The company says it has 8 million workers age 50 to 64 on its savings platform, noting that the growing interest in these “guaranteed income” products was a key reason for offering this new option.
Workers in the Fidelity network will be able to buy an immediate income annuity, with institutional pricing and offered by an insurer of their choice, via Fidelity’s platform. Participants can select the product and the amount they want to convert on an individual basis. Any money not converted can remain in the workplace savings plan, the company said.