DENVER…September 26, 2007…The majority of financial planners want products and services that will facilitate discussions regarding retirement income planning with their clients, according to a new Financial Planning Association® (FPA®) study on financial planners' attitudes and perceptions about retirement income planning opportunities.

The study, 2007 FPA Financial Planner Attitudes and Perceptions about the Retirement Income Distribution Market, sponsored by Fidelity Investments® and produced by the Diversified Services Group, Inc. (DSG), found that financial planners understand the potential of retirement income planning for their businesses. In fact, almost half of the respondents (47 percent) expect between 10 and 30 percent of their growth will come from serving retirement income and planning needs. And over the next year, more than half anticipate that at least 25 percent of their new clients and assets will come from IRA rollover activity alone.

The study also found that a significant portion of financial planners' clients are already retired, and these advisers expect that to accelerate over the next five years. This shift will significantly impact advisers' time and resources as clients start to focus on income distribution and adequacy over accumulation and total return. From an income standpoint, financial planners who charge a fee based on assets under management or custody are likely to find themselves spending more time working for clients who generate less revenue. This may accelerate the trend toward a "fee for service" based model. Advisers are already anticipating this trend, with more than 40 percent expecting their fees for service to increase as clients continue to retire.

According to Nicholas A. Nicolette, CFP®, president of FPA, "The resources financial planners value most — in light of the increased retirement income business — are ones that enable and facilitate their communication and conversations with clients. Planners recognize that these resources are key to facilitating the conversations that allow them to better align their financial planning services with their clients' needs while increasing the proportion of client assets that they oversee."

"The simple fact is that millions of Americans rely on advisers for retirement planning, and that number will likely increase as the Baby Boomers begin to shift their focus from accumulation to distribution in retirement," said Gary Gallagher, senior vice president, Fidelity. "This study reveals that planners see the wave of retirement income planning business coming and they are looking for the resources to help them meet the needs of their clients and establish a growing and profitable practice focused on retirement income planning."

Jim Sholder, a Principal with DSG, said, "What is becoming increasingly clear is that planners want to talk about retirement income planning with the millions and millions of Americans for whom retirement is a reality instead of a dream. Equally important is this fact: Those who support financial planners must provide planners with the tools and technology that will help them make sure their clients don't outlive their assets or spend down their nest eggs too quickly."

Three dominant themes emerged from the study with a fourth that will bear watching over time. They are:

• Financial planners would benefit from becoming expert in "IRA rollovers" given the growth in that market as Americans "retire" and seek advice regarding retirement income planning.
• Financial planners are considering and implementing creative ideas to make their client referral networks more effective. Some are pursuing a clientele they believe others will turn to for retirement income advice while others are actively discussing the type of referrals they seek with their existing clients.
• Financial planners are considering a selective expansion of their professional networks. They are most interested in tax and legal professionals that can generate referrals as well as supplement their expertise--allowing them to focus their efforts on building their client relationships without increasing their overhead.
• Heavy reliance on a relatively small base of existing clients can ultimately limit the rate of new client growth. Recognizing this, some financial planners appear to be experimenting with traditional mass marketing techniques. The effectiveness of these experiments appears marginal and mixed.

About the survey: On behalf of FPA and Fidelity Investments, the Diversified Services Group (DSG) conducted an online survey with randomly selected FPA members in June, 2007. The survey received completed responses from 753 FPA members and data are representative of the FPA population with a +/-3 percent margin of error. The research is targeted to institutional members and studies what retirement income products and services financial planners are using or want to use in their practices. An executive summary of the study will be distributed to FPA members who participated in the study this fall and the full study will be available for $5,000 for FPA institutional members later this year. FPA will publish articles developed around the study's top findings in its Solutions magazine and other publications.

About the Financial Planning Association
The Financial Planning Association® (FPA®) is the leadership and advocacy organization connecting those who provide, support and benefit from professional financial planning. FPA demonstrates and supports a professional commitment to education and a client-centered financial planning process. Based in Denver, Colo., FPA has over 100 chapters throughout the country representing more than 28,000 members involved in all facets of providing financial planning services. Working in alliance with academic leaders, legislative and regulatory bodies, financial services firms and consumer interest organizations, FPA is the community that fosters the value of financial planning and advances the financial planning profession. For more information about FPA, visit www.FPAnet.org or call 800.322.4237.

©2008 The Diversified Services Group, Inc., All rights reserved