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© 2011 FMR LLC.583236.1.0
The new retirement generation:Implications for financial planning
Peter Drake,Vice President, Retirement and Economic ResearchFidelity Investments Canada ULC
© 2011 FMR LLC.583236.1.0
For Investment Professional use only
Read a fund’s prospectus before investing. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. Investors will pay management fees and expenses, may pay commissions or trailing commissions, and may experience a gain or loss.
Views expressed regarding a particular company, security, industry or market sector are the views only of that individual as of the time expressed and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Such views are subject to change at any time based upon markets and other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Any reference to a company is for illustrative purposes only; it is not a recommendation to buy or sell nor is it necessarily an indication of how the portfolio of any Fidelity Fund is invested. ©2011 Morningstar research Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or redistributed; and (3) is not warranted to be accurate, compete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future returns.
The presenter (s) is not registered with any securities commission and therefore cannot provide advice regarding securities© Copyright 2011 FMR LLC. All rights reserved. All trademarks appearing in this presentation belong to FMR LLC. Reproduce in part or in whole by any means prior to written consent of Fidelity Investments is forbidden.
© 2011 FMR LLC.583236.1.0
Agenda
Their retirement goals: How will they get there?
Implications for structuring income in retirement
1
2
3
Pressures facing today’s retirement generation
© 2011 FMR LLC.583236.1.0
Boomer’s perceptions of retirement mostly positive
Source: 2010 Fidelity Retirement Survey, Wordle.net. Non-retirees’ (45 and over) perceptions of retirement. Note: In a word cloud the size of the word corresponds with the frequency of responses for a particular term
© 2011 FMR LLC.583236.1.0
So why do we need a retirement plan?
Source: Fidelity Investments Canada ULC
NEW PRESSURE ON CANADA’S RETIREES
1
3
Global financial crisis & ongoing uncertainty
Changes to Canada’s retirement income system
2 The transition to a more active retirement
© 2011 FMR LLC.583236.1.0
Every investment decision over the next five yearswill come back to the global financial crisis
0
10
20
30
40
50
60
70
80
90
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
VIX
clo
sing
pric
e U
S$
Source: Chicago board of options exchange, VIX Index measuring stock market volatility. As at March 24, 2011 (daily).
Lehman Brothers, AIG Merrill Lynch
U.S. elections,Auto industry concerns,Consumer confidence lows
Subprime crisis begins
Concern about sovereign debt, strength of recovery Japan
Tsunami
CBOE VIX VOLATILITY INDEX OR “FEAR” INDEX
© 2011 FMR LLC.583236.1.0
Emerging issues in the new decade
COMMODITY PRICES
THE MIDDLE EAST AND NORTH AFRICA THE UNEXPECTED
Source: The Economist. Covers from Q1 2011.
© 2011 FMR LLC.583236.1.0
Prolonged volatility taking its toll
The way I invest has changed for good23%
34%
25%
41% I am not going to invest in anything but safe investments for a long time
There is no point in following financial markets because there is simply too much volatility and I can’t keep up with it
I don’t trust the investment options available to me right now
Source: 2010 Retirement Survey sponsored by Fidelity Investments Canada ULC and conducted by The Strategic Counsel.
PERCENTAGE OF RETIREES & NON-RETIREES WHO AGREED WITH THE FOLLOWING STATEMENTS
© 2011 FMR LLC.583236.1.0
As a result, investors remain conservative
Industry Gross Sales Mix (%)EQUITY FUNDSLONG-TERM FUNDS
Shar
e of
Gro
ss S
ales
(%)
Bond funds
Balanced funds
Equity funds
20% 19%
59%
37%
18%
44%
Equity income
Canadian equity
International equity
U.S. equity
23%
34%30%
13%
29%32%
27%
12%
Money markets funds
Long-term funds
47%
53%
71%
29%
10%
20%
30%
40%
50%
60%
70%
2008
2009 & 2010
Source: Investor Economics, January 2010, 2011 Monthly Insight Reports. Percentages may not add to 100% due to rounding.
0%
80%
© 2011 FMR LLC.583236.1.0
$200,000
$220,000
$240,000
$260,000
$280,000
$300,000
$320,000
$340,000
Jun 08 Sep 08 Dec 08 Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep 10 Dec 10 Mar 11
Portf
olio
val
ueBut being overly conservative in the recovery may have already affected their retirement plans
Source: Datastream, March 30, 2011. Balanced portfolio 50% S&P/TSX Composite Index, 35% DEX Universe Bond Index, 15% DEX 91 day T-Bill. All bond portfolio consists of 100% DEX Universe Bond Index.
