Fidelity’s® Guaranteed Income Direct Solution Available Nationally, Enabling Employees to Convert Retirement Savings Into Lifetime Income

• New Digital Solution Allows Employees to Convert 401(k), 403(b) or 457(b) Savings into Immediate Income Annuity
• Solution Meets Growing Market Demand for Workplace Annuity Options and Expands Fidelity’s Retirement Income Services

Fidelity Investments^®, the nation’s retirement leader¹, announces the broad availability of Guaranteed Income Direct, a new solution allowing employees to convert all or a portion of their retirement savings – from a 401(k), 403(b) or 457(b) – into an immediate income annuity to provide consistent, pension-like payments² throughout retirement.

Retirement preparedness is a source of financial stress for employees: 79% are worried they won’t have enough money to last their lifetime³, and 85% feel employers should take more responsibility in helping them prepare for retirement⁴. As such, guaranteed income solutions within workplace retirement plans have become increasingly popular. Fidelity research shows the number of retirees and pre-retirees deciding to stay in plan past their retirement date has continually increased over the past 10 years⁵, with 65% of participants expressing interest in having guaranteed income options in their workplace plans.⁶ For employers, the feelings are mutual: 81% of plan sponsors⁷ would prefer to give retirees the flexibility to stay in plan and withdraw assets throughout their retirement years.

“A key challenge for employees as they transition from saving for retirement to living in retirement is ensuring there’s enough predictable income to cover essential expenses,” says Keri Dogan, senior vice president, Financial Wellness and Retirement Income Solutions at Fidelity. “Many people feel anxious about how to generate income in retirement and want to reduce the risk of outliving their assets. Through solutions such as Guaranteed Income Direct, individuals can move into retirement with a greater sense of financial security, knowing they’ll be better able to cover their everyday expenses.”

A guaranteed income solution can help ensure the ability to cover essential expenses in retirement, particularly for employees who may not be able to do so through other predictable sources of income alone, such as Social Security and pensions. Guaranteed Income Direct allows employees to set up pension-like payments by purchasing an immediate income annuity through an insurer selected by an employer. The solution offers access to lifetime income for employees at all savings levels, with the flexibility to convert all or a portion of one’s retirement plan savings – regardless of where their money is saved – into monthly income based on their personal needs. In addition, savings not converted can remain in the workplace savings plan.

One of Fidelity’s objectives for Guaranteed Income Direct was to create a seamless digital experience for all employees. To accomplish this, Fidelity worked with middleware provider Micruity, Inc.⁸ to create a cutting-edge, digital first experience for participants. Additionally, employers can choose their preferred insurer to include in their Guaranteed Income Direct benefit. Currently, MetLife, Pacific Life, Prudential Financial and Western & Southern Financial Group⁹ are available on the platform, with additional insurers to be added in the future.

Guaranteed Income Direct is the latest addition to Fidelity’s growing portfolio of products and solutions for employers to help their employees transition from saving for retirement to living in retirement. Fidelity’s retirement income services are designed to help all employees, no matter where they are in their retirement journey – from investing for retirement to generating income while living in retirement. Additional details can be found at http://go.fidelity.com/RIS.

About Fidelity Investments 

Fidelity’s mission is to strengthen the financial well-being of our customers and deliver better outcomes for the clients and businesses we serve. With assets under administration of $11.5 trillion, including discretionary assets of $4.4 trillion as of September 30, 2023, we focus on meeting the unique needs of a diverse set of customers. Privately held for 77 years, Fidelity employs more than 73,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.

Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.

Past performance is no guarantee of future results.

Annuity guarantees are subject to the claims-paying ability of the issuing insurance company.

Participants should carefully consider all the available options and the applicable fees and features of each before moving their retirement assets.

Fixed annuities available through Guaranteed Income Direct are issued by third-party insurance companies which are not affiliated with any Fidelity Investments company. A contract’s financial guarantees are solely the responsibility of and are subject to the claims-paying ability of the issuing insurance company.

Income annuities available as plan distribution options are selected by the plan’s fiduciaries and sold and issued by third-party insurance companies which are not affiliated with any Fidelity Investments company. Fidelity Health Insurance Services, LLC (“FHIS”) may receive a fee from the issuing insurance company; however, FHIS does not directly or indirectly solicit, negotiate, or sell any annuities available as plan distribution options. A contract’s financial guarantees are solely the responsibility of and are subject to the claims paying ability of the issuing insurance company.

Non-affliation: The third parties mentioned herein and Fidelity Investments are independent entities that are not legally affiliated.

Immediate income annuities have no or limited access to assets.

Views expressed are of the date indicated, based on the information available at that time, and may change based on market or other conditions. Fidelity does not assume any duty to update any of the information.

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Fidelity Brokerage Services LLC, Member NYSE, SIPC 

900 Salem Street, Smithfield, RI 02917

1126314.1.0 

© 2024 FMR LLC. All rights reserved

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¹ This statement is based on the results of two independent media surveys. Fidelity ranked first in DC assets under administration and participants as of September 30, 2019 in *Pensions & Investments*' annual Defined Contribution Record Keepers Survey; and first in total recordkeeping assets and participants as of December 31, 2019, in *PLANSPONSOR's* annual defined contribution Recordkeeping Survey. 

² Annuity guarantees are subject to the claims paying ability of the issuing insurance company. In a defined benefit pension plan, pensions are guaranteed by the employee's employer unless the employer transferred the liability to a third-party insurance company. Also, unlike pensions, annuities must be purchased and have associated costs and expenses. 

³ EBRI Retirement Confidence Survey, 2021. 

⁴ Willis Towers Watson Global Benefits Attitudes Survey, 2020. 

⁵ Among pre-retirees and retirees who hold a minimum of $50k in their 401(k) balance on Fidelity’s recordkeeping platform. Fidelity Workplace Investing, as of December 31, 2022. 

⁶ Top three box of a five-point scale, among participants ages 50 and over. Fidelity Retirement Income Study, July 2023. 

⁷ Fidelity Employer Survey: Retirement Income Services and Experiences, December 2021. 

⁸ You are leaving Fidelity.com for another website. The site owner is not affiliated with Fidelity and is solely responsible for the information and services it provides. Fidelity disclaims any liability arising from your use of such information or services. Review the new site’s terms, conditions and privacy policy, as they will be different from those of Fidelity’s sites. 

⁹ You are leaving Fidelity.com for another website. The site owner is not affiliated with Fidelity and is solely responsible for the information and services it provides. Fidelity disclaims any liability arising from your use of such information or services. Review the new site’s terms, conditions and privacy policy, as they will be different from those of Fidelity’s sites.

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