Our Retirement Income Fund offers an innovative solution to some of the issues you may face in retirement, and is a simple and effective way to reorganise your non-pension savings and take control of your finances.
Fund benefits
- It's a relatively low-risk investment
- By investing mainly in bonds, with exposure to shares and index-based commodities it's designed to provide better returns than cash alone
- Specifically aimed to allow 4% p.a. withdrawals, whilst keeping pace with inflation
- Consolidate other savings and investments into one easily managed account
- Access your money whenever you want, with the flexibility to take a regular income
How this fund works
The Fidelity Retirement Income Fund gives you the flexibility to invest how you like. You can choose to take an income in one of two ways.
Looking for flexibility?
With the Retirement Income Fund (Acc) you can take an income or keep it invested. This version of the fund generates an income from the underlying investments and re-invests it into the fund. You can then withdraw money when ever you want. And by using our
Regular Withdrawal Plan, you can determine exactly how much money is paid out to you each month, quarter or even annually.
To pay your withdrawals, we'll sell the necessary number of your shares in the fund and send the money to your bank account. There's no charge for the Regular Withdrawal Plan and you can stop the withdrawals at any time.
If regular withdrawals are made from an investment, this may reduce the capital over time if the fund's growth does not compensate for the withdrawals.
Of course, you can just leave your money where it is.
Want your income automatically?
We also offer investors a specially designed version of this fund, which provides monthly payments into your bank account. It's aimed at paying 4% annual income (a fixed payment per share calculated at the beginning of each fund year, based on the average monthly share price over the previous fund year). The amount you'll receive each month is then dependent on the number of shares you hold.
The income payout is made from income generated from the fund. If there is not enough income to cover the payment then the remainder will be taken from capital. This may reduce your capital over time if the fund's growth does not compensate for the withdrawals.
Paying attention to your withdrawal rate
We've done a lot of analysis that suggests a 4% rate of withdrawal can help your money last longer.
How can you invest new money?
You can put our Retirement Income Fund into an ISA, or invest outside an ISA.
How can you move existing investments?
You can move ISAs and other investments held at different companies into the Retirement Income Fund in two easy steps:
- Consolidate your investments using our Consolidation Tool
- Switch them into the Retirement Income Fund for a fee of just 0.25%
The Retirement Income Fund invests overseas as well as the UK, so it's important to remember that the value of your investment may increase or decrease as a result of currency fluctuations. Also, the value of these funds can go down as well as up so you may get back less than you invested.
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