Fidelity Investments Launches Direct Guaranteed Income to Help Workers Convert 401 (k) and 403 (b) Savings into Retirement Annuities | New


BOSTON – (BUSINESS WIRE) – November 18, 2021–

Fidelity Investments today announced the announcement of Direct Guaranteed Income, a retirement income product that allows individuals to convert a portion of their 401 (k) or 403 (b) savings into an annuity to provide consistent payments similar to a retreat 1 throughout the retreat. With nearly eight million workers 2 on Fidelity’s workplace savings platform approaching retirement, Fidelity’s Guaranteed Direct Income responds to the growing interest 3 of employers and employees for an income annuity option. guaranteed income that is linked to the company’s retirement savings plan and provides direct access to guaranteed income products.

The growing demand for annuities as an option for distributing retirement savings is driven by several factors. First, as a growing number of employers 4 feel more comfortable that workers keep their savings in the company’s savings plan when they retire, employers feel more obligated. offer their employees the opportunity to transform some or all of their retirement savings into a reliable source of regular income. Additionally, recent research 5 indicates that 78% of workers are interested in putting some of their retirement savings into an investment option that would guarantee them a monthly income in retirement and help ensure they do not survive. to their savings. Finally, the passage of the SECURE law reduced the fiduciary risk for employers and made it easier for them to provide annuities as a pension plan distribution option.

“Making the transition from retirement savings to retirement is one of the most important transitions a person will make in their lifetime, and one of the biggest challenges people face during this process. transition is how to ensure that they have sufficient predictable income to cover their essential expenses. “said Keri Dogan, Senior Vice President, Retirement Solutions at Fidelity.” Our new Direct Guaranteed Income product gives employees a simplified option to use their retirement savings plan assets to create their own personal pension and provide them with a stable and reliable income stream to help cover their retirement expenses. ”

Fidelity Direct Guaranteed Income allows employers to offer their workers a simple immediate income annuity option, with institutional pricing and offered by the insurer of their choice, which is combined with digital support and tools to help workers determine the amount of guaranteed income that is right for them. Individuals have the flexibility to convert any amount of their retirement savings, regardless of where their money is saved (mutual funds, etc.) into guaranteed retirement income, depending on their personal needs. Savings not converted into an annuity can remain in the company savings plan. The entire experience is integrated into Fidelity’s employee benefits portal, which also includes training and support from Fidelity to help employees think through their options.

Direct Guaranteed Income is the latest addition to Fidelity’s growing portfolio of products and solutions for employers to help their employees transition from retirement savings to retirement life. Fidelity’s retirement income products are designed to help all employees develop a retirement income strategy, regardless of their savings level, including multiple offerings that integrate seamlessly with the online savings platform. workplace of a company. Additional details are available at

“Fidelity recognizes that every investor is unique and that individuals will approach retirement in their own way. Our broad portfolio of retirement income products and solutions is designed to provide workers with the flexibility and tools they need to build a retirement income plan that is right for them and can help them meet their specific needs in the future. retirement income, ”continued Dogan.

Scheduled to launch for select clients in the first half of 2022, Fidelity Guaranteed Income Direct will be widely available in the second half of 2022.

About Fidelity Investments

Fidelity’s mission is to inspire a better future and deliver better results for the clients and businesses we serve. With $ 11.1 trillion in assets under administration, including $ 4.2 trillion in discretionary assets as of September 30, 2021, we are focused on meeting the unique needs of a diverse set of clients: helping more of 38 million people to invest their own savings, 22,000 companies manage employee benefit programs, as well as provide more than 13,500 companies and wealth management institutions with investment and technology solutions to boost the growth. A private company for 75 years, Fidelity employs more than 52,000 associates who are focused on the long-term success of our clients. For more information on Fidelity Investments, visit

Before investing, consider the investment objectives, risks, fees and expenses of the funds. Contact Fidelity to obtain a prospectus or, if applicable, a summary prospectus containing this information. Read it carefully.

Annuity guarantees are subject to the claims settlement capacity of the issuing insurance company.

Keep in mind that investing involves risk. The value of your investment fluctuates over time and you can make or lose money.

Fidelity Brokerage Services LLC, NYSE Member, SIPC 900 Salem Street,

Smithfield, RI 02917

Fidelity Distributors Company LLC, 500 Salem Street,

Smithfield, RI 02917

National Financial Services LLC, NYSE Member, SIPC

245 Summer Street, Boston, MA 02110


© 2021 FMR SARL. All rights reserved.


1 Annuity guarantees are subject to the claims settlement capacity of the issuing insurance company. In a defined benefit pension plan, pensions are guaranteed by the employee’s employer unless the employer transfers the liability to a third-party insurance company. In addition, unlike pensions, annuities must be purchased and have associated costs and expenses.

2 Internal information based on Fidelity 401 (k) and 403 (b) participants aged 50 to 64, as of September 30, 2021.

3 Edelman Data and Intelligence (DxI) conducted the online survey on behalf of Nationwide from July 19 to August 4, 2021.

4 Fidelity Investments survey, May 2017.

5 Based on 744 responses to the 2021 Employee Benefits Research Institute retirement confidence survey.

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CONTACT: Corporate communication

(617) 563-5800

[email protected] Mike Shamrell

(617) 563-1996

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SOURCE: Fidelity Investments

Copyright Business Wire 2021.

PUB: 11/18/2021 08:25 / DISC: 11/18/2021 08:26


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