Fidelity Freedom Lifetime Income Annuity *

Transcription

1 Fidelity Freedom Lifetime Income Annuity * SECURE A STREAM OF INCOME 1 THAT S GUARANTEED 2 FOR LIFE.

2 Fidelity insurance products are issued by Fidelity Investments Life Insurance Company (FILI) and, in New York, by Empire Fidelity Investments Life Insurance Company, New York, N.Y. FILI is licensed in all states except New York. The contract s financial guarantees are solely the responsibility of the issuing insurance company. An important part of your retirement plan You re smart to be considering a variable income annuity as part of your overall retirement income plan that provides immediate income payments that last for the rest of your life. 1

3 Fidelity Freedom Lifetime Income Secure a stream of income 1 that s guaranteed 2 for life. The Fidelity Freedom Lifetime Income (FFLI) annuity can help you reduce the risk of outliving your retirement savings by providing income that will last for the rest of your life. Your income will also have the potential to grow over time to help keep pace with inflation. This variable income annuity provides: Lifetime income. You (or you and your spouse) will receive income payments guaranteed 1 to last a lifetime in return for a lump-sum payment. To receive these lifetime income payments, however, you will have limited or no access to your assets. Income growth potential. Your payment amounts are based on the performance of a diversified portfolio within FFLI and will fluctuate increasing or decreasing over time. Although payment amounts are not guaranteed, the potential for payments to grow can help you keep pace with rising costs and inflation. Professional money management. Your lifetime income is generated from a Fidelity-managed diversified portfolio. You can choose from two types based on your age or your risk tolerance. With these portfolios, fund managers make the investing choices, monitor the results, and maintain each portfolio s target asset mix. Fidelity takes the guesswork out of making investment decisions so you don t have to do it alone. A low-cost annuity that may mean more income. Because our low annual annuity charge of 0.60% 3 is significantly lower than the industry average of 1.14%, more of your money will go to generating income and less to paying fees. Features to help address your unique retirement needs. With FFLI, you have the ability to select and pay for only the features you need. You may choose to purchase protection for your heirs to ensure beneficiaries will receive any remaining income payments for a specific period of time typically from 5 to 45 years, or, if eligible, a withdrawal period that offers flexible access to annuity funds. 4 By means of an additional up-front premium, you can obtain the same initial payment you would otherwise receive. Keep in mind that taking a withdrawal will reduce the amount of each of your future annuity income payments. * In New York, Freedom Lifetime Income. 1 Payment amount is not guaranteed and will fluctuate. 2 Guarantees are subject to the claims-paying ability of the issuing insurance company. 3 According to data based on Morningstar, Inc., Fidelity Freedom Lifetime Income s annual annuity charge of 0.60% is significantly lower than that of the industry s average annual annuity charge of 1.14% for immediate variable contracts as of 12/31/2011. Underlying fund expenses also apply. 4 Restrictions may apply; refer to prospectus. The withdrawal option is not available in all states and not applicable for non-qualified funds. Withdrawals of taxable amounts and taxable income received from an annuity are subject to ordinary income tax. Withdrawals of taxable amounts taken before age 59½ may be subject to a 10% IRS penalty.

