Fidelity to Launch Freedom Lifetime Funds by Early 2027 as $770 Billion TDF Business Adds Guaranteed Income
Updated
Updated · The 401(k) Specialist · Jun 10
Fidelity to Launch Freedom Lifetime Funds by Early 2027 as $770 Billion TDF Business Adds Guaranteed Income
3 articles · Updated · The 401(k) Specialist · Jun 10
Summary
Early 2027 is the target for Fidelity to roll out Freedom Lifetime, a new suite of target-date collective investment trusts with a built-in option to convert part of savings into guaranteed lifetime income.
The product pairs Fidelity’s target-date strategy with an insurance pool backed by Nationwide and New York Life, aiming to give workers nearing retirement more predictable income without adding complexity for plans.
Participants on Fidelity’s recordkeeping platform will be able to model retirement-income scenarios, view real-time guaranteed income quotes and elect to shift a portion of balances into lifetime income when eligible.
Fidelity said the series will use a blended active-index approach with active asset allocation, while its target-date lineup already manages more than $770 billion in assets.