Josephine Norton
Fidelity offers a range of pension solutions for institutional investors, including pension funds, investment management, and actuarial and benefits consulting. Their pension products are designed to meet the specific goals of plan sponsors, with options such as pension journey pools and market-based cash balance plans.
Fidelity also provides resources for individuals to understand and manage their workplace pensions, including information on how pensions are invested, contribution options, and tools to help individuals stay informed about their pension's progress toward their retirement income goals.
| Characteristics | Values |
|---|---|
| Type of account | Not technically an account |
| Who can get it | Offered by some employers and unions |
| Who contributes | Your employer contributes money on your behalf over time |
| How contributions are made | Your employer invests your money with the agreement that when you retire, you will receive a predetermined amount |
| Investment options | Company shares, government bonds and cash deposits |
| Self-select option | You can choose the funds yourself from the range available through your pension plan |
| Default option | The default investment for your plan is carefully selected by experts and monitored to help you build up savings for retirement |
| Flexibility | You have less flexibility in choosing what to invest in and when to withdraw |
| Longevity risk | A pension can help reduce the risk of outliving your savings |
| Federal insurance | Often protected by federal insurance (within certain limitations) by the Pension Benefit Guaranty Corporation (PBGC) |
What You'll Learn
- Fidelity's pension offerings are designed to meet plan sponsors' specific goals
- Fidelity's pension products include Pension Journey Pools and Market-Based Cash Balance plans
- Fidelity provides pension solutions with a broad range of individual turnkey, customised, and fully bundled options
- Fidelity's pension solutions include investment management, actuarial and benefits consulting, and fully managed administration
- Fidelity's pension offerings are available in a variety of formats, including self-select and default investment strategies
Fidelity's pension offerings are designed to meet plan sponsors' specific goals
Fidelity's investment management capabilities include both commingled pools and fully customizable solutions. Their actuarial and benefits consulting services provide comprehensive support for a suite of pension plan needs, including actuarial valuations, holistic plan design, and compliance consulting. The fully managed administration service ensures regular communication around planning, updates, and reports.
Fidelity also offers Pension Journey Pools, a comprehensive series of commingled pools designed to help plan sponsors achieve fully funded status in a cost-efficient manner. Another offering is the Market-Based Cash Balance (MBCB) plan, which combines features of both defined benefit and defined contribution plans.
Fidelity's pension offerings are flexible and can be customized to meet the unique goals and objectives of plan sponsors. Their outcome-oriented investment options, implementation strategies, and integrated solutions are tailored to address liability and de-risking. Fidelity also offers access to investment opportunities in digital assets, providing plan sponsors with a diverse range of options to meet their specific needs.
Overall, Fidelity's pension offerings are designed to provide plan sponsors with the tools and resources needed to achieve their specific goals, ensuring a secure and tailored approach to retirement planning.
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Fidelity's pension products include Pension Journey Pools and Market-Based Cash Balance plans
Pension Journey Pools
These are a series of commingled pools that aim to provide plan sponsors with a structured and cost-efficient path toward fully funded status. This offering provides a comprehensive solution, helping sponsors navigate the complexities of pension planning and ensuring they are on a sustainable path to meet their funding objectives.
Market-Based Cash Balance (MBCB) Plans
MBCB plans are often referred to as "hybrid" defined benefit plans. They combine the features of both defined benefit and defined contribution plans, offering the predictability of a pension with the portability of a 401(k). In an MBCB plan, participants receive a hypothetical account balance, which is credited annually with a pay credit (a percentage of their salary) and an interest credit. The interest credit is linked to the performance of specific investments, mirroring market indexes. This design allows for fluctuations in account balances based on market conditions, shifting some investment risk to the employee. MBCB plans offer a modern approach to retirement savings, providing a blend of predictability and flexibility. They are also portable, allowing employees to roll over their balance when changing jobs, a significant advantage over traditional pension plans.
Fidelity's pension products are tailored to meet the diverse needs of plan sponsors and participants, offering a range of options to help individuals and companies structure their retirement benefits effectively. These products aim to provide clarity and adaptability in retirement planning, ensuring that pension solutions are well-suited to the goals and circumstances of those saving for the future.
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Fidelity provides pension solutions with a broad range of individual turnkey, customised, and fully bundled options
Fidelity provides a range of pension solutions to meet the diverse needs of its clients. Its offerings are tailored to provide flexibility, customisation, and comprehensive support for effective retirement planning.
Fidelity's pension solutions are designed as individual turnkey, customised, and fully bundled options, allowing clients to choose the approach that best suits their unique circumstances. This flexibility ensures that individuals can tailor their retirement plans to align with their specific goals and preferences.