S&P/TSXTrough
$300,000 invested in a
balanced portfolio
Remained invested in a
balanced portfolio
Sold at low, invested 100%
in bonds
Most aresomewherein-between
© 2011 FMR LLC.583236.1.0
Searching for answers
How will I make up the shortfall
in my savings?
Will I be able to enjoy the same standard of
living?
What happens if the markets
crash again?
Should my asset allocation
be more conservative?
Should I take out less
Money?
?Will I be able to retire?
© 2011 FMR LLC.583236.1.0
I would have been worse off with my investments during this period of volatility if it were not for the advice and recommendations of my advisor
The value of advice has been recognizedbut there are opportunities
42
37
47
14 1416
0
10
20
30
40
50
60
Total Non-Retirees Retirees
Perc
enta
ge o
f res
pond
ents
Net Agree Net Disagree
Source: 2009 Retirement Survey sponsored by Fidelity Investments Canada ULC and conducted by The Strategic Counsel.
© 2011 FMR LLC.583236.1.0
The transition to a more active retirement
© 2011 FMR LLC.583236.1.0
Lifetime Income
Wealth Building
Too old to start over, too young to retire completely
Marriage Home Promotion/ Children University Promotion/ Empty Parental Retirement Turning LostPurchase Job Change Planning Job Change Nest Care 75 Spouse
Living in Retirement
Buildinga Portfolio
Getting Started
Planning for Multiple Goals
TRANSITION
Lifetime Savings
Source: Fidelity Investments Canada ULC. For Illustrative purposes only
10 MILLION CANADIANS REDEFINING THEIR LIVES
© 2011 FMR LLC.583236.1.0
Help clients to envision their retirement
0
4
8
12
16
20
24
Daily activities prior to retirement
Hou
rs in
a d
ay
Work
Sleep
Active & passiveleisure
Source: Fidelity Investments Canada ULC. For Illustrative purposes only
HOW WILL YOUR CLIENTS REPLACE 8 HOURS A DAY?
What will they do after dinner?
Travel (Everyday?)
Work (Difference?)
Volunteer (What?)
Socialize (Where?)
Relax (How?)
Common answers
© 2011 FMR LLC.583236.1.0
Canadians working later in life among allage groups
43%
14%
4%
11%
4%
50%
22%
5%
36%
0%
10%
20%
30%
40%
50%
60%
60 to 64 years 65 to 69 years 70 years and over
1980 2000 2009
Source: Statistics Canada. 2010
Labour force participation by age, year
© 2011 FMR LLC.583236.1.0
Why are Canadians “working” in retirement?
Source: Fidelity Investments Canada ULC
REASONS TO BECOME A WORKING RETIREE:
1
3
2
4
They will need to work for financial reasons
They will respond to the looming demand for older workers
They enjoy the routine, social relationships and satisfaction of working
“Pure” retirement is not satisfying –golf and gardening will not be enough
© 2011 FMR LLC.583236.1.0
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
1976 1981 1986 1991 1996 2001 2006
S&P/
TSX
Com
posi
te In
dex
Ja
n. 1
976
= 10
0
5%
6%
7%
8%
9%
10%
11%
12%
Parti
cipa
tion
rate
: Can
adia
ns a
ge 6
5+ (%
)
The working retiree – for love or money?
Source: Participation rates – Age 65+: Statistics Canada, Table 282-0002: Labour force survey estimates (LFS), by sex and detailed age group; Canada; Participation rate; Both sexes; 65 years and over (rate). 2010 participation rate represents an average of January to May 2010. S&P/TSX Composite Index returns: Morningstar Encorr.
THE 2000-2002 BEAR MARKET MARKED A TURNING POINT IN CANADIAN SENIORS’ WORKFORCE PARTICIPATION RATES
Participation rate, Canadians 65+ (RHS)
S&P/TSX Composite IndexJan. 1976 = 100 (LHS)
© 2011 FMR LLC.583236.1.0
The indebted retiree…
Own67%
Rent33%
Source: 2010 Retirement Survey sponsored by Fidelity Investments Canada ULC and conducted by The Strategic Counsel.
