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Fund choices in retirement

If you’re considering where to invest your pension savings, you might be comfortable selecting your own investments, or you may be daunted by the choice on offer. Either way, a good place to start is to understand your goals and the basic principles of investing you can use to achieve them.

To help get you started­, here are some ideas from our experts that are designed to pay an attractive and sustainable income for you to consider, based on the level of help you might need.

Whichever approach you adopt, you should first think about your appetite for risk - you'll want funds that strike the right balance for you between risk and reward. Of course, this should be determined by your goals as well as by your financial position.

The value of investments and the income from them can go down as well as up and you may get back less than you invest. This information is not a personal recommendation for any particular product, service or course of action. Pension and retirement planning can be complex, so if you are unsure about the suitability of a pension investment, retirement service or any action you need to take, please contact Fidelity’s Retirement Service or refer to an authorised financial adviser.

Find a ready-made solution

If you would like to leave the day-to-day management of your portfolio to investment experts, you may want to consider one of our Multi Asset funds. Each of these three income-focused funds invests in a range of other funds that are picked by Fidelity experts to suit a particular level of risk. Our experts handle all the day-to-day decision making and change the mix of holdings to suit market conditions and their investment objectives.

If you’re not sure where to invest your retirement savings, these funds could be a starting point – and you’re free to make changes later, as you can move your money between funds with no charge.

Each of these highly diversified funds invests in a range of other funds and aims to deliver a target income of 4-6%, although this is not guaranteed.

Fidelity Multi Asset Income

Invests in equities, bonds and non-traditional assets like infrastructure, loans and renewables. Asset mix helps the overall yield to be more sustainable and aims to be less prone to market shocks.

Fidelity Multi Asset Balanced Income

Primarily aims to generate an income but also looks to grow capital over time. Tactically switches between types of asset to potentially enhance returns.

Fidelity Multi Asset Income & Growth

Aims for sustainable income and capital growth. Fund will hold a greater weighting in higher-risk assets in search of higher yields and stronger returns.

To use these funds for pension drawdown please call our retirement specialists on 0800 368 6882, Monday to Friday, 9am - 5pm.


Get guidance

The experts in our Multi Asset team research thousands of funds each year. For the Select 50, we’ve asked them to pick their favourites from across the full range, which contains over 2,000 investment options. You can find the list here, but we’ve picked out six funds that focus on income to help you get started.

Please keep in mind that the Select 50 is not a personal recommendation to buy or sell funds. Equally, if a fund you own is not on the Select 50, we're not recommending you sell it. You must ensure that any fund you choose to invest in is suitable for your own personal circumstances.

Fidelity MoneyBuilder Income

Primarily invests in fixed interest securities – gilts and corporate bonds. Has the freedom to invest outside its principal geographies, market sectors, industries and types of assets.

Fidelity Global Dividend

Aims for strong long-term returns with lower volatility than the broader market. Stocks with good margin of safety aim to provide degree of capital protection in volatile markets.

Fidelity Enhanced Income

Aims for both capital growth and high, regular yield. Looks for companies that deliver consistent dividend growth.

Invesco Perpetual European Equity Income

Highly collegiate research approach focusses on sharing ideas and materials. Aims for a rising level of income and long term capital growth. Invests primarily in European equities, excluding UK.

Invesco Perpetual Global Equity Income

A team of fundamental stock-pickers, led by Chief Investment Officer Nick Mustoe. Valuation and quality key factors.

JOHCM UK Equity Income

Manager is a bottom-up stock-picker, focusing on fundamentals of individual companies. High-yielding recovery or turnaround situations is a common theme.

Build your own portfolio

We offer funds from over 100 investment companies, so there’s a good chance you’ll be able to find what you need. To help you do this, our Investment Finder has a selection of filters that help turn over 2,000 investment options into your own personal short list.

Ready to chat?

Talk to someone about your retirement options in more detail

We can help

Close to retirement but unsure about the options and pitfalls ahead? We can offer guidance and advice to help you find the best solution for your retirement. Call us on 0800 368 6882, Monday to Friday, 9am - 5pm.

Fidelity’s retirement service

Pension Wise

The government’s Pension Wise service offers free, impartial guidance to help you understand your options at retirement. You can access the guidance online or call on 0800 138 3944.