The individual turnkey option offers a straightforward approach, where experts carefully select and monitor funds on the client's behalf. This option provides peace of mind and is ideal for those who want a hands-off investment strategy.
For those who prefer a more personalised strategy, the customised option allows individuals to choose the funds that align with their long-term objectives. This self-select strategy empowers individuals to take control of their investment choices while still benefiting from Fidelity's guidance and resources.
Fidelity's fully bundled options include comprehensive support services such as actuarial and benefits consulting. Clients can receive assistance with a range of pension plan needs, including actuarial valuations, plan design, and compliance consulting. This option ensures that all aspects of an individual's retirement plan are carefully managed and optimised.
Fidelity also offers a variety of retirement account types, such as 401(k)s, IRAs, and Roth IRAs, each with unique advantages to help individuals maximise their retirement savings. With no fees or minimums to open a retail brokerage account, Fidelity makes it accessible for everyone to start planning for their future.
Additionally, Fidelity provides resources and tools to help individuals make informed investment decisions. Their intelligent technology and research capabilities enable clients to visualise and track their investment targets, empowering them to adjust their strategies as needed.
Whether through the turnkey, customised, or fully bundled options, Fidelity's pension solutions are designed to help individuals effectively plan for retirement, providing guidance and support every step of the way.
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Fidelity's pension solutions include investment management, actuarial and benefits consulting, and fully managed administration
Fidelity's pension solutions are designed to meet the specific goals of plan sponsors. Their approach to pension solutions focuses on the full spectrum of needs, with a broad range of individual turnkey, customized, and fully bundled options.
Fidelity's pension solutions include investment management, which offers a range of capabilities, from commingled pools to fully customizable solutions. They also provide actuarial and benefits consulting, offering comprehensive support for a suite of pension plan needs, including actuarial valuations, holistic plan design, and compliance consulting.
One of the key advantages of Fidelity's pension solutions is their fully managed administration service. This service ensures regular communication around planning, updates, and reports, providing peace of mind and keeping clients informed.
Fidelity also offers Pension Journey Pools, a comprehensive series of commingled pools designed to help plan sponsors achieve fully funded status in a cost-efficient manner. Additionally, their Market-Based Cash Balance (MBCB) plan acts as both a defined benefit and defined contribution plan, providing flexibility for different retirement goals.
Fidelity's pension solutions are tailored to meet the unique needs of their clients, ensuring they can build the ideal pension solution to achieve their retirement goals.
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Fidelity's pension offerings are available in a variety of formats, including self-select and default investment strategies
Fidelity's pension offerings are available in a variety of formats, all designed to meet plan sponsors' specific goals. These include self-select and default investment strategies.
Self-select investment strategy
With the self-select strategy, you can choose the funds yourself from a range of options available through your pension plan. This allows you to tailor your investment strategy to your particular long-term goals.
Default investment strategy
The default investment strategy is designed to give you peace of mind that experts are helping to look after your investments. The funds are carefully selected and monitored by experts to help you build up savings for a comfortable retirement. This strategy is intended to meet the needs of a wide range of pension investors, including people of different ages, backgrounds, and income levels.
Fidelity also offers a range of other pension solutions, including:
- Pension Journey Pools: a series of commingled pools to help plan sponsors achieve fully funded status in a cost-efficient manner.
- Market-Based Cash Balance (MBCB): a "hybrid" defined benefit plan that combines features of both a defined benefit and defined contribution plan.
- Custom Investment Solutions: hands-on, outcome-oriented investment management that responds to market uncertainty.
Fidelity's pension offerings provide flexibility, allowing you to manage your retirement planning on your own or with guidance from their dedicated team of professionals. They also offer a range of account choices, resources, and tools to help you along the way.
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Frequently asked questions
Pensions are not technically an account, but they are another way people save for retirement. Although far less common than during their peak in the 1970s, pension plans are still offered by some employers and unions. Usually, your employer contributes money on your behalf over time into an investment account managed by your employer or union.
Your employer will usually make regular payments into your pot on your behalf. You may also make regular contributions from your salary. These will be deducted from your pay before you receive it each month and paid across to Fidelity on your behalf. When we receive your pension contributions, we invest them in funds, which hold money from tens of thousands of pension scheme members like you.
While you have less flexibility in choosing what to invest in and when to withdraw, a pension can help reduce longevity risk, or the risk of outliving your savings, because, in most cases, the employer must pay you the predefined amount in retirement until the day you or your beneficiary dies. A pension can guarantee you income for life, unlike other retirement accounts which have no guarantee.
You join your pension scheme automatically and your money is invested in a default investment strategy. Once you have joined, you can review your contribution levels, investment options and target retirement age, to ensure they meet your retirement goals.
You can consolidate your former 401(k) and workplace accounts into a single account without taxes or penalties.