67%
33%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Mortgage free Still have mortgage
RETIREES’ PRIMARY RESIDENCE
NEARLY HALF OF CANADIANS EXPECT TO HOLD, OR INFACT HELD SOME LONG TERM DEBT AT RETIREMENT
Percentage of respondents
© 2011 FMR LLC.583236.1.0
-100%
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
< $30K $30K to $50K $50K to $80K $80K +Income bracket ($)
% o
f res
pond
ents
.
Spending more Spending the sameSpending Less
Current retirees telling us they don’t want to downsize
Source: 2010 Retirement Survey sponsored by Fidelity Investments Canada ULC and conducted by The Strategic Counsel.
PERCENTAGE OF RETIREES REPORTING HOUSEHOLD SPENDING LEVELS LESS THAN, EQUAL TO OR GREATER THAN IN PRE-RETIREMENT
© 2011 FMR LLC.583236.1.0
A rising ratio of older to younger Canadians will put pressure on all aspects of society
0
5
10
15
20
25
30
35
40
45
50
1972 1980 1988 1996 2004 2012 2020 2028 2036 2044 2052Year
Age
dep
ende
ncy
ratio
(%)
Projected
2011
Source: C.D. Howe Institute Backgrounder, “No elixir of youth: Immigration cannot keep Canada young”, September, 2006.
Baseline age dependency ratio (percent)
More pressure on workers to supporta growing number
of retirees
© 2011 FMR LLC.583236.1.0
Employers around the world are responding
Source: LIMRA, Individual Financial Product News, Volume 15, Number 2, 2008.
‘Oldie’ supermarkets, with over 50 staff; absenteeism went down, customer satisfaction went up
Netto retailer
Rehiring their own retirees for their expertise and provide flexible work arrangements in return
Canon & Mitsubishi
Introduced a ‘demographic fitness test’ to gauge clients’ attractiveness to older workers
Automakers implementing new initiatives aimed at enabling employees to stay productive on the line longer
‘Elder’ stores are 18% more profitable vs. its regular outlets (lower turnover, less pilfering)
Adeco
Ford & Chrysler
B&Q Hardware
© 2011 FMR LLC.583236.1.0
Bottom line:
A planned retirement date isn't a fixed retirement date
50% OF RETIREES LEFT THEIR JOBS EARLY ACCORDING TO FIDELITY RESEARCH
1 Health
3 Loss of enthusiasm for their job
2 Elimination of a job
Intending to work is not a substitute for saving, budgeting
Three of the main reasons cited are:
Source: 2010 Retirement Survey sponsored by Fidelity Investments Canada ULC and conducted by The Strategic Counsel.
© 2011 FMR LLC.583236.1.0
Changes to Canada’s retirement income system
© 2011 FMR LLC.583236.1.0
Used with permission of cartoonist group.
© 2011 FMR LLC.583236.1.0
Changes to CPP/QPP may alter the advice we give
Payments reduced 0.6% per month before 65 (gradually beginning 2012)
Payments increase 0.7% per month after 65 (gradually beginning 2011)
UPTAKE AFTER 65
UPTAKE BEFORE 65
Source: Canada Department of Finance, Fidelity Investments Canada. Table assumes all changes have been phased in and compares the new rules to old rules using 2011 rates.
AgeActuarial adjustment CPP annual amount
DifferenceNew Rules. Old Rules New Rules. Old Rules
70 142.00% 130.00% $16,358 $14,976 $1,382
65 100.00% 100.00% $11,210.04 $11,210.04 –
60 64.00% 70.00% $7,373 $8,064 -$691
© 2011 FMR LLC.583236.1.0
Deciding when to take CPP/QPP a holistic decision
No “right” answer but here are some things to consider Longevity
Defined benefit pension plan
Guaranteed Income Supplement
Essential expenses
Asset allocation
Survivor benefits
Spender or saver?
Number of low income earning years
© 2011 FMR LLC.583236.1.0
Retirement in Canada is changing
Intended for the those without a company pension plan or self-employed
Administered by financial institutions with a “fiduciary” role
Large pools of capital, low cost
Portability of benefits
Source: Fidelity Investments Canada ULC.
POOLED RETIREMENT PENSION PLANS (PRPP)
© 2011 FMR LLC.583236.1.0
In retirement, yesterdays goals are today’s reality
FINANCIALSITUATION
REALITY
+ ASPIRATIONS
=FULFILLMENT
INRETIREMENT
PROVIDE CLIENTS WITH A PLAN TO SOLVE THIS EQUATION
Source: Fidelity Investments Canada ULC.
