Fidelity's 401(k) Plan Annuity Platform Goes Live
Fidelity Investments announced Thursday the official public launch of its Guaranteed Income Direct platform, designed to allow retirement account owners to convert all or a portion of their savings from a 401(k), 403(b) or 457(b) plan into an immediate income annuity.
Fidelity first revealed its plans for Guaranteed Income Direct in late 2021, and it began testing the program and preparing for rollout more than a year ago. The firm says the annuity platform is now fully live and ready to help savers enter retirement with a greater sense of financial security.
“A key challenge for employees as they transition from saving for retirement to living in retirement is ensuring there’s enough predictable income to cover essential expenses,” says Keri Dogan, senior vice president of financial wellness and retirement Income solutions at Fidelity. “Many people feel anxious about how to generate income in retirement and want to reduce the risk of outliving their assets.”
Dogan points to Fidelity survey data showing retirement preparedness is a source of financial stress for employees. A significant majority (79%) are worried they won’t have enough money to last their lifetime, while 85% feel employers should take more responsibility in helping them prepare for retirement.
