US - Fidelity Investments' posted an increase in administered assets in defined contribution and defined benefit pension plans to an all-time high of US$729.9bn (e567.4bn) at the end of 2004, up 14.9% from the previous year.
Fidelity said record levels in its retirement, pension, human resources and benefits administration business were marked by the addition of more than 1500 new corporate and tax-exempt clients.
In its defined contribution business, Fidelity’s administered assets in 401(k), 403(b) and 457 plans were US$647.6bn at the end of 2004, up 13.8% compared with US$569.1bn at the end of 2003.
The firm also increased defined benefit pension plans and other retirement assets to a record US$102.4bn at the end of 2004, an increase of 20.8% compared with US$84.8bn in 2003.
Fidelity said last year marked a “significant shift” in focus in the financial services industry with more attention on helping retirees successfully transition from saving for retirement to living off those savings in retirement, while managing assets for continued growth.
“Even as the first wave of 76m baby boomers rapidly approaches retirement, we know that most investors have not yet developed an income plan, causing them to be at risk of outliving their savings,” said Peter Smail, president of Fidelity’s employer services company.
“Our retirement income advantage service addresses this critical planning need and helps investors with the complex task of monitoring and managing their complete financial situation throughout retirement.”
Fidelity provides retirement, benefits and human resources outsourcing to approximately 19m American employees and retirees, as at December 31, 2004.
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