Fidelity Survey Finds Younger Higher Education Participants are as Conservative with Their Retirement Savings as Their Older Counterparts

Fewer than One in Four Indicate they have a Formal Investment Plan for Retirement

BOSTON – Fidelity Investments^®, a leading provider of not-for-profit workplace retirement savings plans to higher education employeesⁱ, today announced results of its Higher Education Generational Survey¹. The survey of approximately 600 higher education employees examined retirement saving and investing behavior across three generations, Generation Y (ages 21-32), Generation X (ages 33-46) and Baby Boomers (ages 47-65).

Nearly half (49%) of the higher education workers surveyed described themselves as “conservative” investors when it comes to retirement, regardless of age. In fact, younger employees were found to be using the same asset allocation strategies as their older counterparts, with Gen Y using a similar asset mix (50% stock, 35% bond/annuity and 15% cash) as Gen X and Baby Boomers.

“Time until retirement is one of the biggest factors that should be considered when determining asset allocation,” said John Ragnoni, executive vice president, Fidelity Tax-Exempt business. “While we recognize many investors are feeling cautious in these uncertain markets, the asset mix of a participant with decades until retirement should look very different from that of someone who is on the verge of tapping into his or her retirement savings. Fidelity's tools and education can help younger investors assess their risk profile to build a better foundation for their retirement.”

More than half (55%) of all higher education employees surveyed also say they consider themselves to be “beginners” at investing – including seven in 10 Gen Y (71%), half (50%) of Gen X and half (51%) of Baby Boomers. In addition, more than six in 10 (63%) are concerned they will not be able to live comfortably in retirement.

When it comes to tools and resources used to learn about retirement savings -- which can help alleviate such concerns – the survey shows Baby Boomers rely mostly on guidance from financial professionals (42%) and employer-provided education materials (37%). In contrast, Gen X relies primarily on educational materials from employers (37%) and online web sites (36%) and Gen Y relies more on friends and family (54%) and online planning tools (41%).

Most Participants Don’t Have a Formal Plan for Their Retirement Regardless of their Age
When asked to describe their personal plan for retirement, less than a quarter (24%) of the respondents indicated they had a formal plan in place. Even among Baby Boomers, only 27 percent said they had a formal plan.

When asked about their plans for retirement, 46 percent of respondents said they will delay retirement or never retire at all. The likelihood of delaying retirement was even greater among faculty with more than half (54%) indicating they will delay retirement or never retire. This trend was even higher among older faculty with 68 percent saying the same.

“Having a personal plan for retirement is more important than ever,” said Ragnoni. “This is especially true among boomers closest to retirement. Fidelity has helped millions of Americans transition from saving for retirement to creating a paycheck in retirement. For employers, helping employees prepare for retirement is essential to faculty and staff renewal.”

Retirement Guidance for Not-For-Profit Plan Sponsors and Employees
Fidelity offers a wide variety of resources to help higher education institutions provide retirement readiness assistance and guidance to their employees, including:
• Access to Fidelity investment professionals via phone, online, mobile or at the firm’s more than 160 U.S. Investment Centers
• Free help choosing from a wide variety of retirement and personal savings options
• Award-winning guidance² tools and savings calculators to help participants plan, invest and manage their assets
• Educational articles, Webcasts and online content about retirement planning

Fidelity serves more than 3.6 million not-for-profit plan participants in more than 2,000 workplace savings plans across higher education, health care and other institutions³.

About Fidelity Investments
Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of $3.4 trillion, including managed assets of more than $1.5 trillion, as of October 31, 2011. 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 www.fidelity.com.

The results of Fidelity’s 2011 Higher Education Generational Survey may not be representative of all higher education employees meeting the same criteria as those surveyed for this study.

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.

Fidelity, Fidelity Investments, and the Fidelity Investments & Pyramid Design logo are registered service marks of FMR LLC.

iBased on Q1 2011 data sourced from LIMRA and Fidelity Market Insights Group.

1Results of the 2011 Fidelity Investments Higher Education Generational Survey are based on an online survey conducted among a national sample of 595 benefits-eligible employees who work at colleges or universities (public and private) in the United States. Interviewing for this survey was completed during the period February 22 – March 4, 2011 by Versta Research, not affiliated with Fidelity Investments.

2 Corporate Insight e-Monitor Awards, 2010.

3 As of 9/30/11. The results of Fidelity’s 2011 Higher Education Generational Survey may not be representative of all higher education employees meeting the same criteria as those surveyed for this study.

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.

Fidelity, Fidelity Investments, and the Fidelity Investments & Pyramid Design logo are registered service marks of FMR LLC.

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

© 2011 FMR LLC. All rights reserved.

598809.1.0