4 Investing solutions made easy. Investing in the Fidelity Freedom Lifetime Income variable income annuity is simple. Just choose a portfolio based on your individual needs and let Fidelity do the rest. Fidelity VIP Freedom Lifetime Income Portfolios 5 Simply pick the portfolio that corresponds to the decade in which you were born, 6 and Fidelity s professionals do the rest. The allocation of each portfolio which invests in a combination of underlying Fidelity VIP equity, fixed-income, and short-term funds is adjusted over time, gradually becoming more conservative. This process is known as the roll down. The Fidelity VIP Freedom Lifetime Income portfolios are managed to gradually become more conservative over time as they approach their ultimate target asset allocation. Fidelity VIP Freedom Lifetime Income II and III are expected to ultimately merge with Fidelity VIP Freedom Lifetime Income I. As with all Fidelity Freedom Lifetime Income portfolios, principal invested is not guaranteed at any time, including when or after the funds reach their ultimate target asset allocation. You can choose from the following investment options: Fidelity VIP Freedom Lifetime Income I Portfolio if you were born in 1939 or earlier Fidelity VIP Freedom Lifetime Income II Portfolio if you were born in the 1940s Fidelity VIP Freedom Lifetime Income III Portfolio if you were born in the 1950s or later Fidelity VIP FundsManager Portfolios 5 Unlike a fund that typically invests in stocks or bonds, each Fidelity VIP FundsManager portfolio is a diversified portfolio made up of carefully selected funds. By choosing a portfolio, you can potentially provide a complete asset allocation investment strategy for your variable annuity assets. Each portfolio strives to provide reduced volatility through diversification. The portfolios are named according to the equity fund allocations in each. The fund you choose will depend on your tolerance for risk and your ability to adjust to fluctuations in value. If your risk tolerance changes over time, you can select a different portfolio that better suits your new perspective. Simply choose from one of the investment options listed below: Fidelity VIP FundsManager 20% Portfolio Fidelity VIP FundsManager 50% Portfolio Fidelity VIP FundsManager 60% Portfolio Fidelity VIP FundsManager 70% Portfolio Fidelity VIP FundsManager 85% Portfolio 5 The performance of the Fidelity VIP Freedom Lifetime Income and Fidelity VIP FundsManager portfolios depends on that of their underlying Fidelity VIP funds. These portfolios 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, commodity-linked, small-cap, and foreign securities. 6 This is only a guide. Customers should evaluate their own circumstances before selecting a fund.

5 Fidelity Freedom Lifetime Income Annuity Quick Facts A low-cost variable income annuity Low annual annuity charge of 0.60% 4 No initial sales charges or annual maintenance fees How to fund your annuity Tax-free transfer from a qualified 401(k) plan, IRA, or other employer-sponsored plan Use money from your current savings, bonus, or inheritance Exchange an existing annuity to Fidelity tax free with a 1035 exchange 7 $25,000 minimum purchase amount Income options Provide income for the rest of your life with a single lifetime annuity Provide lifetime income for you and your spouse with a joint annuity An optional guarantee period that helps ensure that your beneficiaries will continue to receive income payments from the annuity for a certain length of time An optional withdrawal feature that allows up to two partial withdrawals per year if you purchase your annuity with pretax assets. Taking a withdrawal will impact the amount of future payments that you will receive. Investment options Fidelity VIP Freedom Lifetime Income portfolios Fidelity VIP FundsManager portfolios Can be invested in only one portfolio at any time Payment options Receive your income payment by check or have it directly deposited Choose to receive income payments annually, semiannually, quarterly, or monthly Select either the 1st or the 15th of the month for the payment calculation date Go to Fidelity.com/income to: View informative videos Explore our interactive tools Learn more about your investment options Get started today! Contact a Fidelity Representative at or visit a Fidelity Investor Center. 7 Before exchanging, check with your current provider to see if it will assess a surrender charge. Consider the existing benefits and features you may lose in an exchange, which may be of particular importance in poor market conditions. Diversification does not ensure a profit or protect against loss in a declining market.

6 Want more information? Go to Fidelity.com/income or call Before investing, consider the investment objectives, risks, charges, and expenses of the annuity and its investment options. Call or write to Fidelity or visit Fidelity.com for a free prospectus and, if available, summary prospectus containing this information. Read it carefully. Principal value, income payments, and investment returns of a variable income annuity will fluctuate, and you may have a gain or loss when money is received. Fidelity insurance products are issued by Fidelity Investments Life Insurance Company (FILI) and, in New York, by Empire Fidelity Investments Life Insurance Company, New York, N.Y. FILI is licensed in all states except New York. The contract s financial guarantees are solely the responsibility of the issuing insurance company. Fidelity Freedom Lifetime Income (Policy Form Nos. FFLI-Q-2005, et al., and FFLI-NQ-2005, et al.) is issued by Fidelity Investments Life Insurance Company. Freedom Lifetime Income (Policy Form Nos. EFLI-Q-2005, et al., and EFLI-NQ-2005, et al.) is issued by Empire Fidelity Investments Life Insurance Company. Fidelity Brokerage Services, Member NYSE, SIPC, and Fidelity Insurance Agency, Inc., are the distributors FMR LLC. All rights reserved FFLI_BLK_