- I have no plans to touch my money in the next five years
- I plan to use my money to set up a guaranteed income (annuity) within the next five years
- I plan to start taking my money as a long-term income within the next five years
- I plan to take out all my money within the next five years
What are Investment Pathways?
The Investment Pathways initiative from the Financial Conduct Authority (FCA) says that anyone with a Pension Drawdown Account should have access to simple, good value investments that broadly match their goals.
The FCA have laid out four broad goals that you may have and we've designed four investment solutions (Investment Pathways) which mirror those financial outlooks.
The Investment Pathway goals
These are the four broad five-year goals that someone in drawdown may have, and that our Investment Pathways aim to mirror.
Pension drawdown at a glance
It’s hard to know what you’ll be doing in the future, so picking a retirement income to last a decade or two (and, hopefully, even longer) isn’t easy. At Fidelity, we don't charge drawdown fees, all you pay are your fund managers’ ongoing charges and our low-cost service fee, so our pension gives you the flexibility to take whatever income you want – and change it when you need to.
- You can usually take up to 25% of your pension pot as a tax-free lump sum
- You have the option of taking this cash from your pension pot at any point from age 55 (57 from 2028)
- The rest of your money stays in your pension pot for you to manage
- Flexibility of taking money when you need it and making further contributions if you wish
- If you manage your money carefully and regularly review how any income is reducing your pension pot, you can help to ensure that your money lasts as long as possible
- You can choose where to invest the money in your pension pot to meet your needs
- Any cash you take from your pension pot as drawdown reduces the amount of income you could receive
- All income is taxed the same as any earnings you have. You should ensure you understand what tax rates might apply to you
- You could run out of money if you take too much income from your pension pot
- Your pension pot could go down dramatically if you don’t regularly monitor how your funds are performing
- You need to decide which funds your pension pot is invested in as the performance of any funds will affect how long any income will last
The Fidelity Investment Pathways
Each of our Investment Pathways channels your money into an underlying Fidelity fund. These four funds are all ‘accumulation’ funds. This means that any income generated by the investments in the funds is re-invested so it contributes to the fund's growth.
You can decide how you use our Investment Pathways within your Pension Drawdown Account. This means you can spread your money over more than one Investment Pathway, move money from one Investment Pathway to another or choose an Investment Pathway for some of your money and invest the rest in your own choice of the other investments in our range.
If you would like to invest in our Investment Pathways, you will need to call our retirement team, available 9am to 5pm, Monday to Friday. If you want to transfer a pension, please read our transfer factsheet first.
- If you already have a Fidelity SIPP, our retirement specialists can help you understand Investment Pathways, drawdown, and offer guidance or personalised advice.
- If you want to transfer a pension to Fidelity, please call us if you’d like to discuss transfers further or would like an application form. To find out what you need to consider before you transfer, please read 'About transfers' below.
It’s important to understand that pension transfers are a complex area and may not be suitable for everyone. Before going ahead with a pension transfer, we strongly recommend that you undertake a full comparison of the benefits, charges and features offered. To find out what else you should consider before transferring, please read our transfer factsheet. If you are in any doubt whether or not a pension transfer is suitable for your circumstances we strongly recommend that you seek advice from an authorised financial adviser.
Find out more about transferring pensions to Fidelity.