Fund choices in retirement

If you’re considering where to invest your pension savings, you might be comfortable selecting your own investments, or you may be daunted by the choice on offer. Either way, a good place to start is to understand your goals and the basic principles of investing you can use to achieve them.

Explore investment principles

To help get you started­, here are some ideas from our experts that are designed to pay an attractive and sustainable income for you to consider, based on the level of help you might need. 

  • Find a ready-made solution
  • Get guidance
  • Build your own portfolio.

Whichever approach you adopt, you should first think about your appetite for risk - you'll want funds that strike the right balance for you between risk and reward. Of course, this should be determined by your goals as well as by your financial position.

Find a ready-made solution

If you would like to leave the day-to-day management of your portfolio to investment experts, you may want to consider one of our Multi Asset funds. Each of these three income-focused funds invests in a range of other funds that are picked by Fidelity experts to suit a particular level of risk. Our experts handle all the day-to-day decision making and change the mix of holdings to suit market conditions and their investment objectives.

If you’re not sure where to invest your retirement savings, these funds could be a great place to start – and you’re free to make changes later, as you can move your money between funds with no charge.

Each of these highly diversified funds invests in a range of other funds and aims to deliver a target income of 4-6%, although this is not guaranteed.

To use these funds for pension drawdown please call our retirement specialists on 0800 368 6882

Get guidance

The experts in our Multi Asset team research thousands of funds each year. For the Select 50, we’ve asked them to pick their 50 favourites from across Fidelity’s full range, which contains over 2,000 options. This selection includes a number of funds designed to produce an income.

You can find the list here, but we’ve picked out six funds that focus on income to help you get started. Please keep in mind that the Select 50 is not a personal recommendation to buy or sell funds.

Fidelity MoneyBuilder Income

Co-manager Ian Spreadbury has been managing this fund for over 20 years
Primarily invests in fixed interest securities – gilts and corporate bonds
Has the freedom to invest outside its principal geographies, market sectors, industries and types of assets.

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Fidelity Global Dividend

Aims for strong long-term returns with lower volatility than the broader market
Manager draws heavily on Fidelity’s global research resource
Stocks with good margin of safety aim to provide degree of capital protection in volatile markets.

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Fidelity Enhanced Income

Aims for both capital growth and high, regular yield
Looks for companies that deliver consistent dividend growth

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Invesco Perpetual European Equity Income

Highly collegiate research approach focusses on sharing ideas and materials
Aims for a rising level of income and long term capital growth
Invests primarily in European equities, excluding UK.

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Invesco Perpetual Global Equity Income

A team of fundamental stock-pickers, led by Chief Investment Officer Nick Mustoe
Valuation and quality key factors

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JOHCM UK Equity Income Fund

Manager is a bottom-up stock-picker, focussing on fundamentals of individual companies
Fund’s yield discipline uncovers market inefficiencies and under-valued stocks
High-yielding recovery or turnaround situations is a common theme

Read more

Build your own portfolio

We offer funds from over 100 investment companies, so there’s a good chance you’ll be able to find what you need. To help you do this, our fund supermarket has a selection of filters that help turn 2,000 investment options into your own personal short list.

Explore over 2,000 funds to invest in

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Get some expert help

If you need help with your retirement plans then Fidelity's retirement service has retirement specialists who are able to provide both guidance and advice. The service we offer is based purely on helping you find the most appropriate solution for your personal circumstances. Call us on 0800 368 6882.

Pension wise logo

The government's Pension Wise service offers free, impartial guidance to help you understand your options at retirement. You can access the guidance online at www.pensionwise.gov.uk or over the telephone on 0800 138 3944.