© 2011 FMR LLC.583236.1.0
Agenda
Their retirement goals: How will they get there?
Implications for structuring income in retirement
1
2
3
Pressures facing today’s retirement generation
© 2011 FMR LLC.583236.1.0
27%25%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Non-Retirees Retirees
OPPORTUNITY FOR
ADVISORS
Many do not have a retirement plan to help face these challenges
Source: 2010 Retirement Sentiment Survey sponsored by Fidelity Investments and conducted by the Strategic Counsel.
INCIDENCE OF A WRITTEN FINANCIAL PLAN IN RETIREMENT
OPPORTUNITYFOR
ADVISORS
© 2011 FMR LLC.583236.1.0
Peter Lynch once said…
“There’s always something
to worry about”
© 2011 FMR LLC.583236.1.0
Revisiting the 5 key risks to retirement income planning
THAT CAN DERAIL THE SUCCESS OF A LIFETIME INCOME PLAN
Longevity Asset Allocation
Health care costs
Inflation
WithdrawalRate
© 2011 FMR LLC.583236.1.0
55
60
65
70
75
80
85
90
1981 2009
Year
Age
A retirement “paradox”
For illustrative purposes only. Retirement age is represented by median retirement age in Canada, all retirees, both sexes. Retiree life expectancy is represented by Canadian life expectancy at age 65, both sexes. Source: Statistics Canada.
Typical retirement:17 yrs
Typical retirement:23 yrs
82 Life expectancy 85
65 Median retirement age 62
CANADIANS ARE RETIRING EARLIER AND LIVING LONGER THAN EVER BEFORE
© 2011 FMR LLC.583236.1.0
Revisiting the 5 key risks to retirement income planning
THAT CAN DERAIL THE SUCCESS OF A LIFETIME INCOME PLAN
Longevity Asset Allocation
Health care costs
Inflation
WithdrawalRate
© 2011 FMR LLC.583236.1.0
But will retirees have to worry about inflation again?
© 2011 FMR LLC.583236.1.0
Almost 20 years of low inflation
-2-10123456789
1011121314
Q1 1978 Q1 1982 Q1 1986 Q1 1990 Q1 1994 Q1 1998 Q1 2002 Q1 2006 Q1 2010
Tota
l inf
latio
n (%
) yea
r-ove
r-yea
r
Source: Datastream, Statistics Canada. Quarterly. As of Q1 2011.
Historical inflation (%), year over year, quarterly
Bank of Canada target band
© 2011 FMR LLC.583236.1.0
EVEN LOW INFLATION CAN DAMAGE PURCHASING POWER
$50,840 was the average total expenditure by senior couple households (both age 65+), according to Statistics Canada’s Survey of Household Spending in 2008 report. All other numbers were calculated based on hypothetical 2, 3 and 4% rates of inflation to show the effects of inflation over time; actual inflation rates may be more or less. Source: Fidelity Investments Canada ULC.
$5,000
$15,000
$25,000
$35,000
$45,000
$55,000
Today 5 10 15 20 25
Years from retirement start date
Portf
olio
val
ue ($
)
2.00%
3.00%4.00%
$50,840
$24,281
$19,071
$30,989
Even low inflation can reduce your purchasing power
© 2011 FMR LLC.583236.1.0
Revisiting the 5 key risks to retirement income planning
THAT CAN DERAIL THE SUCCESS OF A LIFETIME INCOME PLAN
Longevity Asset Allocation
Health care costs
Inflation
WithdrawalRate
© 2011 FMR LLC.583236.1.0
Every retirement portfolio needs these elements
PRINCIPAL PROTECTION
GUARANTEED INCOME
VARIABLE INCOMEINFLATION PROTECTION
TAX EFFICIENCY
GROWTH
Savings accounts Money market Short-term bonds
CPP/QPP Annuities DB pensions (careful!)
Dividend stocks/mutual funds
Systematic withdrawal plans
Inflation protected Bonds Equities/dividends Commodities (to a point)
Capital Structure TSWP Withdrawal strategies
Equities Commodities Dividends
BUT THE ALLOCATION WILL DEPEND ON THE CLIENT
© 2011 FMR LLC.583236.1.0
Historically, it has paid off to diversify equitiesto reduce risk
Canadian cash (short-term securities)
Canadian bonds
Canadian equities
U.S. equities
International equities
Emerging market equities
Canadian cash (short-term securities) 100%
Canadian bonds 15% 100%
Canadian equities -5% 26% 100%
U.S. equities 5% 18% 64% 100%
International equities 1% 14% 51% 57% 100%
Emerging market equities 6% 12% 61% 54% 58% 100%
CORRELATION BETWEEN ASSET CLASSES 1981 - 2010
Source: Morningstar EnCorr, 1981 - 2010.
