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Fidelity Target Date Strategies
A professionally managed and diversified investment strategy designed to help participants maintain their current standard of living through a retirement that may last over 25 years.
Does your target date strategy have a goal of helping employees maintain their standard of living?
Employees face a number of challenges and uncertainties when it comes to saving and investing for retirement. Your plan design can help with both. While you've likely heard about the automatic features that can help with saving for retirement income, few understand how a target date strategy can play a critical role in seeking to provide the long-term returns they'll need to help make savings last in retirement. As a plan sponsor, selecting the right target date provider is more important than ever.
With 80% of plan sponsors reporting they have employees delaying retirement due to a lack of savings, it's important to choose a target date provider that can help drive strong retirement outcomes.1
Fidelity target date strategies help address the greatest risk in retirement
Fidelity believes the greatest risk for your employees is a shortfall in retirement income which could mean that they are unable to live the lives they have envisioned in retirement. Fidelity target date strategies can help them save for the future they've envisioned and be confident and ready to transition into retirement.
Why choose Fidelity as your target date provider?
Deeper insights into actual participant behaviors: Being the largest recordkeeping service provider means we have broader insights into what employees like yours are actually doing. With a rich source of over 21 million participants, we can monitor trends and evolve our strategies to help improve retirement outcomes on behalf of your employees.2
It can make a difference having a target date provider who understands what's at stake for your employees as the retirement landscape changes.
Better investment decisions throughout their lifetime: We believe the glide path is the most important investment decision and a key contributor to achieving retirement goals. That is why our glide path - or the strategy for decreasing the amount of equity in the overall investment mix over time - takes a "through" approach and considers an investor's entire lifetime, not just the day they retire.
Our capital market insights and research on behavioral trends helps inform the glide path and seeks to determine the right asset allocation mix throughout the investor's lifetime. With a strong emphasis on diversification, flexibility and risk management, our glide path seeks to provide resiliency throughout changing market environments.
Superior value: Backed by 2017 Morningstar-nominated fund managers of the year, our strategies offer competitive pricing, product choice–with active, blend, and index options - and the potential for better outcomes for your employees.3
As a benefits leader, you want to know you're doing all you can to help your employees be financially ready for retirement.
To learn more about Fidelity's target date strategies and explore the full suite of active, blend, and index solutions, contact your Fidelity representative.
1Source: Plan sponsor survey information was based on extensive research developed by Fidelity and fielded from February to March 2017 by an independent market research firm on behalf of Fidelity. Previous Fidelity surveys were conducted in 2008, 2010, 2012, 2013, 2014, 2015, and 2016.
2Fidelity Investments recordkeeping database, Total DC (incl. TEM) as of 3/31/2018.
3Established in 1988, the Morningstar Fund Manager of the Year award recognizes portfolio managers who demonstrate excellent investment skill and the courage to differ from the consensus, to benefit investors. To qualify for the award, managers' funds must have posted impressive returns for the year, and the managers must have a record of delivering outstanding long-term risk-adjusted performance and of aligning their interests with shareholders'. Managers' funds must currently have a Morningstar Analyst RatingTM of Gold or Silver over the past 12 months.
Unless otherwise disclosed to you, any investment recommendation in this document is not meant to be impartial investment advice or advice in a fiduciary capacity. Fidelity and its representatives have a financial interest in any investment alternatives or transactions described in this document. Fidelity receives compensation from Fidelity funds and products, certain third-party funds and products, and certain investment services. Fidelity may also receive compensation for services that are necessary to effect or execute transactions with respect to investment alternatives (such as trading commissions). The compensation that is received, either directly or indirectly, by Fidelity may vary based on such funds, products and services, which can create a conflict of interest for Fidelity and its representatives.
Designed for investors who anticipate retiring in or within a few years of the portfolio's target retirement year at or around age 65. Investing in a combination of domestic equity, international equity, bond, and short-term investment options. Allocating assets among underlying investment options according to a "neutral" asset allocation strategy that adjusts over time until it reaches an allocation similar to that of the Target Date Income portfolio approximately 10 to 19 years after the target year. Ultimately, the Target Date portfolio will merge with the Target Date Income portfolio. The portfolio manager reserves the right to modify the portfolio's neutral asset allocations from time to time when in the interests of shareholders. Buying and selling futures contracts (both long and short positions) in an effort to manage cash flows efficiently, remain fully invested, or facilitate asset allocation. Through an active asset allocation strategy, the portfolio manager may increase or decrease neutral asset class exposures by up to 10 percentage points for equity, bond and short-term portfolios to reflect the portfolio manager's market outlook, which is primarily focused on the intermediate term. Please note that our Target Date funds are not individualized and our ability to help participants meet their income replacement goals is dependent on both investment performance and participant contribution and withdrawal behavior.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
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