15 Percent Consolidate After Experiencing Negative Market Impact

BOSTON, September 24, 2007 - New Fidelity Investments research released today shows that recent market volatility has prompted over half (55 percent) of Americans, who still hold workplace savings plans with prior employers, to re-examine their plan holdings. The study found that one-in-four Americans (26 percent) have at least one defined contribution account, such as a 401(k), with a former employer, having ended contributions to the account an average of seven years ago.

Additionally, the research showed that 15 percent of individuals who assessed their accounts still held with prior employers, and discovered they were negatively impacted by the recent market activity, took action by rolling over their assets to either an IRA or their current workplace plan. An additional eight percent changed the asset allocation of their plan holdings.

Those investors who rolled former workplace plan balances over to IRAs said they wanted greater control over their investments, as well as additional access to professional management and guidance as they continue to plan for retirement.

"This type of market environment serves as a wake-up call for investors to review their former workplace retirement accounts, ensuring they still meet their long-term savings goals, time horizon and risk tolerances," said Don Holborn, executive vice president, Fidelity Investments. "Consolidating 401(k)s from previous employers into an IRA can allow investors to more actively monitor and manage their investments as part of their overall retirement portfolio, an important practice regardless of market activity."

Reasons For Leaving Accounts Behind

According to the study, workers cite three primary reasons for not rolling over their retirement accounts upon changing jobs or retiring. Eighteen percent said they simply hadn't thought about them since leaving their former employer. Seventeen percent report having considered the options of rolling over to an IRA, into a new employer plan or cashing out, but had not yet made any decision. And another 17 percent did not feel they had the time, nor a strong enough understanding of the process, to move their former workplace account balances.

The average balance of workplace accounts still residing with former employers was reported to be $64,000, with nearly one-fifth (17 percent) of individuals surveyed reporting balances of more than $100,000. When asked specifically how their savings were invested, just over half (51 percent) did not know their specific funds or holdings.

Interestingly, when asked which financial assets and balances were of greatest concern during the recent stock market fluctuation, the number one answer was workplace savings plan balances, cited by 32 percent of Americans.

"While every investor must consider their own personal situation and goals when evaluating their retirement plans, consolidating retirement investments can often lead to a number of benefits. Some of those benefits may include increased variety in investment options, easier access and control to help ensure balanced asset allocation, long-term estate planning flexibility, as well as continued contribution opportunities and tax-advantaged growth," noted Holborn.

About the Fidelity Study

The Fidelity Investments IRA Rollover Study measured rollover opinions and behavior among a nationally representative sample of Americans who have a defined contribution plan with a former employer. An online survey of a national sample of 2,000 adult Americans was conducted by Synovate, an independent research firm, September 7-13, 2007.

About Fidelity Investments

Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $3.2 trillion, including managed assets of $1.5 trillion as of August 31, 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.

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