Fidelity Target Date Strategies

Help Keep Participants on Track for Retirement

Fidelity's Target Date Strategies help address one of the greatest retirement risks participants face—a shortfall in retirement income. See how we can help participants maintain their standard of living in retirement.

10 out of 13 FA Freedom Funds

ranked in the TOP DECILE of their Morningstar Category over the 3-year period1

Deep Understanding of Participants

20+ years of target date experience

At Fidelity we are passionate about people being able to live the life they want in retirement. With the industry’s largest recordkeeping platform, access to extensive participant data, and experience in working with plans of all sizes, participant and plan sponsor needs are central to our target date strategies.2 We’re able to use these insights about the retirement landscape to monitor participant behavior and evolve over time to help them reach their goals.

Commitment to Innovation Video

A Unique Investment Approach

Delivering outcomes through our best-in-class research and investment process*

Fidelity’s target date strategies are focused on helping investors maintain their standard of living in retirement through a disciplined investment approach that seeks to balance return objectives with the variety of risks investors face, such as market, longevity, and inflation risks.

  • Glide Path

    We believe the glide path is the most important investment decision and a key contributor to achieving retirement income goals. Our glide path is supported by unparalleled investment resources and is aligned with an investor’s long-term horizon.

    Integrating Fidelity’s investing and retirement expertise into the design, our glide path:
    1. Incorporates our capital market insights and research on behavioral trends to determine the asset allocation mix over an investor’s lifetime.
    2. Emphasizes diversification, flexibility, and risk management to try to provide resiliency throughout changing market environments.
    3. Takes a “through” approach, which considers an investor’s entire lifetime to help mitigate one of the greatest risks for a retiree—a shortfall in retirement income.
  • Active Management

    Active management plays an important role in our active and blended target date strategies. We believe we can take advantage of market inefficiencies through active management decisions with the goal of providing participants additional years of retirement income.

    of additional returnper year can equal 1–13 years ofadditional retirement income.3As little as .25%0.25%
  • Research

    Fidelity global research informs our unique insights on the financial markets—and on investor behaviors and goals. We use this research to build and manage our glide path, and to integrate our short-term capital market views into our active management strategy.

    The Fidelity global research teamhas over350 team members.4+350

Take a Closer Look at What Drives Our Process

Commitment to Delivering Value

Bringing together competitive pricing, product choice, and better outcomes

It’s easy to see why Fidelity Target Date strategies offer participants and plan sponsors outstanding value across the spectrum. At Fidelity value means so much more than low cost. Providing superior overall value to our clients is critical, and for Fidelity this translates to:

CostsDelivering one of thelowest-cost solutionsin the industry
ProductsOffering a broad selectionof products to help meetvarious client needs
OutcomesHelping to ensure betteroutcomes for participants

Pricing, Choice, and the Potential for Better Outcomes

Fidelity Target Date strategies
  • Index
  • Active
  • Morningstar Analyst Rating Bronze
Vehicle Active Asset Allocation Expenses5 Peer Rank
FA Freedom (Active)
’40 Act Mutual Funds Yes CL I: 47–75 bps
CL Z6: 37–50 bps
8th percentile6
FA Freedom Blend (Blended)
’40 Act Mutual Funds Yes CL I: 46–55 bps
CL Z6: 26–35 bps
NA7
FIAM Blend Target Date (Blended)
Collective Investment Trust (CIT)8 Yes 18–32 bps | 0 bps
RK offset
28–42 bps | 10 bps
RK offset
8th percentile9
Freedom Index (Index)
’40 Act Mutual Funds No Investor: 12 bps
Inst’l Prem: 8 bps
22nd percentile10
FIAM Index Target Date (Index)
Collective Investment Trust (CIT)8 No $100M: 12 bps
$100M-$200M: 8 bps
$200M-$1,000M: 7 bps
$1,000M-$2,000M: 6 bps
>$2,000M: 5 bps
25th percentile11
FA Freedom (Active)
Vehicle ’40 Act Mutual Funds
Active Asset Allocation Yes
Expenses6 CL I: 47–74 bps
CL Z6: 37–49 bps
Peer Rank 10th percentile8
FIAM Target Date (Blended)7
Vehicle Collective Investment Trust (CIT)
Active Asset Allocation Yes
Expenses6 24–40 bps | 0 bps RK offset
34–50 bps | 10 bps RK offset
Peer Rank 14th percentile9
Freedom Index (Index)
Vehicle Collective Investment Trust (CIT)
Active Asset Allocation No
Expenses6 Investor: 14 bps
Inst’l Prem: 8 bps
Peer Rank 22nd percentile10
FIAM Index Target Date (Index)
Vehicle ’40 Act Mutual Funds
Active Asset Allocation No
Expenses6 <$100M: 14 bps
$100M-$200M: 8 bps
$200M-$1,000M: 7 bps
$1,000M-$2,000M: 6 bps
>$2,000M: 5 bps
Peer Rank 8th percentile11

Explore Fidelity Target Date strategies in more detail and see how we compare to other providers.

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