor 2006 Survey of Investors at Retirement. Conducted by NFO Research on behalf of Fidelity from July 5 to July 12, 2006, this online survey included 813 investors between the ages of 55 and 70 with investable assets of $250,000 or more. The margin of error for this study is +/- 3.4% at the 95% confidence level.

About Fidelity's Advisor/Broker Businesses

Fidelity has three businesses that service the advisor/broker markets: Fidelity Investments Institutional Services Company, Fidelity Registered Investment Advisor Group and National Financial. Together, these businesses provide advisors/brokers access to one of the broadest ranges of products, services, technology and platform solutions in the financial services industry. As of February 28, 2007, Fidelity's three intermediary businesses administer and manage more than $1.1 trillion in assets on behalf of over 135,000 advisors/brokers. For more information about Fidelity Investments Institutional Services Company, please visit https://advisor.fidelity.com. For more information about National Financial, please visit www.nationalfinancial.com. For more information about Fidelity Registered Investment Advisor Group, please visit http://ria.fidelity.com.

About Fidelity Investments

Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $3.0 trillion, including managed assets of $1.4 trillion as of February 28, 2007. Fidelity offers investment management, retirement planning, brokerage, and human resources and benefits outsourcing services to more than 23 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, the largest mutual fund supermarket and a leading online brokerage firm. For more information about Fidelity Investments, visit www.fidelity.com.

¹Fidelity Advisor 2006 Survey of Investors at Retirement.

² Fidelity Advisor 2006 Survey of Investors at Retirement.

³ Analysis conducted using data from "Channel Comparison: Advisor Time Spent on Tasks," Cerulli Associates, 2005.

⁴Fidelity Investments analysis. Forty-eight percent is over a 10-year period and is the difference between a book comprised of 100% accumulator clients versus 100% retirees. See page 18 of Adapting a Practice for Retirement Income Planning for data, assumptions and methodology.

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Clearing, custody or other brokerage services may be provided by National Financial Services LLC, or Fidelity Brokerage Services LLC, Members NYSE, SIPC.

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