Fidelity’s shift toward managed accounts and private assets is expected to change fees and access for average 401(k) savers, with the company managing 401(k) plans for over 28,800 businesses and processing 5.7 million daily trades. The bottom line is that investors will note a potential impact on their retirement savings, as Fidelity’s 20-year forecast projects U.S. stock returns at 5.8% annually, or 3.2% after inflation, below historical averages.
Background And History
Fidelity Investments, one of the largest asset managers in the world, has been investing in private companies for many years, with a firmwide stake of roughly $5 billion in Anthropic, an artificial intelligence company. The company has also been offering cryptocurrency investing and has its own stablecoin, the Fidelity Digital Dollar (FIDD) on the Ethereum network. By the numbers, Fidelity’s assets under management total $7.8 trillion, and assets under administration total $19.9 trillion, as of June 2026.
Changes In Fee Structures
The shift toward managed accounts and private assets may lead to changes in fee structures for default options, potentially affecting the average 401(k) saver. Fidelity’s 20-year forecast suggests that U.S. stock returns will be lower than historical averages, which could translate to slower growth over time and less money in retirement accounts. The figure that matters is the 3.2% annual return after inflation, which is significantly lower than the S&P 500’s historical average of roughly 10% since it launched in 1957.
Impact On Average 401(k) Savers
For average 401(k) savers, the impact of Fidelity’s shift will depend on their individual investment strategies and risk tolerance. Investors will note that Fidelity calculates required minimum distributions (RMDs) automatically for owned IRAs, but requires heirs to elect an ‘Inherited RMD’ option for inherited IRAs. European investors are increasing allocations to active ETFs, with a projected rise from 10.2% to 14.6% over the next 18 months, which may be a trend worth watching for 401(k) savers.
What Participants Should Watch For
Participants in 401(k) plans managed by Fidelity should watch for changes in their statements and review their investment options carefully. The company’s shift toward managed accounts and private assets may lead to new investment opportunities, but also potentially higher fees. Investors should reevaluate their timeline and savings needs, considering the potential for slower growth over time. As Brianna Rodgers, director of investor education at Madison Trust Company, notes, “those with certain expectations surrounding consistent market growth may see an impact in their savings when compounded over a set number of years.”
Long-Term Implications
The long-term implications of Fidelity’s shift toward managed accounts and private assets are significant, with potential impacts on retirement savings and investment strategies. As the company continues to invest in private companies like Anthropic, investors will note the potential for growth, but also the risks associated with private assets. The figure that matters is the $5 billion firmwide stake in Anthropic, which demonstrates Fidelity’s commitment to private investments. Talk to your financial advisor or investment manager to understand how Fidelity’s shift may affect your individual retirement savings and investment strategy.
Sources
- Fidelity Investments
- How Fidelity Built Its Anthropic Bet
- Vanguard and Fidelity have a warning for retirement savers
- Fidelity Calculates the RMD on Your Own IRA Automatically. On the IRA You Inherited From Your Mother It Calculates Nothing Unless You Ask, and 2026 Is the Second Year the IRS Is Charging the 25% Penalty
- L&G Artificial Intelligence UCITS ETF (AIAG)
- Fidelity International Reveals Active ETF Growth Trends
Photo: Gage Skidmore from Surprise, AZ, United States of America (CC BY-SA 2.0)
