Pessimists Are Concerned About Long-Term Risks to Retirement
but Their Concerns Aren't Spurring Action to Plan and Prepare

BOSTON, Aug. 20, 2009 - Is the glass half full or half empty? New data released from Fidelity Investments^® today shows that how an investor answers that question may also indicate how prepared they are for retirement.

The data show that investors with a more pessimistic outlook are less likely than those with a more optimistic outlook to expect a comfortable lifestyle in retirement (61% of pessimists, 83% of optimists). They are also more likely to be concerned about risks to their retirement income, such as Social Security benefits being reduced (45% of pessimists, 33% of optimists). In addition, among married couples, pessimistic spouses are less confident in their ability to assume full financial responsibility for their joint household finances if necessary, while fewer optimists worry about this issue (61% of pessimists, 39% of optimists).

Despite these financial concerns, only 15 percent of pessimists have completed a detailed income plan to help guide their finances in retirement, compared to nearly twice as many optimists (27%).

These findings are part of new analyses of the optimism level and retirement planning behaviors of more than 1,000 husbands and wives who participated in Fidelity's 2009 Couples Retirement Study. In the study, respondents were asked to rate themselves on 10 separate statements¹ designed to assess each individual's optimism as a personality trait. Their scores were then overlaid with responses to questions about retirement readiness, planning behaviors and lifestyle expectations to determine any correlation. "

Going into the study, we anticipated that individuals with a more pessimistic outlook may be motivated by their concerns to proactively plan for retirement," said Joan Bloom, executive vice president, Fidelity Investments Life Insurance Company. "We were surprised, however, to find the opposite - that pessimists' concerns are not driving action that could help improve their financial situation and overall confidence levels."

The study also asked investors about their risk tolerance and approach to investing. The results show pessimists are less likely than optimists to take on risk with their investments, especially in relation to the ongoing market uncertainty. For example, pessimists are twice as likely as optimists (25% of pessimists, 12% of optimists) to invest with the goal of preserving money and will accept considerably lower returns, while optimists are more likely to invest with the goal of creating an equal balance of capital preservation and investing for returns (39% of optimists, 25% of pessimists). When asked about their initial reaction to the recent market volatility, twice as many pessimists as optimists report "feeling a sense of panic and wanting to pull out of the market" (22% of pessimists, 11% of optimists), while significantly more optimists than pessimists say their gut feeling was to "stay the course" (77% of optimists, 57% of pessimists).

While Behind in Preparedness, Pessimists on Track with Product Ownership

While pessimists lag behind their optimistic counterparts in a number of retirement planning and preparation-related activities, there is one area where both groups score relatively the same - retirement product ownership. When asked what retirement vehicles they currently own and which accounts they plan to rely on most in retirement, the data show that pessimists are on par with optimists, despite being behind overall in planning and preparation. For example, product ownership is similar among both groups for the following products:

•		401(k)s - (88% of pessimists, 89% of optimists)
•		Individual Retirement Accounts - (77% of pessimists, 79% of optimists)
•		Annuities - (48% of pessimists, 46% of optimists)
•		Pensions - (75% of pessimists, 71% of optimists)

When asked which account they planned to rely on most in retirement, both optimists and pessimists name their 401(k) as the most important retirement product (15% of pessimists, 22% of optimists) followed by their personal pension (13% of pessimists, 17% of optimists).

This data reflects that pessimists are taking positive financial action in using tax-advantaged retirement savings vehicles to help build income towards retirement, but need encouragement to plan more adequately to help ensure their future income needs can be met.

The Impact of Optimism and Pessimism on Retirement Planning as a Couple

In addition to showing the impact one's level of optimism or pessimism may have on his or her own retirement planning, the data provides some insight into the impact it may have on a married couple's retirement preparedness. When it comes to basic retirement planning, pessimists are less likely than optimists to report that both they and their spouse have wills prepared (52% of pessimists, 62% of optimists). In addition, pessimists are more likely than optimists to rely on their spouse to know where such important papers are kept (13% of pessimists, 9% of optimists).

An individual's outlook may also be impacting the level of communication with his or her partner. While the majority of both groups report they "always discuss important matters, such as a job layoff, with their spouse," pessimists are less likely to do so than their optimistic counterparts (91% of pessimists, 98% of optimists). A larger number of pessimists also report arguing with their spouse about financial matters, with more than half (55%) saying they argue occasionally or frequently, vs. 39 percent of optimists, which may be a barrier to their planning success.

"A husband and wife's individual outlooks on life and financial planning can have a significant impact on their retirement readiness," explains Bloom. "Our research shows that in 89 percent of couples, one partner is generally more optimistic than the other and the more optimistic they are, the more involved they are in the retirement decision-making process. In this situation, ongoing communication becomes even more critical to their overall financial success as a couple."

For more information from Fidelity concerning financial and retirement preparedness, investors can call 1-800-FIDELITY, visit www.fidelity.com, or meet with a representative at one of Fidelity's Investor Centers nationwide.

About the Study

The 2009 Fidelity Investments Couples Retirement Study was conducted online in April 2009 by Richard Day Research, an independent research firm, with a national sample from Knowledge Networks of 502 couples, including 157 couples from the 2007 Fidelity Investments Couples Retirement Research Study, who meet the following criteria: Married couples with household income of at least $75K or investable assets of $100K or more; age 45 to 72; and plan to retire from their full-time profession.

About Fidelity Investments Life Insurance Company (FILI)

Established in 1987, Fidelity Investments Life Insurance Company (FILI), and for New York residents, Empire Fidelity Investments Life Insurance Company^®, New York, N.Y., develop and market their own insurance products, in addition to offering access to a number of insurance products from other from well-known carriers. FILI maintains an A+ (strong) rating from S&P and an A+ (superior, 2nd highest) rating from A.M. Best.

About Fidelity Investments

Fidelity Investments is one of the world's largest providers of financial services, with assets under administration of more than $2.9 trillion, including managed assets of $1.4 trillion as of July 31, 2009. Fidelity offers investment management, retirement planning, brokerage, and human resources and benefits outsourcing services to over 20 million individuals and institutions as well as through 5,000 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 Fidelity.com.

¹Questions based on Scheier, M. F., Carver, C. S., & Bridges, M. W. (1994). Distinguishing optimism from neuroticism (and trait anxiety, self-mastery, and self-esteem): A re-evaluation of the Life Orientation Test. Journal of Personality and Social Psychology, 67, 1063-1078.

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Neither Richard Day Research nor Knowledge Networks, Inc. is affiliated with Fidelity Investments.

Registered trademarks and service marks appearing herein are the property of FMR LLC.

The experience of the couples who responded to the 2009 Fidelity Investments Couples Retirement
Study may not be representative of the experiences of all investors.

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