Fidelity Personal Retirement Annuity offered by Fidelity

Type of Product Variable Annuity
Product NameFidelity Personal Retirement Annuity
Offered byFidelity
Company InfoPrivately held Fidelity Invest... read more
Contract and Purchasing
Minimum Premium Payment10000
Minimum Additional Premium Payment250
Maximum Age at Start of Contract85
Total Number of Investment Options56 [Find annuities with more investment options]
Fixed Account
Features and Benefits
Are Telephone Transactions AllowedYes
Fees and Expenses
Minimum Total Fees and Expenses0.35 [Find annuities with lower fees and expenses]
Maximum Total Fees and Expenses2.68 [Find annuities with lower fees and expenses]
Minimum Mortality and Expense Risk Charge "M&E Fee"0.2 [Find annuities with lower mortality and expense fees]
Maximum Mortality and Expense Risk Charge "M&E Fee"0.2 [Find annuities with lower mortality and expense fees]
Administrative Fee0.00 [Find annuities with lower administrative fees]
Contract Maintenance Fee0.05 [Find annuities with lower contract maintenance fees]
Early Withdrawal Charges / Surrender Fees
Minimum Investment Management Fee0.1 [Find annuities with lower investment management fees]
Maximum Investment Management Fee2.43 [Find annuities with lower investment management fees]
Sales Compensation
Maximum Commissions2 [Find annuities with lower commissions] [Find annuities with higher commissions]
Contact Information
Company OfferingFidelity
Company TypeInsurance Company
Phone Number
Talk to a Financial Advisor
Contact Information Connect with a Financial Advisor
Reviews and Ratings
Average Review

5/5 from 1 Reviews

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Product Ratings and Reviews

Average: 5 (1 vote)

Fidelity has addressed one of the key flaws that plagues most variable annuity product designs by removing the guaranteed minimum death benefit.

The result is a variable annuity that is significantly less expensive than the vast majority of VAs.

The Fidelity Personal Retirement variable annuity has a M&E charge that is .25 percent or 25 basis points.  The fee for larger investments ($1 million or more) is only 10 basis points.

This is at least a full percent less than the industry norm for mortality and expense charges.

In addition, there are no surrender charges associated with this product.

Not entirely sure whether the lack of surrender charges has anything to do with the removal of the guaranteed death benefit.  May have more to do with the way the product is distributed (through Fidelity) and the associated sales compensation.

In any event, a very intelligent product design.  The presence of death benefits (and the associated costs) is a common criticism among industry analysts.  Many believe it is more efficient to simply buy inexpensive term life insurance for the death benefit.  The popularity of living benefits (most variable annuity products these days are sold with some type of living benefit) is a testament to the interest in and demand for living versus death benefits in VAs.

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