06.10.26
Fidelity Bets People Want Their 401(k)s To Look More Like Pensions
by: Anne Tergesen
Fidelity Investments plans to introduce a new retirement-focused target-date fund that combines traditional investing with pension-like guaranteed income. Beginning in early 2027, Fidelity’s new “Freedom Lifetime” funds will allow workers to gradually allocate part of their 401(k) savings to annuity contracts provided by New York Life and Nationwide. The move reflects growing demand from aging workers seeking more predictable retirement income. Starting at age 55, a portion of a participant’s bond allocation will be shifted into insurance contracts, reaching roughly 25% of assets by age 65. Between ages 59½ and 78, investors can convert some or all of that allocation into an immediate annuity that provides guaranteed monthly payments for life.
Read the full article on The Wall Street Journal