Retirement Income Products at a Glance
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This table gives you a snapshot view of the features and tradeoffs of the various income products that Fidelity offers. For more details on any product, click on its name.
Guarantee or Payment Predictability Flexibility Principal Preservation Growth Potential Fees or Expense Ratio/Minimums¹
Individual Securities        
Bonds and Bond Ladders No explicit guarantees except US treasuries Investment accessible at any time without penalty³ Principal returned at maturity;subject to creditworthiness of issuer In rare cases, such as when bonds adjust for inflation No fees for most new issues; Generally $1,000 minimums; $5,000 for municipal securities
CDs² FDIC insurance up to $250K per issuer Investment accessible at any time without penalty³ Principal returned at maturity and covered by FDIC insurance4 None No fees for most new issues;³ $1,000 minimum
Dividend–Yielding Stocks Periodic income distributions, amount varies Investment accessible at any time without penalty³ Initial investment value can fluctuate Stock price appreciation, dividend growth Trading commissions apply
Fidelity Mutual Funds        
Fidelity Income Replacement FundsSM Monthly payments, amounts reset annually5, no guarantee Investment accessible at any time without penalty Principal fluctuates and is paid back over chosen time period Principal and income growth 0.54%–0.67% per year
$25,000 minimum
Fixed Income Funds Regular payments, variable amounts, no guarantee Investment accessible at any time without penalty Principal value will fluctuate Potential for capital appreciation 0.10%-0.89% per year, $2,500-$25,000 minimum
Allocation and Specialized Funds Regular payments, variable amounts, no guarantee Investment accessible at any time without penalty Principal value will fluctuate Potential for capital appreciation 0.57%-1.14% per year, $2,500 minimum
Money Market Funds Regular payments, variable amounts, no guarantee Investment accessible at any time without penalty Principal value typically stable None 0.18%-0.54% per year, $2,500-$1,000,000 minimum
Annuities        
Fixed Income Annuity Guaranteed income for life or term of the annuity Principal generally not accessible Principal exchanged for guaranteed income None, except with cost of living adjustment No fees
$10,000 minimum
Variable Income Annuity Guaranteed income for life, Payments may fluctuate Principal generally not accessible Principal exchanged for lifetime income Income growth 1.30%6
$25,000 minimum
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
Principal value and investment returns of a variable annuity will fluctuate and you may have a gain or loss when money is withdrawn or received.
Monthly payments of the Fidelity Income Replacement FundsSM 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.
Annuity guarantees are subject to the claims-paying ability of the issuing insurance company.

  1. All mutual fund expense ratios are before expense reductions. Income Replacement Funds’ expense ratios are from the most recent prospectus. All other expense ratios are from the funds’ most recent annual or semi-annual reports available as of 6/30/08.
  2. Refers to brokerage CDs.
  3. Trading fees apply in secondary market and prices prevailing in the secondary market may mean a loss of principal.
  4. Interest payments and principal are FDIC insured. For retirement accounts, such as traditional or Roth IRAs, FDIC insurance covers up to $250,000 per account owner per institution. For non–retirement accounts, the coverage was temporarily raised to up to $250,000 per account owner per institution. This increase will remain in effect until December 31, 2009. CDs maturing after December 31, 2009 will have the $250,000 coverage until December 31, 2009. After that date insurance will revert to the $100,000 level.
  5. Assumes the adoption of the Smart Payment ProgramSM in conjunction with the fund.
  6. Fidelity Freedom Lifetime Income® has an annual annuity charge of 0.60% with an average fund expense of 0.70%.

Before investing, consider the investment objectives, risks, charges and expenses of the fund or annuity and its investment options. Call or write to Fidelity or visit Fidelity.com for a free prospectus containing this information. Read it carefully.

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