© 2011 FMR LLC.583236.1.0
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
1926 1933 1940 1947 1954 1961 1968 1975 1982 1989 1996 2003
Bon
d Yi
eld
Period of Falling Rates(1981-2009)
Avg Return = 8.8%
U.S. yields at the low end of history
Avg Yield = 4.8% (1926-2009)
Period of Rising Rates(1941-1981)Avg Return = 3.3%
2009
INTERMEDIATE-TERM TREASURY BOND YIELD (1926-2009)
Intermediate-term treasury bond represented by IA SBBI US IT Govt Index. Source: Ibbotson Associates, FMRCo (MARE) as at December 31, 2009.
© 2011 FMR LLC.583236.1.0
In a rising interest rate environment, a little equities can go a long way
6%8%
9%11%
3%
14%
4%5%
7%
10%
0%
2%
4%
6%
8%
10%
12%
14%
16%
100% Bonds 30% Stocks / 70%Bonds
50% Stocks / 50%Bonds
70% Stocks / 30%Bonds
100% Stocks
Tota
l Ret
urn
(%)
Avg. ReturnStd. Dev.
U.S. BOND AND STOCK PORTFOLIOS (1941 – 1981)*
Source: Ibbotson Associates, FMRCo (MARE) as of 9/30/09. *This period has been chosen to illustrate the effect on a portfolio in a period of rising interest rates.
© 2011 FMR LLC.583236.1.0
Income security should involve multiple solutions
A COMBINATION OF PLANNING, PRODUCT BREADTH, AND RETIREMENT EXPERTISE CAN DELIVER THE SOLUTIONS YOUR CLIENTS ARE SEEKING
Source: Fidelity International Limited, Fidelity Investments Canada ULC
Income for life
Acc
ess
to c
apita
l MUTUAL
FUNDS
CASH
FIXED INCOME
ANNUITY
© 2011 FMR LLC.583236.1.0
Revisiting the 5 key risks to retirement income planning
THAT CAN DERAIL THE SUCCESS OF A LIFETIME INCOME PLAN
Longevity Asset Allocation
Health care costs
Inflation
WithdrawalRate
© 2011 FMR LLC.583236.1.0
Prudent withdrawal rates after a steep market decline can extend the life of a portfolio
$100,000
$1,000,000
$10,000,000
1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008
4% Withdrawal Rate 5% Withdrawal Rate6% Withdrawal Rate 7% Withdrawal Rate8% Withdrawal Rate 9% Withdrawal Rate10% Withdrawal Rate
Source: Fidelity Investments. Hypothetical value of assets held in an untaxed account of $500,000 invested in a portfolio of 30% Canadian stocks, 10% US stocks, 10% Overseas stocks, 35% bonds and 15% short-term investments with inflation-adjusted withdrawal rates as specified. This hypothetical illustration uses historical monthly performance from January 1972 through December 2009: Canadian stocks, US stocks, Overseas stocks and Short-term investments are represented by S&P/TSX Composite Total Return Index, S&P 500 TR Index C$,MSCI EAFE GR Index C$, and DEX 91-Day T-Bills, respectively. Bonds are represented by DEX Long Bond Overall Index prior to January 1980 and DEX Universe Index from January 1980 forward. This chart is for illustrative purposes only and is not indicative of any investment. Past performance is no guarantee of future
IF YOU HAD RETIRED IN 1972 WITH $500,000
© 2011 FMR LLC.583236.1.0
The challenges of advising your clients after the crisis
Source: Assumes a balanced portfolio. 50% S&P/TSX Composite Index, 35% DEX Universe Bond Index, 15% 91 D T-bill
Stock market peak: Stock market low: 2 years after the low:
June 18, 2008 March 9, 2009 March 9, 2011
$300,000 $224,236 $328,186
AnnualRetirement income@ 4%
$12,000 $8,969 $13,127
9 months later
Less than 2 years later
-$3,031 +$1,127Difference in income
© 2011 FMR LLC.583236.1.0
THAT CAN DERAIL THE SUCCESS OF A LIFETIME INCOME PLAN
Longevity Asset Allocation
Health care costs
Inflation
WithdrawalRate
© 2011 FMR LLC.583236.1.0
Components of total health care spending growth in Canada
$37 $37
$42
$13
$23
$15
$0
$20
$40
$60
$80
$100
$120
$140
1984 2004
Real increase in private spending
Real increase in public spending
Growth due to population growth
Growth due to inflation
Health spending in 1984
ACCOUNTING FOR SPENDING GROWTH
Source: CIHI, Exploring the 70/30 split. How Canada’s Health Care system is Financed. 2005
In b
illio
ns o
f dol
lars
© 2011 FMR LLC.583236.1.0
Breakdown of out of pocket health care costs
44%
17%
21%
19% Nursing homes, long term carefacilities etc.
