Overview- 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.
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Investment Pathways and Drawdown options
The Investment Pathways initiative from the Financial Conduct Authority (FCA) is designed to ensure that anyone with a Pension Drawdown Account should have access to simple, good-value investments that broadly match their retirement income goals.
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 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:
- Uncrystallised funds pension lump sum (UFPLS) – full or partial
- Tax-free cash – full or partial
- Ad hoc taxable lump sums
- Regular income via in-scheme drawdown
Our regular 'in-scheme' income drawdown option
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. However, there are transaction costs which cover the costs involved in buying and selling a fund’s underlying investments. These are also included in the fund price. For more information, please see our Costs and charges tool.
- 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
Responds strategically to market conditions and up to half of the fund can be held in more defensive investments e.g. government bonds.
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.
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 diversified range of assets including defensive assets.
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.