About Fidelity Income Replacement Funds℠

Fidelity Income Replacement Funds* can help you:
Build a bridge income strategy
Use a Fidelity Income Replacement Fund to bridge an income gap and cover
expenses until other income sources become available, or to postpone
receiving Social Security or pension payments in order to receive larger
payments from these sources in the future.
Make the most of your early years in retirement
You may decide to spend some of your savings to fund
an active lifestyle during the earlier years of your
retirement. Use Fidelity Income Replacement
Funds to turn the money you have set aside
for this purpose into monthly payments.
 
Supplement long-term income
Use a Fidelity Income Replacement Fund
to generate a long-term stream of payments
for retirement expenses for 20 years or more,
while you maintain total control of your assets.
 

How to use the Fidelity Income Replacement Funds

  • Identify the time period for which you wish to receive payments
  • Estimate the monthly amount you believe you will need or the dollar
    amount of your assets you might want to set aside for this goal
  • Use the estimator to determine the appropriate Fund, initial investment
    required, and estimate your payments for the first year
Need more detail? View Frequently Asked Questions
Fidelity Income Replacement Funds invest in an underlying mix of Fidelity equity, fixed income and short-term mutual funds. Over time this mix will automatically shift to become more conservative as you near the Fund's horizon date.
These Funds are designed to work with the Smart Payment ProgramSM to turn some of your retirement savings into regular monthly payments.
  • The monthly payments are comprised of fund dividends and the necessary portion of your principal, while your remaining assets stay invested for potential growth
  • At the beginning of each year the payment rate increases based on a predetermined schedule, and is designed so that the payments, while not guaranteed, can keep pace with inflation
  • If the market performs strongly in any given year, your payments may increase the next year; poor market performance could lead to decreased payments
  • When the fund reaches its target year, all of your remaining principal including any market gains will be returned to you, and the fund will be closed shortly thereafter
These asset allocation mutual funds are intended to supplement other retirement vehicles such as annuities, pensions and Social Security.
*Each Fidelity Income Replacement Fund's investment objective is intended to support a payment strategy through the Smart Payment Program (“SPP”). Monthly payments may not keep pace with inflation and will fluctuate year over year. Monthly payments will result in the gradual liquidation of an investment in the Fund by its horizon date. As with any mutual fund, withdrawals will reduce the investment balance and future returns are not earned on amounts withdrawn. The Funds and SPP may not be appropriate for all investors. Please consult the Fund's prospectus for more details.

Performance of the Fidelity Income Replacement Funds depends on that of their underlying Fidelity funds. These funds are subject to the volatility of the financial markets in the U.S. and abroad and may be subject to the additional risks associated with investing in high yield, small cap and foreign securities.

Please note, the Fidelity Income Replacement Funds and the Smart Payment Program may not be appropriate for all investors. Investors who own a Fidelity Income Replacement Fund within a tax-advantaged retirement account and who elect to participate in the Smart Payment Program should consult with their tax advisers to discuss tax consequences that could result if payments are distributed from their core account prior to age 59 1/2 or they plan to use the Smart Payment Program, in whole or in part, to meet their annual minimum required distribution. You should consult a financial adviser or Fidelity representative to determine whether a Fidelity Income Replacement Fund is right for you.

Before investing, consider the funds' investment objectives, risks, charges and expenses. Contact Fidelity for a prospectus containing this information. Read it carefully.
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