Monster/Fidelity Survey Reveals Positive Outlook Among Nation's Job Changers; High Awareness of Financial Options Signals New Trend Toward Keeping Retirement Savings Working
BOSTON and MAYNARD, Mass., Aug 15, 2002 (BUSINESS WIRE) -- A recent national survey from Fidelity Investments(R) and Monster(R) reveals that despite mixed feelings about the current job market, many American workers who plan a job change during the next year are positive about their chances of finding a new job.
Of the more than one quarter of American workers (28 percent) planning to change jobs over the next year, those saving long-term expressed optimism along with a mindful approach to managing their finances during the transition. Of those surveyed, four out of five imminent job changers (82 percent) believe they will find a new job opportunity in less than six months.
"We are still in the midst of a difficult economic environment, but it's encouraging to see workers beginning to regain their confidence in the job market and about securing new employment opportunities," said Steve Pogorzelski, president of Monster, North America. "When people change jobs, it's important that they are aware of all of their options and take the necessary steps from not only a career management standpoint, but also a financial one."
"With more than 40 million(1) workers expecting to change jobs during the next year, it's important that they recognize that every move counts, especially with their retirement savings," said Tracey Esherick, executive vice president, Fidelity Investments. "With today's economic pressures, it's tempting for job changers to take an early distribution from their retirement savings during a transition, but those who cash out risk losing nearly half of their hard-earned dollars to taxes and penalties."
According to the Employee Benefit Research Institute, a majority of job changers receiving a lump-sum distribution through 1998 cashed out at least a portion of their retirement savings(2). By contrast, recent data from the 2002 Fidelity/Monster survey reports that more than 80 percent of imminent job changers who haven't yet made a withdrawal from their retirement savings over the past year say they are not likely to tap their retirement savings.
"Our survey indicates that the tides may be shifting away from cashing out toward options that keep retirement savings working, such as rolling savings over to an IRA," added Esherick. "This is a key learning, as consolidating retirement savings in an IRA gives job changers flexibility and control to actively manage their long-term investments."
In an effort to educate workers on important financial decisions associated with a job change, Fidelity and Monster created an online 401(k) Rollover Center, which features content designed to help users evaluate their options for managing their retirement savings during a job transition. Since the site's launch in June, more than 20,000 visitors have used the popular online resource, which contains links to information on Fidelity.com, including step-by-step assistance for transferring assets to a Rollover IRA.
About the Survey
A telephone survey was conducted for Fidelity Investments by Opinion Research Corporation International among a national probability sample of 3046 adults, comprising 1519 men and 1527 women 18 years of age and older, living in private households in the continental United States. The results are based on a national sample of 670 adults in the labor force who reported being likely or very likely to change full-time employers within 12 months (Job Changers). An emphasis was placed on a national sample of 293 Job Changers who reported having an employer-sponsored retirement plan either with a current or former employer (401(k) Job Changers). Interviews were completed during the period July 5-15, 2002. Results are significance tested to the 95% confidence level and reported with a margin of error of +/- 4%.
About Fidelity Investments
Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $1.5 trillion, including managed assets of $817.7 billion as of June 30, 2002. Fidelity offers investment management, retirement planning, brokerage, human resources and benefits outsourcing services to 17 million individuals and institutions as well as through 5,500 financial intermediaries. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, one of the largest mutual fund supermarkets and a leading online brokerage firm. For more information about Fidelity Investments, visit www.fidelity.com.
Monster, headquartered in Maynard, Mass., is the leading global online careers property and flagship brand of TMP Worldwide Inc. (NASDAQ: TMPW) recording over 46.6 million unique visits during the month of July 2002 according to independent research conducted by I/PRO. Monster connects the most progressive companies with the most qualified career-minded individuals, offering innovative technology and superior services that give them more control over the recruiting process. The Monster global network consists of local content and language sites in the United States, United Kingdom, Australia, Canada, the Netherlands, Belgium, New Zealand, Singapore, Hong Kong, France, Scotland, Germany, Ireland, Spain, Luxembourg, India, Italy, Sweden, Norway, Denmark, Switzerland, and Finland. Monster is the official online career management services sponsor of the 2002 Olympic Games and 2002 and 2004 U.S. Olympic Teams. More information about Monster is available at www.monster.com or by calling 1-800-MONSTER.
About TMP Worldwide
Founded in 1967, TMP Worldwide Inc., with more than 8,500 employees in 33 countries, is the online recruitment leader, the world's largest Recruitment Advertising agency network, and one of the world's largest Executive Search and Executive Selection agencies. TMP Worldwide, headquartered in New York, is also the world's largest Yellow Pages advertising agency and a provider of direct marketing services. The company's clients include more than 90 of the Fortune 100 and more than 490 of the Fortune 500 companies. In June 2001, TMP Worldwide was added to the S&P 500 Index. More information about TMP Worldwide is available at www.tmp.com.
Special Note: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve certain risks and uncertainties, including statements regarding the company's strategic direction, prospects and future results. Certain factors, including factors outside of our control, may cause actual results to differ materially from those contained in the forward- looking statements, including economic and other conditions in the markets in which we operate, risks associated with acquisitions, competition, seasonality and the other risks discussed in our Form 10-K and our other filings made with the Securities and Exchange Commission, which discussions are incorporated in this release by reference.
TMPW/Monster is an independent company and is not affiliated with Fidelity Investments.
Editor's Note: Additional survey data is available upon request.
Fidelity Brokerage Services, LLC
Member NYSE, SIPC
(1) Based on data from a 2002 Fidelity Investments survey of American workers and Bureau of Labor Statistics: The Employment Situation, June 2002
(2) EBRI Notes, Lump-Sum Distributions: An Update, July 2002
Kevin Mullins, 978/461-8751
Fidelity Corporate Communications