Fidelity’s® New Retirement Transition Services Helps Pre-Retirees Shift More Confidently Into Retirement

Workplace offering helps people tackle key health and wealth decisions as they approach retirement, including monthly income, Social Security and medical coverage

BOSTON – Fidelity Investments® today announced Retirement Transition Services, a new offering within its Plan for Life participant experience to help both employers and their pre-retiree employees navigate the complex health and wealth decisions people face as they transition into retirement, such as how to create lasting retirement income, how to claim Social Security, and how to find and pay for quality health care coverage. With approximately 8,000 Americans turning 65 each day1 – a common age to retire – most employers agree it’s important to assist pre-retirees in the years leading up to this significant milestone2.

“Employers tell us they want to help pre-retirees understand how to both convert their savings into lasting income and secure quality health coverage in retirement,” said Chris Herman, senior vice president of Fidelity’s Workplace Marketing, Solutions, and Experience Group. “In response, we developed Retirement Transition Services to assist people through these crucial decisions and help them create a plan to live more securely throughout the next phase of their life.”

Fidelity services 3.8 million actively employed participants3 in workplace retirement plans ages 50 through 64. The company’s pre-retiree offering pulls together its years of experience, innovative technology and guidance capabilities to support these employees at a time when they need it the most.

Fidelity Retiree Income Solutions Help Translate Savings into Retirement Income
After decades of working and saving for the future, shifting to taking income in retirement can be a complex proposition, both emotionally and financially. To help employees better prepare, Retirement Transition Services offers professional account management and an engaging suite of participant services and investment products to help create an income stream that will last. Help is made available to employees over the phone, through live consultations with representatives at the workplace, at our 180 investor centers nationwide, and through educational workshops and on-demand webinars.

The company also offers comprehensive tools including Retirement Income Planner which helps participants approaching retirement develop a plan and analyze income, expenses and assets to help identify steps they can take to best prepare. Also, Fidelity Income Strategy Evaluator®, which helps customers identify a strategy that may meet their income needs in retirement. In addition, the guidance also helps employees determine the impact Social Security will have on their monthly income, including what age they would like to begin collecting payments.

Helping Retirees Find Health Care Coverage in Retirement
In its annual study, Fidelity found that an average couple will need at least $220,000 to cover medical expenses during retirement4, likely one of their biggest expenses. However, more employers are paring back or eliminating retiree medical coverage due to escalating costs.

Fidelity and the Exchange Solutions business of Towers Watson, which operates the nation’s leading private Medicare exchange, began offering Retiree Health Transition Services to Fidelity plan sponsor clients earlier this year. Already more than 100,000 retirees are benefitting from it. The service is available to both existing retirees and pre-retirees at employers transitioning from employer-sponsored retiree medical insurance to individual, private insurance options. In 2014, the service will be extended to include all employers, regardless of whether or not they subsidize or sponsor retiree medical benefits.

Guidance is provided to individuals by licensed benefit advisors who offer assistance navigating the exchange environment and selecting private insurance from national and regional providers based on specific medical needs, status of Medicare eligibility, desired level of coverage, financial situation, and geography, all to help individuals secure quality coverage at a price they can afford.

“Each employee is different and will face unique challenges in retirement,” said Herman. “Fidelity’s new offering blends participant data, technology and a thoughtful approach to educational support to help ensure employees enter their retirement years as confidently as possible.”

New Offering Part of Plan for Life Workplace Guidance Experience
Retirement Transition Services is part of Plan for Life, Fidelity’s workplace guidance experience. Plan for Life helps employees at all stages of their careers, from just starting out to pre-retirees, by offering education on topics that matter to them the most, such as creating a retirement income plan and health care costs. This guidance experience can be accessed through dedicated telephone representatives, online, and in-person. For many pre-retirees, Fidelity offers in-person consultations that may include a spouse or family member.

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About Fidelity Investments
Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of $4.2 trillion, including managed assets of $1.8 trillion, as of August 31, 2013. Founded in 1946, the firm is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and many other financial products and services to more than 20 million individuals and institutions, as well as through 5,000 financial intermediary firms. For more information about Fidelity Investments, visit

2 Fidelity Investments Client Panel Study August 2013 (73%)
3 Includes all Fidelity PWIS defined contribution participants, including tax-exempt, as of June 30, 2013
4 Fidelity’s annual Retiree Health Care Cost Estimate, May 15, 2013

Investing involves risk, including risk of loss.

Guidance provided by Fidelity is educational in nature, is not individualized and is not intended to serve as the primary or sole basis for your investment or tax-planning decisions.

IMPORTANT: The projections or other information generated by Fidelity’s Income Simulator (“the Tool”) regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.

Retirement Income Planner and Income Strategy Evaluator are educational tools.

Fidelity Brokerage Services LLC, Member NYSE, SIPC
900 Salem Street, Smithfield, RI 02917

Fidelity Investments Institutional Services Company, Inc.
500 Salem St., Smithfield, RI 02917

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