Research

Designing a retirement income solution

Fidelity's managed cash flow strategy

By: Andrew Dierdorf Brett Sumsion

Updated: 8/4/2022

Executive Summary

Retirees need help managing risks and uncertainties associated with translating their accumulated savings into sustainable income over a full retirement horizon.
An effective retirement income solution requires a manager to first understand plan participants’ needs and then construct a strategy that weighs the factors and trade-offs that can influence outcomes.
Fidelity’s Managed Cash Flow withdrawal strategy helps balance participants’ preferences for high current income, regular payments, ongoing liquidity, and a positive lifetime asset balance.
Once selected for addition by a DC retirement plan sponsor, the Managed Cash Flow strategy can be offered as an installment distribution option to the plan’s participants.
The Managed Cash Flow strategy, when paired with a diversified investment portfolio, empowers retirement plan participants with an innovative, research-driven tool to help them achieve a successful retirement outcome.

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Designing a retirement income solution-Fidelity's managed cash flow strategy

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