Dental Care
Prescribed Drugs
Other Health Care Services(Hospital stays, physician care,personal supplies etc)
Source: Canadian institute for health information.
© 2011 FMR LLC.583236.1.0
Agenda
Their retirement goals: How will they get there?
Implications for structuring income in retirement
1
2
3
Pressures facing today’s retirement generation
© 2011 FMR LLC.583236.1.0
Designing a retirement income plan is a holistic process
Essential expenses
Discretionary expenses
Lifetime sources
of income
GAP IN COVERAGE:1. Convert other assets for cash flow using systematic withdrawals or annuities2. With remaining assets, plan discretionary funding
Source: Fidelity Investments Canada ULC.
© 2011 FMR LLC.583236.1.0
Retirement expenses most forget to include
HOUSING MAINTENANCE
CHILDREN
TRANSPORTATION
PERSONAL CARE
CONSUMER GOODS
Roof, driveway Plumbing, utilities
Wedding Education
New car Repairs
Prescription drugs Dental care
Wear and tear Being a grandparent
Source: Fidelity Investments Canada ULC.
© 2011 FMR LLC.583236.1.0
Retirees rely on multiple sources of incomeand so must financial services
Pension and Investment income
Earned income
Other income
Government sources (OAS & CPP/QPP)
AVERAGE CANADIAN COUPLE AGE 65+
26%
6%
29%
39%
Source: Statistics Canada, 2007
MANY CANADIANS WILL BE RESPONSIBLE FOR A SUBSTANTIAL PORTION OF THEIR RETIREMENT INCOME
© 2011 FMR LLC.583236.1.0
50%more “very
satisfied” clients
77%of those did or
would consolidate
95%of those did
or would refer
Source: Fidelity Investments Institutional Service Company, Inc. Boston. Fidelity Advisor 2006 Survey of Investors at Retirement. Conducted by NFO Research on behalf of Fidelity, and included 813 investors between the ages of 55 and 70 with investable assets of US $250,000 or more.
U.S. ADVISORS BUILDING RETIREMENT INCOME PLANS HAVE EXPERIENCED
Benefits of helping clients with a retirement plan
© 2011 FMR LLC.583236.1.0
Five things every advisor should discuss with their clients
2.
Source: Fidelity Investments Canada ULC.
3.
4.
Retirement is about probabilities not averages
Planning to work in retirement is not a retirement plan
Majority of people in a nursing home never thought they’d live there
© 2011 FMR LLC.583236.1.0
In retirement, yesterdays goals are today’s reality
FINANCIALSITUATION
REALITY
+ ASPIRATIONS
=FULFILLMENT
INRETIREMENT
PROVIDE CLIENTS WITH A PLAN TO SOLVE THIS EQUATION
Source: Fidelity Investments Canada ULC.
© 2011 FMR LLC.583236.1.0
Fidelity’s commitment to you
Retirement income solutions
New research in retirement & capital markets
Investor seminars
Retirement Readiness Snapshot™ calculator
Public policy discussions
LEVERAGE OUR ADVISOR RESOURCES
Source: Fidelity Investments Canada ULC
© 2011 FMR LLC.583236.1.0
Fidelity looks forward to being your retirement partner
Source: Fidelity Investments Canada ULC.
EDUCATE
MANAGE
PLAN
INVEST
© 2011 FMR LLC.583236.1.0
Questions?
© 2011 FMR LLC.583236.1.0
Thank you!
FIDELITY LOOKS FORWARD TO BEING YOUR RETIREMENT PARTNER