With U.S. plan participants holding $2.75 trillion in 401(k) plans and $4.16 trillion in all employer-based defined-contribution (DC) retirement plans, according to ICI, the assets held in target date funds are forecast to continue to grow rapidly.Torregrosa...
Our long-standing track record of managing target-date funds for sponsors and members since 2005, coupled with an approach that uses both active and passive managers, offers multiple price points, exposure to private assets, and is ESG inclusive. Glide path extending through retirement A glide ...
Already have one target-date fund suite in your plan? Here’s why adding another can offer retirement savers greater choice—and greater potential—to save.
Every target-date retirement fund family is different. Although Vanguard's target-date funds may all have similar glide paths based on the number of years until you reach your goal, Fidelity's Freedom funds may have completely different glide paths. You must examine each fund's glide path to...
To meet this objective, target date funds gradually become more conservative, increasing their allocations to bonds, cash, or cash equivalents. The mix of assets that adjusts throughout the life of the fund is known as the glide path. "If you have difficulty sticking to a strategy or ...
“Target-date funds have been very effective as a way to get millions of participants a professionally-managed portfolio that’s based upon their age,” says David Blanchett, head of retirement research for PGIM DC Solutions. But looking forward, the optimal portfolio probably isn’t the ...
As target-date funds have become more popular and had to compete against cheaper funds, their fees have come down significantly. Their asset-weighted average expense ratio was 0.32 percent at the end of 2022, according to Morningstar. That means an investor would pay $32 annually for every $...
An important question to ask when choosing among target-date funds: Is this a “to” fund, in which the glide path freezes your asset allocation the year you plan to retire, or a “through” fund that continues the glide path for 10 years or more past retirement before freezing your asse...
Most target-date funds are still structured as mutual funds, particularly those offered through employer-sponsored retirement plans. When selecting a target-date fund, consider the fund's glide path, underlying holdings, the fund manager's performance history, and fees. Of course, ensuring that the...
Target date funds, also known as life-cycle funds, aim to manage risk on behalf of investors in an effort to ensure that their retirement savings are protected as the date of retirement approaches. These funds are typically labeled by the intended year of retirement—such as "2055 Fund"—and...