Target Date Solutions

Strong Results From a Target Date Leader

At T. Rowe Price, we believe that investment success for multi-asset solutions comes from balancing market, inflation, and longevity risks. This principle is at the core of our target date philosophy—and serves as the foundation for every decision we make to seek the best possible outcomes for our clients.

Pursuing strong, long-term returns for a better retirement: T. Rowe Price Retirement Funds

Each and every T. Rowe Price Retirement Fund with at least 10 years of history has generated a higher balance for investors compared with its corresponding S&P Target Date Index benchmark since launching through December 31, 2023.

Pursuing strong, long-term returns for a better retirement: T. Rowe Price Retirement Funds

View standardized returns, expense ratios, and other information about the funds in this analysis.

Performance data quoted represents past performance. Past performance cannot guarantee future results. Investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original value. Current performance may be higher or lower than the performance data quoted. To obtain the most recent month‑end performance, visit troweprice.com.

Average annual total return figures include changes in principal value, reinvested dividends, and capital gain distributions.

^Index performance is for illustrative purposes only and is not indicative of any specific investment. Investors cannot invest directly in an index.

*S&P Target Date 2045 Index from fund inception to 5/31/08. S&P Target Date 2050 Index 6/1/08 to 12/31/23

**S&P Target Date 2045 Index from fund inception to 5/31/09. S&P Target Date 2050 Index 6/1/09 to 12/31/23

The T. Rowe Price Retirement 2060 and 2065 Funds were omitted from this analysis because they have less than 10 years of performance history.

Three Differentiators to Help Support Lifetime Income

Three Differentiators to Help Participants Achieve Lifetime Income
  1. Goal-Driven Glide Path

    To help support lifetime income through prudent risk management

  2. Dynamic Tactical Adjustments

    To help mitigate risks and enhance returns

  3. The Opportunity of Active Management

    Our target date portfolios are invested across asset classes, regions, styles, and capitalizations seeking to reduce portfolio volatility and deliver strong, long-term performance

Our Best Thinking, Translated Into Solutions

Collaboration between our portfolio management and global research teams underlies our history of leadership.

  • Over 30 years of offering asset allocation solutions to meet client objectives
  • Pioneer in offering target date solutions since 2002
  • Commitment to dedicated multi-asset research and development

We've Added Value for Our Clients Over Time

Over 95% of our Retirement Funds with a 10-year track record beat their 10-year Lipper average as of 12/31/20231

For all 11 Retirement Funds with a 10-year track record, tactical allocation added value in 84% or more of all rolling five-year periods and in 98% of rolling 10-year periods since inception2

T. Rowe Price Retirement Funds recognized with 8 2022 Refinitiv Lipper Fund Awards for strong risk-adjusted performance across 3-, 5-, or 10-year periods3

Active portfolio management added excess returns in 79% of rolling 10-year periods since inception for each T. Rowe Price Retirement Fund2

Strong Performance and Risk-Adjusted Outcomes

Our Retirement Funds have regularly outperformed across rolling 3-, 5-, and 10-year periods since inception.4

As of December 31, 2023

Top Quartile vs. Peers


Percent of time Retirement Funds were in top quartile5compared with Morningstar peers

Top Quartile vs. Peers

Top Half vs. Peers


Percent of time Retirement Funds were in top half compared to Morningstar peers6

Top Half vs. Peers

Outperformance over S&P Target Date Index

Percent of time Retirement Funds exceeded the S&P Target Date Index

Outperformance over S&P Target Date Index

Risk-adjusted outperformance over peers

Percent of time Retirement Funds’ Sharpe Ratioswere in top half compared with Morningstar peers

Risk-adjusted outperformance over peers

Past performance cannot guarantee future results.

Results will vary for other periods, and all funds are subject to market risk.

36 of our 42 Retirement Funds had a 10-year track record as of 12/31/2023 (includes Investor, Advisor, and R-Class Shares). 35 of these 36 funds (97%) beat their Lipper average for the 10-year period. 42 of 42 (100%), 26 of 39 (67%), and 37 of 39 (95%) of the Retirement Funds outperformed their Lipper average for the 1-, 3-, and 5-year periods ended 12/31/2023, respectively. Calculations are based on cumulative total return. Not all funds outperformed for all periods. (Source for data: Lipper Inc.)

