If you are an employee with a Fidelity workplace pension, please visit our Investment Pathways page. If you are a private investor and would like to know more about Investment Pathways please visit our Personal Investing website.

Members of contract-based and Master Trust workplace pensions administered by Fidelity have the option of taking a regular income from their pension, without having to transfer to another plan. They also have access to four new Investment Pathways for their drawdown (crystallised) savings in their Pension Drawdown Account. These are extra investment options designed around members' objectives for how and when they might want to use their pension savings.

Our full range of retirement income options for members are:

  1. Uncrystallised funds pension lump sum (UFPLS) – full or partial
  2. Tax-free cash – full or partial
  3. Ad hoc taxable lump sums
  4. Regular income via in-scheme drawdown
  5. Annuity purchase on the open market with support from Fidelity’s Retirement Service or the member’s own adviser.

Our regular 'in-scheme' income drawdown option

  • Choice of monthly, quarterly or annual payments, with three payment dates available.
  • No minimum payment.
  • No fees to set up or change payments.
  • Electronic payments, direct to a member's bank account.
  • Members can choose which fund their payments should come from.
  • Payment arrangements and transactions can be checked in PlanViewer.
  • Member receives alerts before savings run out.
  • Member receives an annual statement for their Pension Drawdown Account.

How members set up regular income and Investment Pathways

Decisions on regular income and drawdown investments are incorporated into the current telephone-based process.

During their call members are asked to make an active choice as to how the money in their Pension Drawdown Account is invested. All documents sent to members have been updated and rewritten to ensure they are as simple and clear as possible.

If a member chooses to take tax free cash (with or without setting up a regular income), the member will have assets transferred to a ‘notional’ Pension Drawdown Account with Fidelity.

The member will also need to make a decision over where the assets in their Pension Drawdown Account will be invested. Members will be able to choose any of the Investment Pathways alongside all the existing options available to them.

The Investment Pathways are designed exclusively for assets that are already in a Pension Drawdown Account; Investment Pathways will not be available to members who have not transferred assets to a Pension Drawdown Account.

Fidelity Investment Pathways at a glance

  • Fidelity's Master Trust Board and Independent Governance Committee have taken independent investment advice on the suitability of the Investment Pathways for members and will continue to do so.
  • There is no minimum investment amount.
  • Members have the option to choose one or more of the Investment Pathways during the phone call about their retirement income plans.
  • They can spread money over more than one Investment Pathway, move it from one to another, or choose an Investment Pathway for some of their drawdown money, and invest the rest in their own choice of funds from the range available through their plan.
  • Members can change their investments at any time in PlanViewer or by calling Fidelity.
  • There are no charges for switching into or out of an Investment Pathway or any other fund.
  • Each Investment Pathway represents a single fund solution investing in an underlying Fidelity fund.

Investment Pathway 1 - I have no plans to touch my money in the next five years

Invests in...

Fidelity Diversified Markets Fund.

Strategy

Aims for long-term risk-controlled growth with a broad range of assets.

Risk controls

Can respond strategically to market conditions and up to half of the fund can be held in more defensive investments.

Strengths

Core component of Fidelity’s FutureWise strategy.

Investment Pathway 2 - I plan to use my money to set up a guaranteed income (annuity) within the next five years

Invests in...

Fidelity Pre-Retirement Bond Fund

Strategy

Aims to preserve member’s annuity-buying power.

Risk controls

Hedges against movements in annuity rates by holding similar investments.

Strengths

Seven-year track record.

Investment Pathway 3 - I plan to start taking my money as a long-term income within the next five years

 

Invests in...

Fidelity Multi Asset Balanced Income Fund

Strategy

Aims for capital growth with a long-term income target of 3-5% a year.

Risk controls

Holds a broad range of assets, some of them relatively defensive.

Strengths

Benefits from Fidelity’s multi asset expertise.

Investment Pathway 4 - I plan to take out all my money within the next five years

Invests in...

Fidelity Cash Fund

Strategy

Aims to preserve value of member’s capital.

Risk controls

Holds liquid, short-term assets to guard against negative growth.

Strengths

Proven track record in capital preservation.