We examined the performance of all of our Retirement Funds (RFs) that had at least 10-year track records as of December 31, 2023. To quantify the total value added by T. Rowe Price’s target date implementation, RF returns in each rolling period were compared with the corresponding S&P target date index. To account for the differing inception dates (and thus, longevity) of each RF, these averages were time-weighted—that is, the results are based on the percentage of the total performance periods in each time frame provided by each RF. To provide a summary of the effectiveness of T. Rowe Price’s target date process, we calculated performance averages for all 11 RFs across all 3 levels of our analysis (total value added, tactical allocation, and security selection). To account for the differing longevity of each RF, these averages were time-weighted—the results are based on the percentage of the total performance periods in each time frame provided by each RF. To quantify the value added by T. Rowe Price’s tactical allocation process, RF returns calculated using each fund’s fixed strategic asset allocation were compared with the returns based on actual allocation weights. To quantify the value added by security selection, excess returns—net of fees and other costs—were calculated for the underlying funds in each RF. Returns were calculated relative to each underlying fund’s asset class, sector, or style benchmark. Returns were then aggregated to show the total excess returns for each RF. To quantify the total value added by T. Rowe Price’s target date implementation, RF returns in each rolling period were compared with the corresponding S&P Target Date Index. The complete study and methodology for the 11 funds included in our analysis can be found at troweprice.com/tdf.

For Lipper Best Individual Funds, the calculation periods extend over 36, 60, and 120 months. The highest Lipper Leader for Consistent Return (Effective Return) value within each eligible classification determines the fund classification winner over 3, 5, or 10 years as of the period-end and no other time periods. Only one share class (the one with the best Lipper Leader score) is used for each portfolio in determining asset class and overall awards. Only eligible investors may purchase Institutional shares. See a prospectus for eligibility requirements and other available share classes. From Lipper Fund Awards from Refinitiv, ©2022 Refinitiv. All rights reserved. Used under license.

Figures reflect the aggregate performance of the 11 Retirement Funds (RF) with a 10-year track record (Retirement 2005 through Retirement 2055 Funds).

Of the 11 Retirement Funds with a 10-year track record (the Retirement 2005 through 2055 Funds), 8 of 11, 10 of 11, and 10 of 11 were in the top quartile for the 3-, 5-, and 10-year periods ended December 31, 2023. Calculations are based on cumulative total return. Not all funds outperformed for all periods.

6 Of the 11 Retirement Funds with a 10-year track record (the Retirement 2005 through 2055 Funds), 11 of 11, 11 of 11, and 11 of 11 funds were in the top half for each of the 3-, 5-, and 10-year periods ended December 31, 2023.

Sharpe ratio is a measure of excess return per unit of risk. It measures return above or below the risk-free rate (T-bills), per unit of risk taken (portfolio’s standard deviation).

Portions of the mutual fund information contained in this display was supplied by Lipper, a Refinitiv Company, subject to the following: Copyright 2022 © Refinitiv. All rights reserved. Any copying, republication or redistribution of Lipper content is expressly prohibited without the prior written consent of Lipper. Lipper shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

The principal value of the Retirement Funds is not guaranteed at any time, including at or after the target date, which is the approximate year an investor plans to retire (assumed to be age 65) and likely stop making new investments in the fund. If an investor plans to retire significantly earlier or later than age 65, the funds may not be an appropriate investment even if the investor is retiring on or near the target date. The funds’ allocations among a broad range of underlying T. Rowe Price stock and bond funds will (with the exception of the Retirement Balanced Fund) change over time. The funds (other than the Retirement Balanced Fund) emphasize potential capital appreciation during the early phases of retirement asset accumulation, balance the need for appreciation with the need for income as retirement approaches, and focus on supporting an income stream over a long-term postretirement withdrawal horizon. The funds are not designed for a lumpsum redemption at the target date and do not guarantee a particular level of income. The funds maintain a substantial allocation to equities both prior to and after the target date, which can result in greater volatility over shorter time horizons.

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Source: MSCI. MSCI and its affiliates and third party sources and providers (collectively, “MSCI”) makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed, or produced by MSCI. Historical MSCI data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.

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T. Rowe Price Investment Services, Inc., Distributor.

202311-3237102

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